The current plan is to re-enter the Nancy 1 well and recommence production by use of a jet pump from the existing zones and also to perforate zones previously ignored. The workover rig is currently being contracted to commence operations in the next few months.
The consideration is $330,000 with an increased share of production for Gold until payback when a contribution to back costs is made. Gold has to pay its share of the re-entry costs estimated at $220,000.
Gary Moore, Managing Director of Gold, said "We have been looking at Colombia for some time and we like the many oil and gas opportunities there. We decided that NBM was an ideal low cost entry into a new country with an experienced and very low cost operator where we have every possibility for early cash flow and exploration upside".
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