The company is pleased to announce that it has entered into two Participation Agreements (Acuerdos de Cuentas en Participación) with SLS Energy ("SLS"), a Colombian corporation, pursuant to which SLS will share the funding of the drilling of four wells in the Altair and LLA-47 E&P contracts, as detailed below.
SLS will assume responsibility for 90% of the capex for the Altair well (Turaco-1). In consideration, SLS will receive initially 85% of the net operating income from the well and 36% once the cost of the investment has been recovered.
SLS will assume responsibility for 60% of the capex for the Vikingo 1, Frison 1 and Jaca 1 wells. In consideration SLS will receive initially 43% of the net operating income from the wells and 22% once the cost of the investment has been recovered.
Subject to permit and other local approvals Interoil plans to finish the drilling of the Altair well by the end of January 2017, the first of the LLA-47 wells during the first 10 days of February and the two remaining wells on LLA-47 during April and May 2017. On completion of the first of the three wells on LLA-47 the board believes the ANH will approve our request for a 9 month time extension to November 2017 for the remaining 5 wells with the possibility to request a further extension of 6 months.
Interoil will continue as the operator and holder of the respective WI under the Altair and LLA-47 contracts and responsible before ANH for all the obligations derived from them.
Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The Company is the operator of several production and exploration assets in Colombia. Interoil currently employs approximately 71 people and is headquartered in Oslo.