The purchase includes Avante Colombia’s Colombian branch. Avante holds interests in oil fields covering 11,535 acres in the Catatumbo region in northeast Colombia.
Avante Colombia currently has a 50% participation interest and is the operator of the Rio de Oro and Puerto Barco production contracts with Ecopetrol in the Catatumbo area, under an operating joint venture with Vetra Exploracion y Produccion.
Independent engineering reports on behalf of Avante have estimated a total resource potential of approximately 1.4 million barrels of oil. Under the terms of the stock purchase agreement, La Cortez and Avante have also agreed to enter into a joint venture to develop further exploration opportunities in Colombia.
Andres Gutierrez, president and CEO of La Cortez, said: “We are very pleased to have concluded this transaction. We have already commenced the execution of our plans to continue the development of the Avante Colombia assets. We are very enthusiastic about the potential of these blocks.
“In addition, we welcome our new shareholders and board member, and we have great expectations about their contribution in searching for new opportunities as well as in the development of our current assets. We anticipate this transaction will create benefits for all our different stakeholders.”
Macquarie Capital acted as financial advisor to La Cortez in connection with its acquisition of Avante Colombia.
