Vast Exploration Takes Slice of Putumayo Basin
Vast Exploration has signed a Hydrocarbon Exploration and Production Contract (the "E&P Contract") with the Agencia Nacional de Hidrocarburos of Colombia ("ANH") for oil and gas exploration block PUT-03 (the "Block"). The Block was successfully won by the Company during a bid round held on June 22, 2010, in Cartagena, Colombia (the "Bid"). The Company has also agreed to farm-out a 90% interest in the Block to wholly-owned subsidiary of Sagres in consideration for the Company retaining a 10% carried interest during the first exploration phase (the "Carried Interest"), which phase shall consist of a minimum expenditure of US $12.9 million over a 36 month period.
The block has an area of 148,000 acres (gross) and is located in the Putumayo Basin of Columbia. The Block offers exploration upside on a structural trend with existing discoveries, and is situated strategically between two blocks (CAG-6 and PUT-09 ) awarded to Pacific Rubiales and Talisman Energy, respectively.
The Block carries a royalty of 7% payable to the Government of Colombia in addition to the basic royalty scheme established under Colombia Law, being 8% for up to 5,000 bopd and increasing to 25% for a 600,000 bopd field. All other terms of the contract are standard to the model Colombian E&P Contract. Sagres will have an option to acquire the Company's Carried Interest in the Block over the next twelve months at a price to be mutually agreed.
In 2010, Vast entered into a Letter of Intent with a private company ("Ontario Co."), whereby it would be granted a 90% interest in the Block in consideration for paying to Vast a fee of US $50,000, taking responsibility for 100% of the costs of the first exploration phase and reimbursing Vast for all expenses of the Bid and granting Vast the Carried Interest (the "LOI"). Ontario Co. was subsequently acquired by Sagres.
The transaction may be considered a Non-Arm's Length Transaction pursuant to the policies of the TSX Venture Exchange because Vast and Ontario Co. had a common officer, Ahmed Said, at the time the terms of the LOI were negotiated. Vast and Sagres are arm's length parties. Closing of the transaction remains subject to all requisite approvals, including without limitation, approval of the TSX Venture Exchange.
Ahmed Said, President and Chief Executive Officer of Vast stated, "We are pleased with the successful award in Colombia. The Carried Interest provides our shareholders with additional upside potential, without committing additional capital and while keeping our strategic focus on our primary asset in Kurdistan."
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- UK Oil Regulator Publishes New Emissions Reduction Plan
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- PetroChina Posts Higher Annual Profit on Higher Production
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- McDermott Settles Reficar Dispute
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil Demand Outpaces Expectations, Testing Calculus on Peak Crude
- House Passes Protecting American Energy Production Act
- TotalEnergies Restarts Production in Denmark's Biggest Gas Field
- USA Oil and Gas Job Figures Jump
- Republican Lawmakers Say IEA Has Abandoned Energy Security Mission
- Blockchain Demands Attention in Oil and Gas
- Houthis Warn Saudi Arabia of Retaliation If It Backs USA Attacks
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- Summer Pump Prices Set to Hit $4 a Gallon Just as Americans Hit the Road
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea