Ram Petroleum Seeks Partner for Rio Putumayo

Canadian oil exploration company Ram Petroleums is seeking an international partner to farm in into its sole asset, the Rio Putumayo Association Contract in southern Colombia's Putumayo basin, by 1Q00, Ram president and CEO Robert Goldsmith told BNA. The partner will furnish capital to continue exploration and allow Ram to pay off creditors from the initial discovery well drilled in 1998. Ram drilled an exploratory well in 1998, Airu-1, which tested production of 550 barrels per day (bpd), Goldmsmith said. Drilling in the area is costly due to access problems brings drilling costs as all equipment must be flown in bringing drilling costs up to US$5mn per well, Goldsmith said. The partner will be given an option of up to 75% of the association contract, depending on the amount of capital it is willing to provide. To date Ram has spent approximately US$5.5mn on the contract. The partner will have to drill an exploratory well or acquire 3D seismic studies. Recently Ram relinquished 75% of the Rio Putumayo contract area in exchange for an extension on its exploratory commitments with Colombia's state oil company Ecopetrol. The area now encompasses 37,300 hectares and has potential reserves of 98 million barrels. According to the contract with Ecopetrol, Ram must drill another exploratory well. However, Goldsmith explained that Ecopetrol would be willing to change that requirement to 3D seismic studies instead.