PetroMagdalena To Farm In To Interoil Colombian Block

To farm in for 50% participation in 447-square-kilometer LLA-47 block in Llanos Basin in Colombia.

PetroMagdalena Energy Corp., Toronto, (Toronto Venture: PMD) plans to farm in for a 50% participation in the LLA-47 block in the Llanos Basin in Colombia from Interoil Colombia E&P Inc., a subsidiary of Interoil Exploration and Production ASA, Oslo, (Oslo: IOX) in exchange for funding a US$30-million work program.

The LLA-47 covers an area of 447 square kilometers. Interoil owns 100% working interest on the block and is operator. PetroMagdalena has committed the funds for three years of Phase 1 of the E&P contract with the ANH. In addition, PetroMagdalena shall pay a $2 million signing fee upon receipt of ANH approval.

The LLA-47 block is just south and on trend with the PetroMagdalena’s main Cubiro block and other producing blocks in the basin.

PetroMagdalena chief executive Luciano Biondi says, “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.”