Suroco Energy has acquired the option from Thorneloe Energy Sucursal Colombia pursuant to an agreement dated 18 December 2009.
Exercising this option on Block 33, where Suroco is expected to drill two exploration wells in the first half of 2011, adds materially to the near-term activity in the company’s exploration portfolio.
The company has structured its entry based upon a seismic option and after fully evaluating the new 3D seismic data.
The new 3D seismic data has revealed the presence of several exploration prospects which, assuming acquisition of the interest is completed, under the terms of the agreement, Suroco Energy will be able to participate in drilling three exploration wells for no more than at a cost of $500,000 per well, except where the three exploration wells are not drilled in sequence, in which case the Suroco Energy will be responsible for 28% of any additional mobilization or standby costs.
Completion of the acquisition of the interest by Suroco Energy is subject to a number of conditions, including TSX Venture Exchange acceptance.
