GP Energy Inks Farm-in Agreements with Comahue
Canadian oil company Gold Point Energy (TSX: GPE) has signed two farm-in agreements with Argentine oil company Petrolera del Comahue (PDC) for the General Roca and Blanco de los Olivios blocks in Rio Negro province's Neuquen basin, Gold Point said in a statement.
The first agreement provides for a US$400,000 workover program in the General Roca block's Flor de Roca field that would earn Gold Point a 12.5% interest in the field. The producing field remains separate from the rest of the exploratory block under the first agreement.
Current production from the GR-X-6 and AN-X-1 wells in the Flor de Roca field total some 70b/d, although the workover program could put production within the 100-300b/d range, GPE's president and CEO Jack Steinhauser told BNamericas.
The workover program will start immediately and is expected to wrap up by mid-December, Steinhauser said.
The second agreement calls for a US$5.7mn work program to earn GPE a 50% interest in both blocks.
The first stage of the work program is scheduled for 1Q07 and includes reprocessing and reinterpretation of 3D seismic plus conducting one workover and one horizontal production well.
The second stage of the program is slated for 2Q07 and 3Q07 and involves drilling three vertical exploration wells based on the seismic reinterpretation.
The company will finance programs in the two farm-in agreements from US$6.2mn it raised last year, with the balance going to US projects.
GPE also entered into a farm-in agreement in early October with the Argentine units of US oil firm Apco and Canada's Antrim to earn a 25% interest in the Yacimiento Norte 1/B block in Salta province.
Under the farm-in agreement, GPE committed to pay 50% of a Cdn$1mn (US$878,000) 3D seismic program and Cdn$2mn test well to earn a 25% working interest in the Martinez del Tineo Oeste prospect.
Drilling of the Martinez del Tineo Oeste prospect is scheduled for 2Q07 or 3Q07, Steinhauser said.
Following drilling of the prospect, GPE will have the option to earn a 25% interest in the entire Yacimiento Norte 1/B block by funding 50% of 3D seismic acquisition work and two exploratory wells.
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