Sintana Energy Inc. has entered into an amendment to an Asset Purchase Agreement (the "Agreement") with Live Oak Holdings, Inc. and its wholly owned Colombia subsidiary, LOH Energy Sucursal Colombia, (together "LOH"). Under the amendment, and as a further step in the Company's efforts to high grade its asset base, Sintana will assign and transfer its participation interests in two non-core Colombia blocks to LOH. In addition, it will adjust its participation interest in the strategic VMM-4 Block in exchange for LOH bearing 100% of Exploration Phase II costs and to facilitate and accelerate execution of the License Contract Work Program.
In May 2012, Sintana completed a business combination with Colcan Energy Inc. ("Colcan"). The strategic driver of this transaction was obtaining a 100% participation interest in the VMM-37 Block in Colombia's highly prospective Middle Magdalena Basin. As previously reported, the combined conventional and unconventional unrisked oil and gas resources on this block are estimated, net to Sintana, at over 200 million barrels of oil equivalent (MMBOE).