Further to our announcement on 26 May 2016, a conciliation meeting was yesterday held with the Agencia Nacional de Hidrocarburos ("ANH") to consider the extrajudicial conciliation petition filed by the company in respect of the COR-6 situation.
The company is pleased to announce that agreement has been reached with the ANH, subject to Attorney General confirmation and court approval, to transfer the COR-6 exploration commitments of USD 22 million to the Altair and LLA-47 licences also held by the company.
The commitments include:
1) High density geochemical sampling of 30,000 surface points to be completed by March 2017 with 10,000 samples (80 km²) to be taken on Altair and 20,000 samples (447 km²) on LLA-47.
2) Drilling of 1 stratigraphic well on the Altair licence to be completed by April 2018.
3) Drilling of 2 exploratory wells on the Altair licence to be completed by April 2018.
The company is required to initially increase the guarantees on the Altair and LLA-47 licences by USD 1,5 million and USD 1,4 million respectively consistent with these additional commitments.
We are very pleased that a solution acceptable to both parties has been reached.