In the last few years, this area of the Middle Magdalena unconventional play has received considerable attention from world-class, international resource play operators. In early April, 2012 Canacol Energy Ltd. and ExxonMobil Exploration Colombia Limited announced a US$50 million farm-out deal on VMM-2 which is adjacent to Sintana's VMM-4 block. Shell Oil is currently preparing to initiate an exploration program on VMM-3 which is adjacent to the VMM-2 and VMM-4.
Exploration wells recently drilled by Canacol, Conoco, Exxon and other industry participants have reportedly discovered substantial conventional and unconventional oil reserves on several nearby blocks including, Midas B, VMM-2 and Santa Isabel. Additionally, Ecopetrol targeted significant production levels from the Middle Magdalena unconventional shale fairway during 2015.
In the fourth quarter of 2013, a 206 square kilometer 3D seismic data acquisition program on VMM-4 was completed and has now been processed and interpreted. The number and size of prospects identified in both the conventional and unconventional formations are very encouraging. The Company's 15% interest is carried in 2 wells scheduled to be drilled in 2016.