Colombia
Onshore Colombia
Putumayo Basin Nancy Burdine Maxine
Project Summary:
Gold farmed into the Nancy-Burdine-Maxine (NBM) oil and gas field in South West Colombia in May 2006and acquired a 40% beneficial interest in the Licence.. Since then the Company has increased its equity to 58.08%. The Company is applying to be on the Licence.
The NBM fields were discovered by Texaco and put on stream in 1976. The Nancy 1 well produced initially at 1400 bopd and declined to 230 bopd by 1978 when pumping was added boosting production to 670 bopd. The other fields had a similar history. Argosy International then assumed control and in 1995 the fields were abandoned for economic reasons with Nancy 1 producing at 200 bopd with no water. The fields were returned to Ecopetrol who licensed them to Union Temporal in 2003 as part of the "marginal field" sell off being pursued by Ecopetrol at that time.
The term of the Licence is to exploit a known developed oil field. The royalty is 20% before Ecopetrol takes a 41% share with no contribution to either capital or operating costs.
|
|
The Union Temporal is made up of several oil and service companies, all of whom have extensive experience in Colombia working for major oil and service companies.
The deal allowed the Company an easy low cost entry into Colombia, but not without geological and country risk.
In April 2008 a geological and geophysical report was commissioned and completed by one of the Union Temporal partners (Bioss). This report concluded that there were many oil zones in the Nancy and Burdine fields that had not been perforated and that areas of the field were not being effectively drained.
The Company took the view that these fields had the potential to deliver more oil provided a proactive approach was taken to the development. The Company commissioned an independent reservoir engineering study by Nutech Energy out of Houston and subsequently an independent reserve report by Morning Star also out of Houston. Based on that study the Company, on July 2, 2008, bought out one of the 18.05% partners within the Union Temporal, Invepetrol, thus resulting in the Company taking control and a total working interest in the NBM project of 58.08%.
In May, 2009 at a Nancy-Burdine-Maxine Operating Committee meeting it was proposed by the Company that Invepetrol should be appointed as Project Manager. This was agreed to by the remaining partners. The outgoing Project Manager is now in the middle of the handover process to the Company’ Project Manager to ensure a smooth transfer of operations. On June 1st Gold formally took over the management of this project.
It is the Company’s intention to pursue a very aggressive development programme on the Nancy, Burdine and Maxine fields.
The Company has opened an office in Bogota as we have reached the point where we can no longer manage Colombia from outside the country. We also have recently hired an experienced Colombian Petroleum Engineer as Country Manager to take control of the NBM operation and manage the development of our other assets in Colombia.
Project Type: Production with exploration upside
Partners:
- Gold Oil Plc (58.05%),
- Termotecnica (18.05%)
- ISP (18.05%)
- Bioss (2.84%)
- VHF (3%)
Project Operator: Gold Oil
Future Obligatory Commitments: None
|
