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Undervalued Colombian oil play Petroamerica Oil Corp (TSXV:PTA) has grown its exploration portfolio this morning, just three weeks after taking out a smaller competitor, Suroco Energy, to grow and diversify its asset base.

The company is acquiring a 50% interest in the Llanos-19 block from a division of Pacific Rubiales, Colombia's largest non state owned oil producer, by paying 100% of the next exploration well, up to a maximum of $17 million.

Llanos-19 borders the Los Occoros block, Petroamerica's core producing area.

According to the company, "This strategic farm-in expands the Company's presence in a highly prospective part of the Llanos Basin and provides exposure to a new play type that is gaining momentum in the Llanos Basin of Colombia, targeting low-side fault closures. Ready-to-drill prospects have already been de-risked by 3D seismic and an exploration well, Tierra Blanca Sur-1, drilled by Elf in 1985 on the edge of one of the prospects encountered well developed Gacheta reservoir sands with good oil shows and a log response suggesting oil pay. Exploration drilling could occur as early as the fourth quarter of 2014. This acquisition, together with the recently announced proposed acquisition of Suroco Energy Inc. ("Suroco") and its Putumayo Basin assets, significantly strengthens and diversifies the Company's asset base."

Today's farm-in excludes the Tormento Field where Pacific Rubiales will retain it's 100% working interest.

Here's the news release: Petroamerica Announces Strategic Farm-in to the Llanos-19 Block in Colombia

Petroamerica has 6 high impact exploration wells and 6 lower risk appraisal and development wells planned for 2014, and the Suroco acquisition is expected to close around June 30, 2014.

Earlier this month, approximately 80 million of the company's warrants expired, at a strike price of $0.35 (PTA last traded at $0.295).

The company published a new corporate presentation this morning.

I own this stock and am biased. Do your own due diligence.

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