Project Profile
Location: Lower Magdalena Basin, Colombia
Reserves: Probable gas reserves of 95 bcf (possible reserves of 78 bcf)
Depth: 10,360 feet measured depth (Trombon-1)
Gas production: 26 mmcf per day of dry gas (Trombon-1 in October 2016)
Area: 60,002 acres
Esperanza Block, located in Colombia’s Lower Magdalena Basin with an area of 60,002 acres. There has been a significant gas discovery in the Nelson field. In Q3 2012, Shona completed acquisition and processing of 103 square kilometres of 3-D seismic and 14 kilometres of 2-D seismic on the Esperanza Block. In June 2012, Shona completed its fourth seismic program with the acquisition and processing of 103 sq km of 3D seismic and 14 line-km of 2D seismic on Esperanza. A consulting reserves report in January 2012 assigned Esperanza proved and probable gas reserves of 95 bcf and possible reserves of 78 bcf. Shona has two contracts in place for the sale of gas produced at Esperanza, representing a total of up to 24 million cubic feet per day (MMCFPD) – 14 MMCFPD of which is firm:
The Larger Contract: Under the terms of the larger contract, which has a ten year term effective January 1, 2012, Shona will sell firm gas volumes of 11.0 MMCFPD for 2012 and 2013, increasing to 12.5 MMCFPD from January 2014 until the remainder of the term. The buyer has options, during the term of the contract, to purchase additional volumes of firm gas.
The Smaller Contract: Under the terms of the smaller contract, Shona will sell a firm volume of 3 MMCFPD over a seven year term, during which the buyer can elect to purchase additional interruptible volumes.
Operators:
Canacol Energy (previously held by Shona Energy Company): Operator with 100% interest