Sintana Energy reports that ExxonMobil sent Patriot Energy Oil and Gas, a subsidiary of the Company, a notice stating that, based on the terms of the Joint Operating Agreement between ExxonMobil and Patriot, it had decided to withdraw from the JOA as of May 31, 2023. The notice also states that ExxonMobil will withdraw from the Contract with the Agencia Nacional de Hidrocarbons, effective after obtaining required Government approvals. Both the JOA and Contract pertain to the 43,158 acres property known as the VMM-37 block which is in Colombia’s Middle Magdalena Valley Basin.
Chief Executive Officer Doug Manner commented: 'We are disappointed that our VMM-37 partner for more than a decade, ExxonMobil, has voluntarily chosen to withdraw from both the JOA and Contract. Management has engaged legal and technical advisors for assistance in addressing this unexpected change of events'.
The Company fully reserves its rights under the contracts governing VMM-37 and applicable laws and regulations.
Further updates will be provided with respect to these matters as additional information becomes available.
According to information on the Sintana web site - 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.
In 2021, the National Hydrocarbons Agency (ANH) awarded a Special Research Project Contract called 'Platero PPII' to ExxonMobil which will evaluate the potential for horizontal drilling and hydraulic stimulations at VMM-37.
Source: Sintana Energy
