Page 17 - LatAmOil Week 10 2021

LatAmOil NEWS IN BRIEF LatAmOil

The Royston well will be drilled using Well Ser- agreements, which squarely position the com- international institutional investors pursuant to
vices Rig #60 targeting a total depth of approx- pany for organic growth in a prolific hydro- and in compliance with applicable exemptions
imately 11,500 feet (3,510 metres). The drilling carbon area in Colombia, unlock valuable oil from relevant registration, filing and prospectus
rig is scheduled to move onto location early in production in Argentina and further strengthen requirements, and subject to other applicable
the second quarter of 2021. Interoil’s financial flexibility. We look forward to selling restrictions. The minimum subscription
Drilling Rig Contract: Given our explora- a successful collaboration with our partners SLS amount in the private placement will be NOK
tion success, the Company expects to execute and Quantum Resources as well as Velitec SA.” 10,000. The Private Placement will be exempt
a contract with a Canadian based private com- Drilling of the Mazorca well in the Altair from prospectus requirements in Norway as the
pany to provide state of the art drilling equip- block will commence shortly. As part of the maximum offer size is below EUR 10mn.
ment commencing in late 2021. The contractor agreement, SLS and Quantum Resources will The net proceeds from the Private Placement
will deploy a North American based drilling rig retain a 22% equity interest in the well and cover will be used for capital investments in the well
equipped for us to evaluate the deep targets at 50% of the drilling expense. The cost of the well is farmed-out to SLS and Quantum Resources. The
Royston, Cascadura and Chinook, along with estimated at between $3.0mn (for dry well) and Company decided that the best alternative is to
drilling on our legacy crude oil development $3.3mn (for a successful discovery). raise the necessary funding for the exploration
properties. Pursuant to the current terms of the The well will target multiple objectives along wells through this Private Placement.
drilling contract, Touchstone must utilise the rig its path where the primary exploration target is Interoil, March 04 2021
for a minimum of 120 days per year over an ini- the Gacheta formation (3,000 metres depth),
tial three-year term and is obligated to pay for which is an important producing formation
rig mobilisation costs, which are currently esti- in the Llanos Basin and has shown hydrocar- INVESTMENT
mated to be approximately $1mn. This arrange- bon potential in the Altair Block, specially the
ment, in combination with our current drilling Mizar-1 well, which has produced sweet 20 API PetroRio buys additional
services provider, will give the Company access oil at 337 bpd and Altair-1, which has shown oil
to three drilling rigs capable of drilling to depths but never tested due to mechanical problems interest in Wahoo from Total
of 10,000 feet (3,048 metres) or more on the when casing the well for testing. Interoil esti-
Ortoire block as well as the Company’s legacy oil mates Mazorca’s prospective resources to reach PetroRio has announced the signing of an agree-
development properties. 1.5mn barrels with a 36% Probability of Success ment with Total E&P do Brasil Ltda. for the
Touchstone Exploration, March 05 2021 (PoS). Interoil’s exploration commitment at acquisition of a 28.6% interest in the BM-C-30
Altair will be fulfilled with this new well. Block (Wahoo field). Together with the interest
Interoil signs farm-out and production, 100% of the net oil operating this transaction will bring PetroRio’s interest to
If the well results in commercial discovery in Wahoo acquired from BP in November 2019,
deals in Colombia and income (oil sales after royalties and lifting costs) 64.3% of the concession after the acquisitions are
will be allocated to repay the investments. Once concluded, both subject to conditions precedent.
Argentina and announces investment pay-out is reached, then the net oil formation test carried out in 2010, has produc-
Wahoo, with oil discoveries in 2008 and
operating income will be split as per equity inter-
small private placement est with 78% share to Interoil. tion potential of over 140mn barrels (100% of
Wahoo). The Company has estimated average
Plans in Argentina involve downhole inter-
In Colombia, Interoil has signed a farm-out vention in two wells in MMO plus the refur- initial productivity of over 10,000 bpd per well
agreement with SLS and Quantum Resources for bishing and certification approval of the surface and total production that can exceed 40,000 bpd
the drilling of the remaining committed explor- facilities in LM#3. The gas produced will then in Wahoo, based on the formation test made in
atory well (Mazorca) in the Altair block. This be used to fuel surface facilities (production and the pilot well.
agreement is subject to Interoil’s obtainment treatment equipment) for the re-opening of oil The Wahoo base project covers the drilling of
of the funding required to meet its obligations production from an initial 15 wells aiming at four producer wells and two injector wells and
under the farm-out agreement. The subscription reaching around 120 bpd, up from the current the tie-back between the wells and the Frade
of the small private placement announced herein 17 bpd. FPSO. The expected CAPEX of the project is
constitutes a Company action aimed at securing The investment of this programme is esti- composed of $300mn for the tieback, $360mn
such funding. mated at $850,000, which will be funded and for well drilling, $100mn for subsea equipment,
In Argentina, Interoil has signed an agree- carried out 100% by Velitec SA, and repaid with and $40mn for adjustments to the Frade FPSO
ment with Velitec to invest in the re-opening of 50% of the net oil sales. Interoil will retain all and other items.
15 wells in the Mata Magallanes Oeste (MMO) equity in the license. PetroRio, March 05 2021
oil field, including the reconditioning of the MMO’s oil production will be trucked to
nearby dispatch battery at the Las Mesetas #3 LM#3, a dispatch battery placed in the nearby
(LM#3), located within Las Mesetas Field treat- Las Mesetas field and then either sold directly
ment facility (currently owned and operated by at site or pumped through a YPF oil pipeline
YPF). to TERMAP, an export terminal, located in the
Interoil is further announcing a Private city of Caleta Olivia. The LM#3 export alterna-
Placement of new shares of up to (NOK equiva- tive further strengthens MMO’s economic and
lent) EUR 999,999. The successful completion of operational performance.
this share issue shall provide the Company with The Company is announcing a small pri-
funds required to trigger the start of drilling vate placement of new shares in the Company
activities at the Mazorca well in the Altair Block. with gross proceeds of up to the NOK equiva-
Leandro Carbone, CEO of Interoil, com- lent of EUR 999,999. The Private Placement
mented: “We are very enthusiastic about these is directed towards Norwegian investors and

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