Ecuador

Dec. 13, 2006
International Sovereign Energy Corp., Vancouver, BC, said state Petroecuador modified the Charapa Concession Agreement and its work program that governs the Charapa Block in the northern Oriente basin.

By OGJ editors

HOUSTON, Dec. 13 -- International Sovereign Energy Corp., Vancouver, BC, said state Petroecuador modified the Charapa Concession Agreement and its work program that governs the Charapa Block in the northern Oriente basin.

Charapa, 15 km northwest of giant Lago Agrio field, has produced 1.7 million bbl of oil from Lower Cretaceous Hollin sandstone and Napo formation Caliza B fractured limestones. Both formations have further recovery potential.

The block contains the untested Conejo, Charapa Southwest, and Halcon exploratory structures. A 50 sq km 3D seismic survey is planned at Charapa Southwest and Halcon, and a vertical well is planned at Conejo.

The revised work program totals $10 million, and the production split with Petroecuador is 50-50.

International Sovereign has an option to acquire the stock of a private company that through a subsidiary is the contracting party to the Charapa contract or to have assigned to International Sovereign 100% of the subsidiary's stock subject to a 1.5% override.