Andes has struck a deal with Cancel Energy to develop licences held by Interoil Exploration and Production in Colombia.
Canacol has bought 49% of Andes’ 51% interest in Interoil for $3.2million.
Canacol will hold 49% of the shares in Andes Interoil Limited, the holding company for Andes’ shares in Interoil, resulting in an indirect interest of 24.99% in Interoil.
Andes chief executive, Alejandro Jotayan, said: “We are very pleased to be able to enter into a partnership with Canacol, a leading exploration and production company focused on Colombia.
“This will allow us to accelerate the development of Interoil’s Colombian assets and provide an opportunity to explore additional collaboration agreements with Canacol. Interoil’s strengthened shareholder base will be of benefit to both Interoil and Andes.”