The Corporation and its partner, VETRA Exploration and Production Colombia S.A. (“VETRA”), were selected as the successful bidders for the right to explore for oil and natural gas on Putumayo Block-8, an approximately 103,000 acre block in the Putumayo Basin in southern Colombia, at the June 22, 2010 exploration bid round. C&C and VETRA (together the “Consortium”) each hold a 50% participating interest, with VETRA being the Operator. The selection is subject to the execution of an E&P Contract with the ANH, which is expected to be finalized by the end of September 2010. The Consortium made a total work commitment of US$20.9 million for seismic and drilling. The Consortium also bid a 2% “x-factor”.
The Corporation intends to conduct a seismic data acquisition program in the fourth quarter of 2010, with exploration drilling likely to follow in 2011.