La Cortez Updates Ops at Putumayo Block

- La Cortez Updates Ops at Putumayo Block

Thursday, August 04, 2011
La Cortez Energy Inc.

La Cortez provided the following operational update on the Company's Putumayo-4 block located in the Putumayo Basin in southwestern Colombia:

Putumayo-4 Block

Social Activity

As previously disclosed, at the end of November 2010, the local community consultation process was suspended pending appoint of a new contractor to act on behalf of the Ministry of Interior. During July 2011, consultations were reinitiated, and significant progress has been made in the northern part of the block with two communities consulted to date. One agreement is ready for signature by the community and Petroleos del Norte S.A. (PetroNorte), operator of the Block; a second agreement is under discussion, with final approval currently expected within a month. Community consultations in the southern part of the block are proceeding more slowly, and while the negotiations continue in earnest, it has been agreed to focus all initial seismic activity in the northern area of the block in order to fulfill the commitments to the ANH (Agencia Nacional de Hidrocarburos).

Operational Activity

Assuming completion of the community consultation process under the timeline indicated above, the near-term operational objective is to shoot 104.8 km of 2D seismic over the block during October 2011. The seismic acquisition is a contractual obligation of the parties under the terms of our agreement with the ANH. The results of the seismic acquisition program will allow PetroNorte and us to finalize the selection of the drilling location for the first exploration well to be drilled on the Putumayo-4 block.

Bid specification for the seismic acquisition is expected to be complete by the end of August 2011, awarded in September, and initiated in October 2011. We anticipate that we will have the seismic volume interpretation from the acquired seismic by early 2012. In addition, once the community consultations are finalized, we will commence work on the Environmental Impact Study, which is required to secure the environmental license. Subject to completion of permitting and civil works at the drill-site, we and PetroNorte anticipate spudding the exploratory well (which is a commitment obligation under the contract with the ANH) during the second quarter of 2012.

Andres Gutierrez, President and CEO of La Cortez, commented on the announcement, "We are very pleased to announce the community consultation process is underway once again, and eagerly anticipate the increased level of activity over the coming months. We remain very optimistic about the exploration potential of the Putumayo-4 block and are encouraged that our views are shared by others who have recently approached us regarding their potential interest in partnering with us on future exploration and development activity."

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Canacol to Farm-In to Putumayo Basin

- Canacol to Farm-In to Putumayo Basin

Monday, May 30, 2011
Canacol Energy Ltd.

Canacol has entered into a binding term sheet, subject to the finalization of definitive Farm-in and Joint Operating Agreements, with C&C Energia Ltd. for the farm-in to a portion of the Operators working interest in the Andaquies and Coati Exploration and Production contracts located in the Putumayo basin in Colombia. The Coati and Andaquies E&P contracts are royalty contracts governed under the terms of the Agencia Nacional de Hidrocarboros. C&C Energia Ltd. will continue to function as the Operator of both blocks.

Charle Gamba, President and CEO of Canacol, commented, "We are pleased to be partnering with C&C Energia on these two contracts, which add three light oil exploration wells to our four well exploration drilling program in Colombia this year."

Upon the Corporation meeting its obligation to pay 72% of the cost associated with acquiring seismic and drilling one exploration well it will earn 36% of the Operators 90% working interest in the Andaquies E&P contract. Upon the Corporation meeting its obligation to pay 80% of the cost associated with acquiring seismic and drilling one exploration well it will earn 40% of the Operators 100% working interest in the Coati contract.

The Operator plans to drill three exploration wells targeting light oil prospects in the second half of 2011, two on the Andaquies contract and one on the Coati contract, pending the receipt of all necessary permits and approvals.

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Vast Exploration Closes Putumayo Farm-Out

- Vast Exploration Closes Putumayo Farm-Out

Tuesday, May 17, 2011
Vast Exploration Inc.

Vast Exploration has closed its previously announced farm-out of a 90% interest in the Putumayo Basin of Colombia Block (the "Block") to a wholly-owned subsidiary of Sagres Energy Inc. ("Sagres") in consideration for the Company retaining a 10% carried interest during the first exploration phase (the "Carried Interest").

The Block has an area of 148,000 acres (gross) and is located in the Putumayo Basin of Colombia. The Block offers exploration upside on a structural trend with existing discoveries, and is situated strategically between two blocks (CAG-6 and PUT-09) awarded to Pacific Rubiales and Talisman Energy, respectively. The Block carries a royalty of 7% payable to the Government of Colombia in addition to the basic royalty scheme established under Colombia Law, being 8% for up to 5,000 bopd and increasing to 25% for a 600,000 bopd field. All other terms of the contract are standard to the model Colombian E&P Contract. Sagres will have an option to acquire the Company's Carried Interest in the Block over the next twelve months at a price to be mutually agreed.

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