ORLANDO, Fla., Feb. 13, 2013 (GLOBE NEWSWIRE) -- IAHL Corporation (Other OTC:IAHL) is pleased to announce that further negotiations of a previously announced letter of intent on October 10, 2012, between its wholly-owned subsidiary, Altenesol Colombia S.A.S. ("Altenesol"), and Geoproduction Oil and Gas Company of Colombia ("Geoproduction"), a wholly-owned subsidiary of Canacol Energy LTD (Canacol), (TSX:CNE) (BVC:CNEC) has resulted in a signed 15 year natural gas supply contract for the Nataly 1 LNG project in Colombia. The contract is for the supply of 17 million cubic feet per day (MMCFD) of natural gas at a price of US$4.90 per MCF agreed to by both parties with an annual price escalation of 2% commencing in the second year of production under the contract.
The contract is subject to the fulfillment of a number of conditions precedents, which are in process, by both Altenesol and Geoproduction. The principal ones are converting existing customer LOIs to take or pay contracts, finalizing project funding, having the Nataly 1 LNG plant operational within the guidelines of the agreement as well as Geoproduction's planned drilling activities on the basis of the 3D seismic results and the certification of additional reserves at the La Esperanza block.
"We are excited about working with Canacol in this history making contract which will be the longest gas contract in Colombia. This is a major milestone for our project which is the first of several more to come over the next quarter. We were able to leverage the deep experience of our Board Member, Stuart Jara, in negotiating complex long term supply contracts to ensure we secured a beneficial and bankable agreement," said Nelson De La Nuez, CEO of IAHL."As a member of the board, it was my pleasure to take the lead in the negotiations of the contract, working with the Altenesol team to draft and finalize the deal. This agreement is an important milestone in the delivery and establishment of the vision created by the CEO and the Board," said Stuart Jara, IAHL Board of Director.