Debbie Harken9 Apr 2006 08:16
Harken Energy Corp. Friday, April 07, 2006
Harken Energy said that its subsidiary, Global Energy Development, has signed a new exclusive exploration and production concession contract with Colombia's National Hydrocarbons Agency. The deal gives Harken access to Los Sauces area, which covers approximately 61,600 acres in Colombia's Central Llanos region. Global already has three contracts--the Alcaravan Association, Rio Verde, and Los Hatos
Exploration and Production Concession contracts--in the region. The Los Sauces Contract is contiguous with the northern boundary of the Rio Verde contract, where Global is currently testing the Tilodiran #2 exploratory wellwith one zone having produced at a natural flow rate of 1,125 bopd plus gas. Los Sauces also is located adjacent to the established, producing Morichal and Tocaria fields that are operated by an international oil company.
Global will own 100 percent of the Los Sauces Contract subject to an initial 10.5-percent royalty. Future production levels will determine the size of the royalty. The contract has a 30-year principal term that comprises an initial six-year exploration phase and a 24-year exploitation and production phase. Under the terms of the agreement, Global must within 12 months reprocess approximately 200 kilometers of existing seismic, acquire and process 50 kilometers of 2D seismic, and drill one exploratory well.
Global can at its election proceed to phase 2, 12 months in duration, and drill one