Petro Andina wins four E&P licenses in Colombia
Petro Andina acted under a joint bidding agreement with its partner, Columbus Energy, a wholly owned subsidiary of Remora Energy International, a company already established and active in Colombia, to acquire blocks LLA-16, LLA-20, LLA-29 and LLA-30 in the Llanos Basin. Under the terms of the Mini Round 2008, bidders committed to a minimum work program proscribed for each block and then bid a supplemental work program plus an 'X-Factor' or additional royalty. Petro Andina will be operator of record of the blocks with a 50% working interest. The four blocks cover an area of approximately 495,000 gross acres, and each have exploration periods of six years comprised of two, three-year phases. The first exploration phase will involve the acquisition of 3D seismic data and the drilling of exploration wells by Petro Andina and Columbus. The total net cost to Petro Andina to complete this exploratory work is approximately $46 million. In addition to the work commitments, Petro Andina and Columbus bid an X-factor of 1% to the Colombian National Hydrocarbons Agency.