Petrolifera has concluded an agreement to farm-out of a portion of its 100 percent-owned Turpial License in the Middle Magdalena Basin, onshore Colombia.
Petrolifera has executed a farm-out agreement with Apco Properties Limited, a subsidiary of Apco Oil and Gas International Inc. ("Apco"), whereby Apco will reimburse Petrolifera approximately US $2.6 million, representing a portion of back-costs previously incurred on the Block and will carry Petrolifera for a share (US $1.9 million) of planned spending on the Block in 2010. After completion of the reimbursement and spending of US $1.9 million in total, Apco will earn a 50% working interest in the Turpial License.
The assignment of the 50% working interest in the Turpial License is subject to the approval of ANH, the relevant state agency of Colombia. Petrolifera will remain operator of the Turpial License.
Turpial covers approximately 110,000 acres of underexplored area between the significant Velazquez and Cocorna oil fields in the Middle Magdalena Basin, onshore Colombia. The anticipated activity on the Block, for the second phase of the License in 2010, is to expand seismic coverage acquired during the first phase of the License by acquiring 144 kilometers of additional 2D seismic. Subsequent drilling decisions, if any, will be determined by the outcome of the interpretation of the additional seismic.
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