InterOil Signs Accords With SLS Energy

InterOil said Thursday it has entered two accords under which Colombia-based SLS Energy will share the cost of drilling four wells in the Altair and LLA-47 contracts.

SLS will assume responsibility for 90% of the capex for the Altair well, in return initially for 85% of the net operating income from the well and 36% once the cost of the investment has been recovered.

SLS will assume responsibility for 60% of the capex for the Vikingo 1, Frison 1 and Jaca 1 wells. It will receive initially 43% of the net operating income from the wells and 22% once the cost of the investment has been recovered.

Interoil plans to finish the drilling of the Altair well by the end of January 2017, the first of the LLA-47 wells during the first 10 days of February and the two remaining wells on LLA-47 during April and May 2017. The company said it believes the Colombian energy regulator will approve a nine-month extension to Nov. 2017 to complete the remaining five wells, once the first three are completed.

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