10th Mar 2014 12:23
LONDON (Alliance News) - Shares in Global Energy Development PLC rose Monday morning after the company said its has signed a farm-out agreement with Everest Hill Energy Group Ltd for its Bolivar association contract area in Colombia.
The Latin American-focused petroleum exploration and production company said the 50-50 joint venture deal will see Everest pay it USD5 million upon the signing of the agreement, as well as fund part of the work programme.
Work funded by Everest will include the obligation to pay all future costs and expenses to re-enter and hydraulically fracture potential formations in two existing wells in the contract area within one year of the completion of the agreement, and to drill and complete one new exploitation well in the contract area within two years of completion.
"The company is very keen to re-commence its activities in the Middle Magdalena Basin. This agreement not only provides us with the funding for a three well programme but it also allows us to share the risks as we jointly develop the company's largest asset base," said Managing Director Stephen Voss in a statement.
Shares in Global Energy were trading 9.1% higher Monday morning at 87.30 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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