The Corporation was selected as the successful bidder for the right to explore for oil and natural gas on the VMM-21 block in Colombia at the June 22, 2010 exploration bid round.
VMM-21 is an approximately 119,000 acre block in the Middle Magdalena Valley in central Colombia. The bid for the block was submitted by C&C as the Operator for a 100% participating interest and is subject to the execution of an exploration and production contract (an "E&P Contract") with the ANH, which is expected to be finalized by the end of September 2010. The Corporation has made a total work commitment of US$13.6 million for seismic and drilling. The Corporation also bid a 2% “x-factor”, which equates to an incremental royalty on production from the block.