Business
Interest in Azar Block, Colombia
Interest in Azar Block, Colombia.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \n\n\n\n\n29th February 2008\n Gold Oil acquires 20% interest in onshore Azar Block, Colombia\n (\"Gold\" or \"The Company\")\nGold Oil Plc (AIM: GOO), the AIM-listed oil and gas exploration and\nproduction company focused on opportunities in Latin America, is\npleased to announce that it has concluded a Sale and Purchase\nAgreement (\"SPA\") for a 20% working interest in the Azar Block in the\nPutumayo Basin, Colombia. The consideration is payable over several\nperiods and amounts to approximately $4 million as follows: $0.4\nmillion payable on signature, $1.6 million by 5 March 2008, $1.2\nmillion by 5 May 2008 (or earlier if Colombia's hydrocarbons agency\nANH accepts the assignment of the offshore affiliate onto the Azar\nlicence) and, within 5 days of the affiliate being accepted onto the\nAzar licence, an additional $0.8 million.\n\nThe Azar Block is located to the northeast of the Company's existing\nNancy, Burdine and Maxine oil fields and immediately to the east of\nthe Guayoyaco Block in which the Juanambu discovery well was drilled\nin November 2007 with a flow rate of 1,410 bopd. The Guayoyaco Block\nis operated by Gran Tierra Energy (TSX: GTE), who is also the\noperator and 40% interest holder in the Azar Block.\n\nCommenting, Gary Moore, chief executive of Gold Oil, said, \"We are\ndelighted to conclude this SPA and look forward to working with Gran\nTierra. \"This agreement represents a resounding endorsement of our\nclear strategy to appraise and develop assets and build up the\ncapital value of the Company.\"\n\nUnder the arrangements concluded in the SPA, the Company is carried\nthrough the current 3D seismic survey and interpretation shot earlier\nthis year and also a well re-entry and work-over planned for early\nMarch this year. The estimated value of the carry is $0.6 million.\n In addition the cost of the first exploration well, planned for\nlater this year, will only cost the Company 10% of the cost of the\nwell, estimated at $1 million, to earn the Company a 20% working\ninterest.\n\nThe licence for the Azar Block was granted by Colombia's hydrocarbons\nagency ANH in October 2006 for an area of 51,630 Ha (or 516.3sq.km).\n The term of the licence is for a period of 24 years and includes a\nroyalty payable to the ANH of between 8% and 25% depending upon\nlevels of production. The oil and gas terms in C...