Colombia
Onshore Colombia
Middle Magdalena Basin - Rosa Blanca
On September 20, 2006, the Company applied for an exploration Licence covering 45,000 Ha of acreage in the upper part of the Middle Magdalena Basin. The block, known as Rosa Blanca, is surrounded by the nearby oil producing fields of Cristalina, Santa Lucia, Tisquirania, Totumal, Baturama and the South Bolivar Block.
The petroleum system within the Rosa Blanca Block has been proved in nearby oil wells and fields which reduces the geological risk significantly. The Company believes that the presence of the fractured reservoir zones within the reservoir rock is the main operational risk.
The Company has entered into an agreement with Montecz S.A a Colombian service company which specializes in pipeline and tank construction and has a number of minority participations in E&P contracts in the Colombia. The agreement specifies that Gold and its partner Empesa will be carried for one well (plus testing) in the third exploration period. Montecz earns a 72%interest, Gold retains a 25% interest and Empesa 3% interest in the Rosa Blanca block. Once Montecz has completed the process of establishing the mandatory escrow account with the ANH, it is intended that Gold and Montecz will enter into a joint operating agreement.
The E&P contract entered into its third phase of exploration, as a result of the evaluation and interpretation of 62 km. of 2D seismic lines acquired late in 2009. The environmental licence for the block is already approved and the specific environmental approvals for the drilling of the well RB-2 are in the course of being prepared. The drilling schedule contemplates operations to commence by August / September 2010, with the well testing contemplated in October
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