ANH Approval of Farm-out Agreement (5478R)
04 November 2011 - 3:45PM
UK Regulatory
TIDMPELE
RNS Number : 5478R
Petrolatina Energy PLC
04 November 2011
FOR IMMEDIATE RELEASE
4 November 2011
PetroLatina Energy Plc
("PetroLatina" or the "Company")
ANH Approval of the Farm-out Agreement in respect of the
Company's VMM-28 Exploration Block
PetroLatina (AIM: PELE), the independent oil and gas
exploration, development and production company focused on Latin
America, is pleased to announce that it has now received approval
from the Agencia Nacional de Hidrocarburos ("ANH"), for the
farm-out agreement entered into with Shell Exploration and
Production Colombia GmbH ("Shell E&P Colombia"), an affiliate
of the Royal Dutch Shell group of companies, in respect of the
Company's VMM-28 exploration block, the details of which were
announced on 15 July 2011.
Under the terms of the agreement, Shell E&P Colombia will
acquire an 85 per cent. participating interest in the Company's
VMM-28 Exploration and Production contract. The VMM-28 block is
currently wholly owned and operated by Petroleos del Norte S.A.,
PetroLatina's Colombian operating subsidiary.
In accordance with the terms of the farm-out agreement, Shell
E&P Colombia agreed to pay a total fee of US$15 million in cash
to PetroLatina and the remaining US$12 million is expected to be
received shortly. Shell E&P Colombia will be appointed as
operator of the contract and will take responsibility for the work
programme.
The Company intends to use the proceeds from the farm-out
agreement to assist with the part funding of its planned ongoing
drilling programme and development commitments in respect of the
remainder of its Colombian asset portfolio and for general working
capital purposes.
Luc Gerard, Executive Chairman of PetroLatina, commented:
"I am extremely pleased that ANH approval has now been obtained
and that we are able to formally welcome Shell E&P Colombia as
our partner in respect of the VMM-28 contract. The farm-out
agreement provides us with exposure to exploration activity on the
VMM-28 block, including the technology and expertise of Shell,
whilst enabling us to focus our resources on the development of the
other promising assets in our Colombian portfolio, including the
Putumayo-4 E&P block. "
Enquiries:
PetroLatina Energy Plc
Juan Carlos Rodriguez, Chief Executive Officer Tel: +57 1627 8435
Pawan Sharma, Executive Vice President - Corporate Tel: +44 (0)20 7766
Affairs & CFO 0081
Strand Hanson Limited
Simon Raggett / Matthew Chandler Tel: +44 (0)20 7409
3494
Financial Dynamics
Ben Brewerton / Chris Welsh Tel: +44 (0)20 7831
3113
This information is provided by RNS
The company news service from the London Stock Exchange
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