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Avalon Oil & Gas Acquires Interest in Colombian Exploration Blocks

Posted on: Thursday, 7 February 2008, 09:00 CST

Oil and gas property development firm Avalon Oil & Gas has announced that it has closed its acquisition of a 20% interest in the Talora Block and a 15% interest in the Mecaya Block in Colombia from exploration and production firm Gran Tierra Energy.

Avalon has also announced that the re-entry and re-evaluation of the Manantiales well in the first Talora Block operation has begun. The workover of the Manantiales-1 well is the first of five prospects to be tested on the Talora Block. The 108,333-acre block is located in the Middle Magdalena Basin, approximately 75km west of the capital city of Bogota.

This area is adjacent to and on trend with several oil producing fields including the 117 million barrel Guando field, operated by Brazilian energy firm Petrobras, and the adjacent Mana field, which contains 10 wells which typically flow 500-600 barrels of oil per day (bopd) at approximately 5,500 feet.

The Mecaya Block in the Putumayo basin contains the Mecaya-1 oil discovery well and two other wells which have tested oil. The well was drilled by the Colombian national oil company, Ecopetrol, in 1989. The well tested approximately 650bopd.

Stephen Newton, Avalon's director, said: "Avalon's performance has proven its business model of investing in producing properties with stable cash flows provides a consistent return on investment. With the company's expansion into these promising Colombian properties, Avalon is poised to deliver significantly increased returns."

Source: Datamonitor

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