Colombia: Pacific Rubiales takes Portofino block reins

July 24, 2012

Pacific Rubiales Energy Corp., Toronto, will operate and acquire a 40% participating interest in the Portofino heavy oil exploration block in the Caguan-Putumayo basin of southern Colombia.

The 1,047 sq km block is in the northeastern part of the basin on trend with giant Rubiales-Quifa and Castilla-Chichemene fields and the developing Capella field. The block has one prospect with a midrange resource potential of 140 million bbl and as many as four other leads with 160 million bbl.

Pacific Rubiales will pay $23.5 million to Petrolera Monterrico SA for the 40% interest plus a $2.2 million carry of Petromont’s obligations related to an approved exploratory work program. A further $45 million carry obligation to finance certain production facilities and other activities required for development is to be recovered out of production proceeds.

Pacific Rubiales will pay Canacol Energy Ltd., Calgary, $3.7 million to assume operatorship of the block. Operatorship is to be transferred after the drilling of the next four wells.