2009-08-19-2007-07-01

WI

Pacific Stratus Energy Ltd., Toronto, (Toronto: PSE) plans to acquire a 26.25% interest in the Quifa association contract in the Llanos Basin of Colombia. The contract consists of 234 square kilometers in the Puerto López area within the Vichada and Meta departments. Pacific has entered an agreement with Consolidated AGX Resources Corp., Vancouver, (Toronto Venture: CSX) to fund all of AGX's costs and expenses with the remaining exploration phases under the Quifa agreement (approximately US$5.3 million) including seismic acquisition/processing and drilling three exploratory wells. AGX will transport a portion of its Rubiales production to Pacific's production facilities at Guaduas to produce a blend suitable for pipeline transport and sale, and the parties will act jointly in future bidding rounds in Colombia for heavy-crude projects in the Llanos Basin. Pacific chief executive Jose Francisco Arata says, "This agreement with AGX gives us an important entry into the heavy-crude areas of Colombia with an experienced producer, and allows us to diversify our property portfolio. It also gives us an important partner as we seek to expand our operations in Colombia."