Business
Rosa Blanca Block 50% farm out
Rosa Blanca Block 50% farm out.
About this update from Sunda Energy Plc
[{"type":"text","content":"\n \n\n\n\n\n10 August 2007\nGold Oil plc Farms Out 50% interest in new Rosa Blanca Block onshore\nColombia\nGold Oil Plc (\"Gold\") is pleased to announce that it has concluded\nfarm-out arrangements with Osage Exploration and Development Inc.,\n(\"Osage\") covering the 45,000 hectare Rosa Blanca block in the\nnorthern part of the Middle Magdalena Basin, onshore Colombia (\"Rosa\nBlanca Block\") for which Gold was awarded a licence as announced on 5\nJune 2007. The Rosa Blanca Block is surrounded by the nearby oil\nproducing fields of Cristalina, Santa Lucia, Tisquirania, Totumal,\nBaturama and the South Bolivar Block.\n\nUnder the arrangements concluded with Osage over the Rosa Blanca\nBlock, Osage will acquire a 50% interest by carrying Gold and Gold's\nlocal partner, Empesa Petrolera de Servicios y Asesorias S.A.\n(\"Empesa\") through a first exploration well to a target depth of\n5,000 feet and up to thirty days of any testing operations, budgeted\nat $1.2 million. (\"Farm-Out Expenditures\"). The costs of all\nguarantees payable ($1.2 million) to Agencia National de\nHydrocarburos (\"ANH\"), the Colombian National Hydrocarbons Agency,\nare included in the Farm-Out Expenditures. Osage will reimburse to\nGold $144,000 already incurred by Gold under the guarantee to ANH.\n\nFollowing completion of the agreed Farm-Out Expenditures Gold will\nretain a forty percent (40%) working interest in the Rosa Blanca\nBlock. Should the exploration well be successful, Empesa has a 10%\nworking interest and has to repay its share of the Farm-Out\nExpenditures, out of Empesa's share of future production to Gold.\nGold has no liability to reimburse Osage.\n\nThe Environmental Impact Assessment has commenced and the drilling\nrig is being sources at present that could allow the well to be\nspudded before the end of the year.\n\nCommenting from South America on these developments, Gary Moore,\nManaging Director of the Company said, \"Following the award on June\n5th 2007 of the Rosa Blanca Block, (and signature of the Licence on\nJuly 3rd 2007) several companies approached the Company with a view\nto farming into the block. Although Gold did not seek partners for\nthis block we were very impressed with Osage and the deal they\noffered. Additionally we believe that it is advantageous for Gold to\nwork with a partner who has significant experienc...