VSM22

Operator: Telpico, LLC.
Block Number: VSM 22
Contract Number: 17
Contract Date: March 10, 2011
Block Size: 85,132 acres
Minimum Obligation: 1 Well and 105 sqkm of 3D Seismic

Executive Summary

Block VSM 22 is in the central portion of the prolific Upper Magdalena Valley Basin, about 300 kilometers southwest of Bogota. The basin is bounded by the Eastern and Central Cordilleras where Cretaceous and Tertiary sediments were deposited in a foreland setting and compressed from the east and west during the Tertiary. The block straddles two producing trends. The Yaguara (Los Mangos) Field (64 MMBO EUR), is located on the eastern boundary of the block. Oil seeps are documented by Telpico field work on the VSM 22 Block and to the north.

The play type of the area (Los Mangos Field) is a conventional structural hanging-wall closure. The primary objective is the basin-prolific Cretaceous Caballos Sandstone that has produced 46 MMBO of 210 API oil from Los Mangos Field (EUR 65 MMBO). The Caballos is overlain by the world class source rock LaLuna/Villeta Shale that is currently a target for unconventional plays in Colombia.

The Hidalgo Prospect (VSM 22) was identified on a 2014, very high quality, 158 km2 PSDM-3D. The Hidalgo Prospect is expected to be drilled in June, 2019. Estimated prospect reserves is 22 MMBO.

Telpico maintains its social activities for the Hidalgo Prospect in the Municipality of Yaguara.