Taghmen Energy Wins License in the Middle Magdalena Valley Basin
Taghmen Energy reports that the Colombian National Hydrocarbons Agency (ANH) has awarded the Company an exploration license, covering a block in the Middle Magdalena Valley Basin. The Company believes the region is highly prospective and has identified leads that are estimated to have the potential for recoverable reserves of up to 90 million barrels from the license.
ANH awarded seven additional exploration and production contracts at the same time, including, amongst others, two to each of BHP Billiton and HOCOL (Maurel & Prom) and one to Occidental Petroleum Corp. This highlights the resurgent appeal of Colombia to the international oil and gas industry.
The license in which Taghmen has obtained an interest is known as Midas and it is situated in the Middle Magdalena Valley Basin, adjacent to producing fields.
Taghmen is the operator of the Midas license and holds a 70% interest. It is planned to shoot and reprocess approximately $1.5 million of 2D seismic late in 2006. Several leads have been identified which provide the potential for recoverable reserves of up to 90 million barrels (63 million net to the Company).
The initial work program for Midas covers a six year time frame. It is possible to relinquish a portion of the license at the end of each year.
The license will be governed by a newly updated ANH contract, which eliminates the Colombian Government s right of back in and reduces the level of taxation from that which previously existed.
The Company now has 30 days to enter into the license agreement for Midas and establish the appropriate corporate structure for holding that license.
Nicholas Gay, CEO of Taghmen Energy Plc commented:
We are delighted to be awarded this asset in a highly prospective region, which complements our existing assets in Guatemala. Colombia offers tremendous potential, and is becoming increasingly accessible to independents as it seeks to encourage the search for new reserves, leading to highly attractive license terms."
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