C&C Energia Ltd. has held a 90% working interest in the Andaquies technical evaluation agreement (the “TEA”) since May 15, 2009. On August 5, 2010, the Corporation converted the Andaquies block from a TEA to an E&P contract with the signing of a definitive agreement with the ANH. Located in the central Putumayo Basin, Colombia, the Andaquies Block is 114,875 gross acres in size (103,388 net acres). The primary target is the Caballos formation.
To date three independent lead types have been identified on the Andaquies block:
- Clear expression of a sub-thrust fault lead in two seismic lines located on the south-western part of the area. This needs additional 2D seismic lines to be converted into a drillable prospect.
- In the central and eastern region there is clear evidence from seismic and two wells of a regional pinch-out of the main reservoir target, Caballos Formation, on the basement. 2D seismic data is required to verify this lead and convert into a drillable prospect.
- There is a high quality dip seismic line in the north of the block that shows a hanging wall anticline formed by a reverse fault. These types of anticlines form the traps for the majority of the large fields encountered in the Putumayo Basin.
The Corporation plans to conduct a 125 km 2D seismic data acquisition program in late third quarter or the fourth quarter of 2010, with exploration drilling likely to follow in 2011.