Mr. Luciano Biondi reports
PETROMAGDALENA ANNOUNCES FARM-IN WITH INTEROIL
PetroMagdalena Energy Corp. has entered into a binding letter of intent with Interoil Colombia E&P Inc. in respect of a 50-per-cent participation to farm in to the LLA-47 block, located in the Llanos basin just south and on trend with the company's main Cubiro block and other producing blocks in the basin.
The LLA-47 is located in the prolific Llanos basin and covers an area of 447 square kilometres. Interoil owns a 100-per-cent working interest on the block and is the current operator. The company has agreed to undertake a $30-million work program commitment in the three years of phase 1 of the E&P contract with the ANH (National Hydrocarbon Agency). This transaction is subject to approval by the ANH. In addition, the company shall pay a $2-million signing fee upon receipt of ANH approval.
Luciano Biondi, chief executive officer of the company, stated: "We are looking forward to working with InterOil and expanding the co-operative relationship developed over the last few years, as we have adjacent operations with their Altair block on the southern boundary of Cubiro. This allows us to leverage our in-depth Cubiro experience to an exciting new block with the same geological and surface characteristics and logistical aspects. With the existing 2-D seismic indicating the existence of several exploration leads similar to those on the Cubiro block, that will be matured with 3-D seismic as the first activity prior to exploration drilling, we are pleased to have added a very prospective Llanos exploration program to our portfolio."
We seek Safe Harbor.