Canacol Energy Signs a Farm-Out Agreement With ExxonMobil

Canacol Energy Ltd. (TSX:CNE) has signed a farm-out agreement with ExxonMobil Exploration Colombia Limited to explore the VMM 2 exploration and production, Middle Magdalena basin of Colombia.

As quoted in the press release:

The VMM 2 E&P contract is one of three adjacent contracts that Canacol has interests in, representing 126,000 net acres that expose Canacol to a potentially large, unconventional shale oil play. With $ 91 million in cash, cash equivalents, and restricted cash on hand as of December 31, 2011, and strong cash flow from its operated oil producing assets in Colombia, the Corporation remains fully funded to execute its exploration and development programs for 2012.

Click here to read the Canacol Energy Ltd. (TSX:CNE) press release.