Frontera adds two blocks to Colombian exploration acreage
Frontera Energy expects to sign definitive award documentation later this month after being awarded the VIM-22 block in addition to the LLA-99 block which was previously announced on June 27 under Colombia’s Agencia Nacional de Hidrocarburos bid round.
Frontera Energy Corp., Toronto, expects to sign definitive award documentation later this month after being awarded the VIM-22 block in addition to the LLA-99 block which was previously announced on June 27 under Colombia’s Agencia Nacional de Hidrocarburos (ANH) bid round.
The VIM-22 block covers 412,330 acres and the LLA-99 block covers 134,900 acres. Frontera will operate and hold 100% interest in each block. GeoPark Ltd. held right of first refusal for the acquisition of the VIM-22 block.
Block VIM-22 is adjacent to and on trend with the company’s Guama block in Colombia’s Lower Magdalena Valley region. The company has identified multiple play types on the existing 3D seismic on the block and existing infrastructure on the Guama block would result in reduced time from exploration success to commercial production.
The company has identified prospects targeting oil, natural gas, and natural gas liquids. Under the award’s terms, the company is committed to undertaking a 50 sq km 3D seismic survey and to drilling three exploration wells over the next 3 years. The first exploration well is expected to be drilled in 2021.
As previously noted, the Llanos-99 block is on trend with many producing fields that produce medium-to-light oil from the C-5 and C-7 zones within the Carbonera formation as part of the Llanos basin in Colombia.
Frontera has identified two prospective locations on the block.
Under the award’s terms, the company is committed to undertaking a 61 sq km 3D seismic survey and one exploration well in the 3 years. The company plans to drill the exploration well in 2021.
“We are very pleased with the results of the first ANH bid round in 2019 having secured the largest onshore block, of those awarded, in terms of acreage that is near existing infrastructure in a very prolific but underdeveloped region in Colombia with VIM-22. This strategic acreage sits in close proximity to our existing natural gas production and infrastructure on the La Creciente block and in close proximity to our exploration projects on the VIM-1 and Guama blocks. The Llanos-99 block is a typical medium and light oil block in the Llanos basin,” said Richard Herbert, Frontera chief executive officer.
The next bid round by the ANH is expected to begin in August.