To farm into 55% WI in Alicante Block with 38,684 hectares.
Pacific Rubiales Energy Corp., Toronto, (TSX: PEG) reports that its subsidiary, Meta Petroleum, has signed an agreement with Ecopetrol SA, the national oil company of Colombia, to jointly develop the Alicante Block in the Llanos Orientales Basin of Colombia. Ecopetrol will farm out 55% of its working interest rights in the Alicante Block to Pacific Rubiales. The Alicante Block, which is east of the city of Villavicencio, was awarded to Ecopetrol in 2006 by the National Hydrocarbons Agency of Colombia (ANH). Alicante is next to Apiay Block, which is close to existing infrastructure. Working commitments under this agreement include seismic acquisition during the third quarter of 2008 and drilling one exploratory well in the second half of 2009. The block has a total area of 38,684 hectares and is part of the wider strategy that the two companies are executing for the development of heavy oil in Colombia. This agreement requires the formal approval of the ANH. "We are delighted to develop the Alicante Block with Ecopetrol," says Pacific Rubiales Energy chief executive Ronald Patin. "This agreement reinforces our commitment to the development of heavy crude oil potential in the Colombian Llanos." Pacific Rubiales Energy has a current net production of approximately 21,000 barrels of oil equivalent per day, with working interests in the Rubiales, Piriri and Quifa concessions and the Caguan, Dindal, Rio Seco, Puli B, La Creciente, Moriche, Guam a, Arauca, Tacacho and Jagueyes blocks in Colombia and blocks 135, 137 and 138 in Peru.