PentaNova Energy Corp. has announced that it has signed contracts for the civil works and drilling rig to be deployed to the company's 60 076 gross acre Maria Conchita block in the Guajira Basin of Colombia.
Maria Conchita Drilling
PentaNova has signed the contract for the civil works required to begin operations and the drilling rig contract for its natural gas development on the Maria Conchita block, in northern Colombia, where it holds an 80% beneficial working interest. The company plans to complete the civil work in approximately six weeks, and PentaNova will spud the first of two wells to be drilled back-to-back starting in November. The company has also received an offer for the construction and financing of the pipeline required to transport the Maria Conchita gas to market. The strategic location of the block, close to both national gas trunk lines in Colombia, permits the company significant optionality to negotiate the ultimate market for its gas.
The company is pleased to announce that it is finalising a farm-out agreement on its 313 925 gross acre Sinu-9 block in the Lower Magdalena Valley, where it holds an 80% beneficial working interest. The farmee will commit to a US$2.4 million non-refundable deposit and will carry the US$22 million work commitment, in exchange for a 40% beneficial interest in the block. This farm-out permits PentaNova to accelerate development of the low-risk exploratory gas block with 18 000 acres of structural closure mapped with 2D seismic with the Hechizo-1 well on the north end of the structure that tested 10 million standard ft3/d before being abandoned in 1993.
New Credit Facility
PentaNova has received an offer for a senior credit facility with a Tier-1 international financial institution. The Company anticipates entering into a term loan facility for an initial principal amount of approximately US$20 million in the near term. The new credit facility will be used to fund capital programmes in both Argentina and Colombia and complete the Argentine acquisition commitments made under the Patagonia Oil Corp. acquisition.
PentaNova has taken full control of the operations of Alianza Petrolera S.A., as part of the Patgonia Oil Corp. acquisition previously announced in the Company´s press releases dated August 9, July 24, and May 3, 2017. The Company has established its office in Buenos Aires and consolidated its administrative and operating team in-country.
Through the acquisition of Alianza, the Company acquired a 29% working interest in the Llancanelo heavy oil block, located in the Neuquén basin, in partnership with Argentine state oil company YPF and an 18% fully carried working interest in the Mariposa producing gas block located in the San Jorge basin. PentaNova also acquired an additional 10% working interest in Llancanelo for a total of 39% working interest and is actively engaged with YPF in technical discussions regarding the optimal manner to proceed with development of heavy oil resources on the block.
Through its interest in the Mariposa gas production concession, the Company receives 18% of the gas and condensate sales, while the operator covers 100% of the operating and capital expenditure commitments. In August 2017, this 18% represented net production of 921 562.00 m3 of gas, generating over US$200 000 in revenue to PentaNova, with no expenditures on the block.
Additionally, the Company, through Allianza, realized net WI sales of crude oil in the month of August of 11 285 bbls associated with the 29% working interest in the Llancanelo block, resulting in revenues to PentaNova of US$566 000.
PentaNova is completing the operational review of the KM8 project, where it has a 100% operating interest, including a full environmental baseline study. Planning is advancing well for the full reactivation of the field which will include workovers, and a drilling programme.
PentaNova is engaged in discussions with a number of prominent service companies in Argentina on options to accelerate the work programs in the country.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22092017/pentanova-energy-corp-announces-operational-advances-in-colombia-and-argentina/