The company is generating about $2m per month of gross revenue through the sale, with the majority coming from Shona’s Nelson gas field on Esperanza Block in Colombia’s Lower Magdalena Basin.
Including the existing gas reserve base, the company expects it can produce an additional 30 mmcfpd of natural gas, and would finalise sales either through exercise of existing options, or through new opportunities in the Colombian gas market.
Shona will provide a firm volume of 11.0 mmcfpd for 2012 and 2013, and a firm volume of 12.5 mmcfpd from 2014 to 2021 as per the terms of a larger contract by Geoproduction, a subsidiary of Shona that operates the block.
Under the terms of the smaller contract, Shona will sell a firm 3 mmcfpd and an interruptible 2 mmcfpd over a seven year term.
Pending mutual agreement on pricing and terms, both purchasers have options to acquire additional gas volumes.
