Llanos move for US player
Houston American Energy has acquired two new concessions in Colombia's Llanos basin, it said today.
The company said it will participate for a 12.5% working Interest in both concessions. The concession areas total over 180,000 acres and require a royalty regime paid to the government agency of 5% to 20% depending on volumes of oil production and an additional 6% to 10% per concession when 5 million barrels of oil have been produced on that concession. These numbers can vary based on oil pricing.
Both concession contracts require aggressive exploration progress. The initial plans are to acquire about 88 square miles of 3D seismic data within the next six months and to start drilling on each concession within the next year.