Apco O&G Wins Exploration Rights in Colombia
Apco O&G has been awarded the Llanos 40 block in southwestern Colombia's Llanos basin. The Llanos 40 block was part of the Colombian Open Bid Round 2010 held June 22, 2010.
Apco's bid was submitted together with Ramshorn International Limited ("Ramshorn"), a subsidiary of Nabors Drilling. Apco will hold a 50 percent working interest in the block. Ramshorn will hold the remaining 50 percent and operate the Block.
Llanos 40 covers approximately 163,000 acres and is situated roughly 175 kilometers to the northeast of Llanos 32 in which Apco previously acquired an interest by way of a farm-in agreement.
Apco's three-year first phase exploration work commitments will include seismic reprocessing, acquisition of 300 square kilometers of 3D seismic and drilling of four exploration wells.
The block is subject to an exploration and production contract that includes an eight percent initial royalty, plus an additional state participation of one percent. The contract requires approval of the Colombian National Hydrocarbon Agency.
"This makes our third exploration venture in Colombia, counting our existing participations in Llanos 32 and the Turpial Block in the Magdalena basin," said Thomas Bueno, Apco's president and chief operating officer.
"We are very pleased to have increased our presence in Colombia to help achieve our strategic objective of diversification. The areas in which we have now acquired interests contain attractive prospects in a country that today provides a welcoming business and operating climate for exploration and production companies," Bueno said.