Petro Vista Energy says its wholly-owned Colombian subsidiary Petropuli Ltda. has signed a farm-out agreement with Omega Energy Colombia (Omega) and Green Power Corporation, two private oil and gas exploration companies based in Colombia. Pursuant to the agreement Petro Vista will farm-out an aggregate 30% participating interest in its 100% owned Morichito Block located in the Llanos Basin, Colombia, for a combination of cash and drilling commitments. Petro Vista remains the operator with a 70% participating interest.

In announcing the agreement, Petro Vista President, Read B. Taylor commented, "Our farm-out strategy in Morichito allows us to preserve corporate funds for other development and exploration projects and reduce risk while maintaining appropriate significant interest levels in this key project. We look forward to establishing our first production in Colombia with the completion at Morichito #2 in February 2009 and exploring for significant upside reserve and production potential with the two planned exploration wells. I am pleased we have secured this source of funds and look forward to executing our operations plan. The agreement is in line with our corporate strategy of preserving cash, maximizing our oil production development opportunities while reducing overall risk in our exploration programs by entering into farm-out agreements and joint ventures that are beneficial to the Company and its shareholders."

Under the terms of the agreement, the Farmees will acquire an aggregate 30% participating interest in the exploration and production contract governing the Morichito Block by paying:

US$500,000 cash on or before January 23, 2009; 100% of the costs of the drilling and completion of the Morichito #2 exploration well; 100% of the next US$2,100,000 of exploration costs of the Morichito #1N exploration well; and, 30% of all ongoing costs. The estimated total value of the Farm-out to the Company is US$4,400,000 dollars.

The completion of the transaction is subject to all necessary approvals including approval to the assignment by the Agencia Nacional do Hidrocarburos and the TSX Venture Exchange and completion of due diligence by the Farmees.

Tags: Petro Vista Energy Corp.