PetroMagdalena acquires additional stake in Colombian block

PetroMagdalena Energy has executed a conditional assignment agreement with Pacific Stratus Energy Colombia to acquire an additional stake in the Arrendajo block in the Llanos Basin, Colombia.

According to the agreement, PetroMagdalena will pay $10m to acquire an additional 32.5% working interest in Arrendajo, which covers an area of 316km².

On completion of the transaction, PetroMagdalena will have a 67.5% participating interest in Arrendajo.

PetroMagdalena also entered a settlement agreement with Beta Energy with respect to the arbitration disputes involving the ownership of one 750 HP drilling rig and one service rig, and the master services contract for drilling rigs.

PetroMagdalena plans to mobilise the 750 HP drilling rig to drill the Yopo exploration well in December under an operation contract with a Colombian drilling services provider.