Your account already exists. Please login first to continue managing your settings.
Sagres Energy Inc. has entered into a definitive farmout agreement on the El Triunfo block with an arm's length third party international oil company with current production in excess of 15,000 barrels of oil per day.
The El Triunfo block is comprised of 25,205 gross acres in the oil-rich Llanos Basin in Colombia and is at an advanced exploration stage with multiple drill-ready prospects and extensive seismic coverage, including 3D seismic, on the main prospect.
As previously announced, Sagres acquired the rights to earn a participating interest in the hydrocarbon E&P agreement, which requires the partners to drill two exploration wells on the block. Sagres has the right to earn an undivided 70% working interest and assume operatorship in the block by paying 100% of the costs relating to the first of the two wells, with the opportunity to earn up to an additional 12.5% interest through the payment of costs related to the second well.
Under the farmout agreement, Sagres has granted a 35% net working interest in the block in exchange for the farmout partner assuming 50% of Sagres' historical and future costs associated with the drilling commitments. The farmout partner also has an option to acquire a further 10% interest in the block from Sagres by paying an additional 20% of the costs associated with the drilling of the first well.