Colombia Operations

Sagres Energy has a proposed acquisition that will provide a lower risk, higher growth-development platform through the addition of two bid round blocks in the Llanos, and Putumayo basins, Colombia.

Exploration Opportunity

  • Relatively unexplored, low risk, high production growth
  • Geologically parallels Western Canada Basin for Llanos and Putumayo basins
  • Application of 3D seismic and directional drilling technology is providing success
  • Canadian companies are very active, eg. Gran Tierra, Rubiales, Petromineales, etc.
  • National Hydrocarbon Agency (ANH) awarded 81 blocks mostly to international companies in recent 2010 bid round
  • Colombia is politically and economically stable and strong
  • Long term stable contracts
  • S & P credit rating BB+
  • Royalties — sliding scale 8% for 5K bopd up to 25% for 600K bopd field
  • 33% corporate tax
  • Pool of skilled professionals in oil and gas industry

Potential Assets

  • Focused on Colomia's two most prolific basins:
    • 1 block — Putumayo Basin
    • 1 block — Llanos Basin
  • 100% working interest in each block
  • Total gross area: 111,085 hectares
  • Strong financial backers with strong track record in capital markets
  • Other agreements for for acquisition of further South American interests
diagram of Colombia Operations

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