Operator: Telpico, LLC.
  Block Number: VSM 3
  Contract Number: 16
  Contract Date: March 10, 2011
  Block Size: 104,001 acres
  Minimum Obligation: 1 Well and 100 line km of 2D Seismic

Block VSM 3 is in the northern portion of the prolific Upper Magdalena Valley Basin, about 140 kilometers southwest of Bogota. The basin is bounded by the Eastern and Central Cordilleras where Cretaceous and Tertiary sediments were deposited in a foreland setting and compressed from the east and west during the Tertiary.

Productive formations in the area include the prolific Caballos, Monserrate as well as Tertiary production north of the block.

The play type of the area is a conventional structural hanging-wall and footwall closures. There are also stratigraphic production from K unconformity pinch-outs on the Tertiary.

The 2D well-defined prospect primary objective is the prolific Cretaceous Caballos Sandstone. The Caballos is overlain by the world class source rock LaLuna/Villeta Shale that is currently a target for unconventional plays in Colombia.