VMM-37 – Middle Magdalena Basin

The VMM-37 block (43,158 gross acres/ 175 km2) is in the Middle Magdalena play, which is the oldest producing basin in Colombia, dating back to the 1918 discovery of the giant La Cira-Infantas field complex (900 million barrels). Historically, only the Tertiary section (conventional reservoirs) has been systematically explored. Approximately two billion barrels of oil have been produced in the basin over the last century. In November 2012, the Company announced that a subsidiary had entered into a farmout agreement with an affiliate of Exxon corporation that provided initially for a conveyance to Exxon of a 75% operated working interest in the unconventional horizons associated with VMM-37 in exchange for, among other things, an upfront cash payment and a commitment to fund 100% of certain exploration and appraisal activities including the drilling of exploration wells. The Group retained a 100% participation interest in the conventional resources overlying the top of the unconventional interval.  In connection with the execution of the VMM-37 Farmout Agreement, ExxonMobil and the Sintana entered into a joint operating agreement governing their respective rights and obligations in respect of VMM-37.

In late 2015, the Company announced that the Manati Blanco-1 exploration well located on VMM-37 was successfully drilled and cased through multiple unconventional tight crude oil formations to a measured depth of 14,345 feet. The well confirmed approximately 2,600 feet of gross pay in the La Luna formations which is similar to the Eagle Ford Shale found in Texas.

On 18 April 2023, the Company announced that ExxonMobil had provided notice that it had determined to withdraw from the VMM-37 JOA as of 31 May 2023.  An arbitration claim in respect of this matter was subsequently filed by the Company in July 2023.  As a result, the Company currently has no active operations in Colombia and no future plans in this regard at the present time.