YPF in Alange Colombia farm-ins

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Argentine giant YPF has struck a series of deals with Canadian independent Alange Energy which see it gain a foothold in Colombian assets.

YPF is splashing out up to $123 million on a couple of farm-ins while the two are also looking at further possible strategic partnerships.

Alange is farming-out all of its working interest in Catguas assets in a deal which may see YPF spend $100 million over the next three to five years.

Alange currently has a 50% beneficial working interest in the asset the Catguas A Northern asset and a 15% beneficial working interest in the Catguas B Southern area.

“Pursuant to the agreement, YPF will assume a 35% interest in the Northern area and a 10.5% interest in the Southern area and will pay $5 million cash to Alange Energy,” Alange wrote in an announcement to the Toronto Stock Exchange today.

“Under certain conditions, the company has the option to increase its working interests up to an additional 10% in the Northern area and 5% in the Southern area.”

In addition Alange is farming-out a 100% working interest in the Carbonera play to YPF for $23 million. YPF will then pick up the tab for a 3D seismic programme as well as the drilling of one well this year, while it will also look to become the operator of the asset.

The pair will also look to “explore further business opportunities” in a total of 10 other assets on Alange’s books.

Further, Alange wrote that it is “continuing its discussions with several parties in connection with investment opportunities to joint venture, farm out or dispose of its interests in certain of its other assets”.

UpStreamOnline.