LONDON (Alliance News) - Andes Energia PLC on Monday said it has entered into a collaboration agreement with Colombian oil and gas company Canacol Energy Ltd to develop licences currently held by Interoil Exploration and Production ASA.
Canacol will buy 49% of Andes' 51% interest in Interoil for USD3.2 million under the terms of the agreement. Andes is planning to use the proceeds to back the development of its projects in Argentina and Colombia and for working capital purposes.
Canacol will then provide a guarantee of USD4.8 million to cover Interoil's obligations on the LLA-47 licence in Colombia.
"We are very pleased to be able to enter into a partnership with Canacol, a leading exploration and production company focused on Colombia. This will allow us to accelerate the development of Interoil's Colombian assets and provide an opportunity to explore additional collaboration agreements with Canacol," said Chief Executive Alejandro Jotayan.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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