Oil exploration company, Groundstar Resources Limited yesterday said that its sales agreement with another company for a working interest in Groundstar’s Takutu Basin Petroleum Prospecting Licence (PPL) has been completed.
Canacol Energy Limited’s net working interest in the PPL is now 90% while Groundstar’s net interest is 10%. In a press release, the President and Chief Executive Officer of Groundstar, Kam Fard, said that the agreement with Canacol for the sale of an additional working interest in the Takutu Basin PPL that was originally announced on May 14 has been successfully completed.
The statement said that the Agreement has been approved by the appropriate Guyana government authorities. Under the terms of the Agreement, Canacol acquired an additional 35% working interest in the PPL in exchange for a cash payment to Groundstar of US$3.45M.
Canacol’s net working interest in the PPL is now 90% while Groundstar’s net interest is 10% which will be carried by Canacol to first commercial production. Groundstar will remain operator of the PPL through to completion of the first exploratory well.
The Farm-In Agreement announced on March 12 last year between Groundstar and Canacol is terminated by the completion of this sale.
“The influx of new funds plus the retention of a carried interest in the PPL is a positive development for Groundstar. Groundstar welcomes Canacol as a highly experienced and successful operator in South America. The intent of the partnership is to drill an exploratory offset well to the 1982 Home Oil light oil discovery on the Karanambo Prospect in the first half of 2010”, the statement said.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in the Middle East, North Africa and South America.
