(Frontera, 16.Jul.2019) — Frontera Energy Corporation announces the award of the VIM-22 block in addition to LLA-99 block which was previously announced on June 27, 2019 under the successful Agencia Nacional de Hidrocarburos (“ANH”) bid round. Definitive award documentation will be entered into later this month.
|Block||Gross Acres||Operator||Working Interest||Base Royalty plus X-Factor|
|VIM-22||412,330||Frontera||100%||8% + 1%|
|LLA-99||134,900||Frontera||100%||8% + 1%|
Block VIM-22 is adjacent to and on trend with the Company’s Guama block in the Lower Magdalena Valley region of Colombia. The Company has identified multiple play types on the existing 3D seismic on the block and existing infrastructure on the Guama block would result in reduced time from exploration success to commercial production. The Company has identified prospects targeting oil, natural gas and natural gas liquids with plans to start the environmental permitting process as soon as practicable for the first exploration well which is targeted to be drilled in 2021. Under the terms of the award of the block the Company is committed to undertaking a 50 km2 3D seismic survey and drill three exploration wells over the next three years.
As previously announced, the Llanos-99 block is on trend with a number of producing fields that produce medium to light oil from the C-5 and C-7 zones within the Carbonera formation as part of the prolific Llanos basin in Colombia. The Company has preliminarily identified two prospective locations on the block with plans to start the environmental permitting process for the required 3D seismic program as soon as practicable with the goal of an exploration well to be drilled in 2021. Under the terms of the award of the block the Company is committed to undertaking a 61 km2 3D seismic survey and one exploration well in the next three years.
“We are very pleased with the results of the first ANH bid round in 2019 having secured the largest onshore block, of those awarded, in terms of acreage that is near existing infrastructure in a very prolific but underdeveloped region in Colombia with VIM-22. This strategic acreage sits in close proximity to our existing natural gas production and infrastructure on the La Creciente block and in close proximity to our exploration projects on the VIM-1 and Guama blocks. The Llanos-99 block is a typical medium and light oil block in the Llanos basin, which is the core area of Frontera’s portfolio and where we have had a significant amount of exploration success in the past. Frontera looks forward to the next bid round by the ANH that is expected to commence in August 2019.”— Richard Herbert, Chief Executive Officer of Frontera