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Exxon Agrees To Fund Up To $50Mln Of Canacol Play In Colombia

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04/04/2012 | 11:54pm CEST

ExxonMobil Corp. (>> Exxon Mobil Corporation) agreed to pay up to $50 million to help fund a Colombian oil development being explored by Canacol Energy Ltd. (CNE.T, CAAEF).

Under the deal, which remains subject to approval by Colombian regulators, ExxonMobil will carry some of the cost of drilling and testing up to three wells in one of Canacol's shale oil plays.

Canacol said the arrangement will help it develop the unconventional oil play as Exxon brings its drilling expertise to the region.

ExxonMobil stands to earn half of the proceeds from Canacol's 40% interest in the contract. Canacol plans to retain its 100% interest in the adjacent Santa Isabel exploration and production contract.

Exxon shares were recently off 10 cents at $84.88 after hours. The stock is off 1.6% this month through Wednesday's close.

-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; [email protected]

Stocks mentioned in the article : Exxon Mobil Corporation
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