Canacol Corporation to Operate in the Arenales de Santa Cruz Area
The Colombian Petroleum Trade Union issued a resolution allowing Canacol Corporation to operate in the Arenales de Santa Cruz Area.
Details of the Resolution:
- The Colombian Petroleum Trade Union decided to approve the hydrocarbons contract allowing Canacol Corporation to explore Arenales de Santa Cruz.
- The contract is for a 5-year term, with the option for a 3-year extension.
- The area includes the Bajo de la Hera, Ojos de Agua, and Nogal prospects.
- Canacol Corporation has committed to drilling at least 5 wells in the first two years of its contract.
- Canacol added a bonus of US$15 million as consideration for the contract.
Canacol Corporation is a Canadian-based company that has been operating in Colombia since 2004. The company currently operates 13 producing blocks in the country. This new contract will add to Canacol’s presence in the region, and expand the possibilities of the corporation’s oil and gas exploration.
The Arenales de Santa Cruz area is known to contain oil and gas reserves, and it is believed to be a great opportunity for the company to expand its operations. Canacol’s investment in the exploration of Arenales de Santa Cruz is expected to have a positive economic impact on the region.
The diputados have approved the resolution, and Canacol looks to begin operations soon in the Arenales de Santa Cruz area.
