Stetson Oil & Gas Ltd. has terminated the farm-out agreement entered into with Sagres Energy Inc. related to LLA11, a 126,494 acre block located in the Llanos Basin of Columbia, a mature and prolific basin in the foreland of the Colombia Andes close to the giant Cano Limon Oil Field (the "Block"). Stetson successfully acquired the Block in June 2010 through a bidding round organized by the Agencia Nacional de Hidrocarburos of Colombia (ANH).

As per the terms of the Agreement, Stetson farmed out 90% interest in the block to a subsidiary of Sagres in exchange for retaining a 10% carried interest during the exploration phase, which consisted of a minimum expenditure of USD$9 million over a period of 36 months.

Tags: Stetson Oil & Gas Ltd.