Petrolatina Energy (LSE:PELE)
Historical Stock Chart
2 Years : From May 2011 to May 2013
PetroLatina (PELE.LN), the oil and gas exploration, development and production company focused on Latin America, Friday announced that it has now received approval from the Agencia Nacional de Hidrocarburos, or ANH, for the farm-out agreement entered into with Shell Exploration and Production Colombia GmbH, an affiliate of the Royal Dutch Shell group of companies, in respect of the Company's VMM-28 exploration block.
-Under the terms of the agreement, Shell E&P Colombia will acquire an 85 per cent participating interest in the Company's VMM-28 Exploration and Production contract.
-The VMM-28 block is currently wholly owned and operated by Petroleos del Norte S.A., PetroLatina's Colombian operating subsidiary.
-In accordance with the terms of the farm-out agreement, Shell E&P Colombia agreed to pay a total fee of $15 million in cash to PetroLatina and the remaining $12 million is expected to be received shortly.
-Shell E&P Colombia will be appointed as operator of the contract and will take responsibility for the work program.
-The Company intends to use the proceeds from the farm-out agreement to assist with the part funding of its planned ongoing drilling program and development commitments in respect of the remainder of its Colombian asset portfolio and for general working capital purposes.
-Shares at 1447 GMT up 4.72% at GBP0.13875 valuing the company at GBP16 million.
-By Jana Weigand, Dow Jones Newswires; 44-20-7842-9314; email@example.com