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The first well in the farm-out agreement between Sintana Energy's Colombia unit Patriot Energy Oil & Gas and ExxonMobil at the VMM-37 block in Colombia's Middle Magdalena basin will be spud in June or July 2013, Sintana COO Dave Cherry said in a webcast.
Under the agreement, which was signed last week, ExxonMobil acquired a 70% share in Patriot's unconventional resources in the block, while Patriot retained a 100% interest in conventional resources.
Patriot has already submitted the EIA to hydrocarbons regulator ANH for the first three wells - two vertical and one horizontal - to be spud by ExxonMobil. The three parties will meet at month's end to discuss approval of the farm-out deal.
Phase I of the drilling program, which consists of the three wells, should be completed by March 2014. ExxonMobil's investment in phase I drilling is expected to be US$110mn-120mn, Sintana CEO Doug Manner said in the webcast.
Manner also said they are exploring farm-out deals for other blocks in which they have interests, including the VMM-4 block and conventional resources at VMM-37.