ANH Signs 5 Contracts Worth US$4.8mn

Colombia's hydrocarbons regulator ANH signed two E&P contracts and three technical evaluation agreements (TEAs) in March that require a total investment of roughly US$4.8mn, ANH said in a statement.

ANH signed E&P contracts with US oil company Harken (NYSE: HEC) and local oil company Competrol for the Llanos basin's Los Sauces and Chicuaco blocks respectively.

Harken will explore the 25,000ha Los Sauces block during the next five years and invest US$4.01mn in the first phase.

Competrol has a four-year exploration plan for the 8,000ha Chicuaco block and will invest US$199,000 in its first phase.

ANH has signed seven E&P contracts this year including these two and aims to sign 30 E&P contracts by year-end, the statement said.

Eight other E&P contracts have already been approved by ANH and have only to be signed.

ANH also signed three TEAs with state oil company Ecopetrol, Russian oil company Lukoil (LSE: LKOD) and Canadian oil and gas exploration company Petrobank Energy's (TSX: PBG) Colombian subsidiary Petrominerales, the statement said.

Ecopetrol's TEA is for the Carioca block located in the Guajira basin. Ecopetrol has 10 months to evaluate the 209,000ha block, with planned investment of some US$180,000.

Lukoil signed a TEA for the Guaicáramo block in the Llanos basin, which covers roughly 23,000ha. The company has one year to evaluate the block and will invest US$120,000.

Finally, the TEA signed by Petrominerales corresponds to the Guatiquía block also in the Llanos basin. The 158,000ha block will be evaluated over the course of nine months by the company, which will invest US$300,000 in the work program.

ANH has signed four TEAs this year and has already approved six others.

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