Interoil to reopen the remaining 19 wells in the MMO oil field in Argentina. Credit: WORKSITE Ltd. on Unsplash.

Interoil Exploration and Production has stepped up its exploration activity in Colombia by signing an agreement for the drilling of up to two explorations wells in LLA-47 onshore block.

The agreement has been signed with Colombian drilling services company SLS and E&P firm Quantum Resources.

Under the agreement, SLS and Quantum Resources will cover 60% of the drilling cost and will retain a 22% stake in the wells.

Interoil plans to commence drill activity at the Jaca.x-1 and Malevo.x-1 exploration prospects soon.

Located in the prolific Llanos Basin, the LLA-47 exploration block covers an area of 447km².

As per Interoil estimates, the Jaca.x-1 well has prospective resources of up to 4.0 MMbbls, with a 30% probability of success.

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Drilling at the Jaca.x-1 well will target the Carbonera formation.

A twin exploration well to Vikingo.x-1, the Malevo.x-1 well has the Gacheta formation as the primary exploration target.

Additionally, the well will target the Carbonera formation to optimise its development.

As per the exploration commitment at LLA-47, Interoil will drill a total of nine wells by February 2022.

Interoil said in a statement: “If any of the wells result in commercial discovery and production, 55% of the net oil operating income (oil sales after royalties and operating and lifting costs) will be allocated to repay the investments, 40% Interoil and 60% SLS and Quantum Resources. The remaining 45% will be split as per equity interest.”

Upon reaching investment pay-out, the net oil operating income is planned to be split as per equity interest, with Interoil holding a 78% share.

Moreover, Interoil decided to invest in the re-opening of the remaining 19 wells in the Mata Magallanes Oeste (MMO) oil field in Argentina.

Earlier, Interoil signed an agreement with Velitec to invest in the reopening of 15 wells in the MMO oil field.

Interoil CEO Leandro Carbone said: “Interoil recognises that the Jaca.x-1 and Malevo.x-1 exploration prospects are very promising and should untap potential oil resources that could be transformative to Interoil’s future production profile.”

Carbone said that the re-opening of the wells at MMO would further unlock valuable barrels in Argentina.