Interesting that while RRS so far declare they hold interest in PUT-6 and PUT-7 and are discussing about farm-out a portion of the interest, Suroco made this deal yesterday. Btw. no mention about RRS share in PR:-))
SUROCO ENERGY INC. ANNOUNCES AGREEMENT TO ACQUIRE INTEREST IN THE PUTUMAYO 7 BLOCK AND TESTS QUINDE-6 APPRAISAL WELL
Suroco Energy Inc.'s wholly owned subsidiary, Suroco Energy SLU, has entered into a definitive agreement with Petro Caribbean Resources Ltd. (PCR) and PetroGranada Colombia Ltd. (PGC) to acquire a 50-per-cent interest in the Putumayo-7 block in Colombia from PCR. Consideration payable by Suroco under the Agreement is (a) the payment to PCR of US$141,500, representing a portion of the back costs in the PUT-7 Block, and (b) the agreement to pay a 10% royalty to PCR on Suroco's share of production in the PUT-7 Block (as further described below). Pursuant to the Agreement, PCR has also agreed to sell a 50% interest in the PUT-7 Block to PGC. Under the Agreement, PGC will provide US$18.6 million of guarantees for the Letters of Credit required by the Agencia Nacional de Hidrocarburos of Colombia (the "ANH") to guarantee the first phase of the PUT-7 exploration program.
The transactions contemplated by the Agreement (collectively, the "Transaction") are subject to a number of conditions. The Transaction is expected to close within eight (8) business days of the aforementioned conditions being satisfied. Upon completion of the Transaction, an application will be made to the ANH for their approval to transfer the operatorship for the PUT-7 Block from PCR to Suroco.
Upon approval by the ANH, the 50% economic interest in the PUT-7 Block that Suroco is to acquire pursuant to the Agreement will convert into a full 50% undivided working interest.
