Assam Company has bought a 70% interest in an oil block in Colombia for an undisclosed amount. The company is expected to start drilling operations by July. It also expects to produce 4,000-6,000 barrels per day of oil over the next two years.
In an interview Aditya Kumar Jajodia, MD, Assam Company spoke on the acquisition and the company's business plans going ahead. Below is a verbatim transcript. Also watch the accompanying video. Q: Can you tell us about this acquisition in Colombia and what is the exploration schedule and by when do you expect to begin commercial production? A: We did an acquisition in Colombia where we own 70% interest in a block called El Triunfo and we got a farming interest from a company called Sismopetrol and R3, they were the original owners of the block, and now they own 30% and this is in a basin called the Lianos basin. We expect to start drilling by July this year and we expect that over the next two years we should get nearer to 4,000-6,000 barrels a day. Q: How much did you pay for it? A: At this moment, I am not supposed to disclose that but the first drilling of the well will cost us nearly between USD 12 million and USD 15 million. Q: Any early estimates of the resource potential in the block? A: Yes, they have done some 2D and 3D seismic and in resource, we think recoverable resource is between 20 and 30 million barrels. Q: Can you tell us what this will do to the Assam CompanyDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
