Colombia: Heupecol closes $920m deal
Hupecol sells Caracara stake for $920m
Colombian oil company Hupecol has sold its 70% stake in the Caracara Block to Madrid-based Cepsa for $920 million.
The planned acquisition falls under Cepsa's $1.8 billion, 2008-12 strategic plan to increase reserves and production.
Cepsa currently holds eight E&P contracts in Colombia, where company production reached 253,000 barrels last year.
The Caracara Block covers 47,200 hectares in the Los Llanos basin. OUtput from the block currently stands at more than 20,000 barrels per day.
Colombia's state oil company Ecopetrol holds a 30% stake in the block.
The 70% stake went for $920 million, according to a statement by Hupecol shareholder Houston American Energy
Houston American has a 1.6% stake in Hupecol Caracara and will receive its interest in the net proceeds of the sale after provision for Colombian taxes and after deduction of all fees and expenses of the sale, a BNamericas report said.
The purchase and sales agreement was signed in March with Hupecol.
Houston American also reported said hydrocarbons regulator ANH had awarded the La Cuerva contract to Hupecol.
The Colombian company will spend $8 million on seismic work and plans to spud two wells on the block.