PetroLatina announced an update on activities at its Putumayo-4 block, in which PetroLatina has a 50% interest and is the operator.
Reprocessing of 1,300km of historic 2D seismic data has now been completed and has confirmed the existence of at least 7 leads in the block. PetroLatina and its partner La Cortez Energy, together with representatives from the Ministry of the Interior, are currently collating information which will be used to define the layout of 103km of new 2D seismic, expected to be acquired during the second half of this year, as well as assisting with the application for the necessary environmental permit required for drilling the first exploratory well which is expected to be spudded towards the end of the year.
PetroLatina was the successful bidder for the Putumayo-4 block in the Colombian license bidding round 'Mini-Ronda 2008'. In early 2009, PetroLatina finalized farm-out terms with La Cortez in the form of a joint operating agreement under which the Company holds a 50% interest in the block, but is only responsible for 40% of seismic related costs and 50% of future capital expenditure.
The Putumayo-4 block covers an area of 51,333 hectares in the Putumayo Basin of southern Colombia and has over 400km of pre-existing 2D seismic data from which PetroLatina identified promising leads. The Putumayo Basin is considered by Colombia's upstream regulator, Agencia Nacional de Hidrocarburos ("ANH"), to be one of the most promising exploration areas in Colombia and is rapidly becoming a prolific hydrocarbon producer with companies such as Gran Tierra Energy Inc., Petrominerales and Ecopetrol, amongst others, operating in the region. This area is characterized by prospects with relatively large reserves potential and wells which produce at high rates in the range of 1,000 to 5,000 barrels of oil per day.
Juan Carlos Rodriguez, Chief Executive Officer of PetroLatina, commented, "The Putumayo-4 block is an exciting exploration asset in an area of Colombia which is rapidly becoming a prolific hydrocarbon producer. We look forward to providing a further update once the new 2D seismic has been acquired and interpreted in due course."
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