Gulfsands has an Exploration and Production Contract over the onshore contract area Llanos Block 50 covering approximately 464 km².
The Llanos Block 50 (“LLA 50”) is in the mature north Llanos basin, where 100 km to the north-west, Occidental discovered the giant Canon Limon field with reported reserves of more than one billion barrels. The first exploration phase expires in November 2016 with a minimum work obligation of 103 km of 2D seismic data to be captured in a new survey and the drilling one exploration well. The Group has also undertaken to spend $0.1 million on an additional work programme obligation which may be satisfied via the acquisition of an additional 5 km of 2D seismic.
The Group continues to undertake the preliminary studies required to be completed prior to the commencement of either 2D or possibly exploration-oriented 3D seismic acquisition programmes on the contract areas.
