Business
Colombian Licence Award
Colombian Licence Award.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n Gold Oil PLC\n05 June 2007\n\n\n\nFOR IMMEDIATE RELEASE 5 June 2007\n\n Gold Oil plc\n\n Award of Rosa Blanca licence block onshore Colombia\n\n\nHighlights\n\n •Award of 90% Interest in 45,000 Ha block, Rosa Blanca\n\n •Drill to ready, subject to EIA\n\nGold Oil Plc ('Gold') is pleased to announce that it has received confirmation\nfrom Agencia National de Hydrocarburos ('ANH'), the Colombian National\nHydrocarbons Agency, that Gold has qualified as operator and licence holder for\nthe Rosa Blanca block ('Rosa Blanca Block') in the northern part of the Middle\nMagdalena Basin, onshore Colombia.\n\nThe Rosa Blanca Block covers an area of approximately 45,000 hectares ('Ha') and\nis surrounded by the nearby oil producing fields of Cristalina, Santa Lucia,\nTisquirania, Totumal, Baturama and the South Bolivar Block.\n\nThe most attractive oil play within the Rosa Blanca Block has a geological\nstructural trap of a faulted anticline of 300 feet of vertical closure of 12,699\nHa, between 3,900 and 4,200 feet which Gold has interpreted to have the same\ngeological signature of the nearby Buturama oil field. There are 232 kms of 2D\nseismic available to Gold over this prospect which ties into the nearby Norean 1\nwell. Gold believes that there are up to three other plays on this block.\n\nThe petroleum system within the Rosa Blanca Block has been proved in nearby oil\nwells and fields which reduces the geological risk significantly. Gold believes\nthat the prescence of the fractured reservoir zones within the reservoir rock is\nthe main operational risk. Gold's clear objective is to find another Buturama\noil field, which by analogy, could give reserves of up to 30 MM STB and initial\nproduction rates of 1,200 BOPD of 35 API gravity oil.\n\nThe main prospect is ready to drill to a depth of 5,000 feet with an expected\ndrilling budget of $1.6 - $3.0MM, depending on testing and rig rates. Gold has\n90% of the licence but pays 100% of the costs. Gold's 10% partner is a local\ncontractor who has extensive experience working in the Middle Magdalena Basin.\n\nUnder the terms of the agreement with our partner, he is carried through the\ndrilling and testing of the first well, with the cost of the carry repaid to\nGold out of future production revenues. Under the licence terms with ANH a\nroyalty of 8% is payable and corporation tax is...