LONDON (Alliance News) - Amerisur Resources PLC said Friday that it has signed a USD93.3 million farm-out agreement with an affiliate of US-listed oil explorer Occidental Petroleum Corp for exploration blocks located in the Putumayo region of Colombia.
Shares in Amerisur Resources were up 21% at 12.10 pence each in morning trade.
The UK listed oil explorer signed a farm-out pact with Occidental Andina LLC, for exploration blocks: Putumayo-9, Terecay, Tacacho and Mecaya. In consideration of the acquisition of a 50% interest in each block, Occidental Andina will fund a USD93.3 million exploration and appraisal program between 2019-2021.
Under the agreement, Occidental Andina will fund 85% of the total planned 2D seismic cost expenditure of USD65 million and 100% of the USD38 million planned drilling program. Amerisur Exploracion Colombia, a unit of Amerisur Resources, will be the operator of the farm-out blocks.
"The farm out recognises the significant value we have created during our growth phase over the last few years and this transaction will now amply fund, widen and bring forward our exploration programmes in the Put-9, Tacacho, Terecay and Mecaya properties, which we and our new partner believe to hold very substantial resource potential. As operator, we are already working on the programmes to be executed in these blocks and expect to progress those activities in the near term," Chief Executive John Wardle said.