Project Profile
Location: Upper Magdalena Basin, Colombia
Start-up Year: -
The COR 4 and COR 12 Exploration and Production (E&P) contracts are located adjacent to the existing COR 39 and COR 11 E&P contracts and are prospective for both shallow conventional oil exploration targets within the Guadalupe sandstone reservoirs, and deeper non-conventional oil exploration targets within the thick Cretaceous Villeta - La Luna shale.
Pursuant to the terms of the agreements executed in respect of these transactions, Canacol Colombia acquired a right to an 80% interest in each of the COR 4 and COR 12 contracts from Rio Bravo Commercial Enterprises S.A. and Petromont Colombia S.A. respectively, in consideration for (i) a total payment of US$15 million (US$7.5 million for each block) payable entirely in newly issued common shares of the Corporation, (ii) agreeing to fund the vendors’ remaining 20% share of exploration commitments in the first two phases (unified into a single phase in the case of COR 12) of each of the contracts, (iii) granting a 3% overriding royalty to the applicable vendor for each block, and (iv) agreeing to the payment of a one-time bonus totalling US$5million in the event that any one of the two blocks is subsequently successfully farmed out by Canacol Colombia to a third party.
Operators:
Canacol Energy: Operator with 100% interest