APCO Oil and Gas announced Monday that it has signed two agreements to begin production and exploration in Colombia.
The petrochemical company has acquired a 50% working interest in the Turpial Exploration and Production Contract in the Middle Magdelena basin from Petrolifera Petroleum Ltd. APCO plans to invest US$4.8 million in this area by the end of 2010.
In the other agreement, APCO acquired a 20% working interest in the Llanos 32 Exploration and Production Contract located in the Llanos basin from TC Oil and Services Ltd. The company plans to fund US$5.8 million of exploration activities by the end of 2012.
Thomas Bueno, APCO’s president and chief operating officer, stated that that “with these two agreements, APCO is working toward securing significant working interests in more than 200,000 acres of exploration acreage in two proven Colombian oil basins.
“Our interests in Argentina continue to be the core of our business and we will continue to seek projects in Argentina’s basins where we have expertise, but we also believe that Colombia offers outstanding opportunities to add projects to our portfolio which have excellent technical and economic characteristics.”
Previously known as APCO Argentina, the company changed its name in July due to its plans to diversify into Colombia.
Both agreements require approval from Colombia’s Agencia Nacional de Hidrocarburos.