Exploration due on Trinidad land blocks

Two Canadian independents will prospect on 214,000 acres in the underexplored Central Range in central Trinidad.

Jan 23rd, 2008

By OGJ editors
HOUSTON, Jan. 23 -- Two Canadian independents will prospect on 214,000 acres in the underexplored Central Range in central Trinidad.

Petro Andina Resources Inc., Calgary, plans to acquire a 50% working interest from Voyager Energy Ltd., a private Calgary firm, and become operator of the onshore Central Range Shallow and Central Range Deep blocks. Drilling is likely to begin in 2009.

The blocks are subject to production-sharing contracts, and the deal is subject to approval by the Trinidad and Tobago government. The government awarded the blocks to Voyager on Jan. 10.

Petroleum Co. of Trinidad & Tobago has the right to participate for a 35% working interest in any development on the shallow block and for a 20% working interest in any development on the deep block.

The PSCs provide for an initial 4-year exploration phase with 2-year extension options.

The PSCs apply to hydrocarbon rights above and below 4,500 ft true vertical depth, respectively. They have work obligations of 100 line-km of 2D seismic, 250 sq km of 3D seismic, one well to at least 12,000 ft, and three wells to 4,500 ft or less.

Petro Andina and Voyager will each pay a $2.75 million signature bonus upon final government approval, and Petro Andina will carry the first $5 million of Voyager's seismic acquisition costs in the exploration phase.

Petro Andina estimated its 2008 capital spending in Trinidad and Tobago will total $15 million, mostly for seismic surveying.

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