LONDON (Alliance News) - Amerisur Resources PLC Monday said it has acquired Petro Dorado South America SA for USD6 million, resulting in the company holding stakes in two assets in Colombia.
Petro Dorado South America SA is a subsidiary of Petro Dorado Energy Ltd, and Amerisur will pay the USD6 million in three instalments: USD3 million will be paid on completion of the deal, followed by two instalments of USD1.5 million at three-monthly intervals. The consideration can be paid in cash or in Amerisur stock.
Amerisur has elected to issue stock for the first instalment and will issue 5.1 million new shares at a price of 37.0214 pence. Amerisur shares were down 2.0% to 36.00 pence per share on Monday.
The deal includes a provision of a 2.5% net royalty to Petro Dorado Energy on production from the assets acquired under the deal.
Amerisur will also pay Petro Dorado around USD2 million for 50% of the net costs related to the ongoing 3D seismic programme over one of the assets, and will reimburse the remaining 50% of costs via an additional 2.5% royalty until those costs have been recovered, it said.
Amerisur has obtained a 30% stake in CPO-5, an exploration and production contract covering the Llanos basin. The block includes the evaluation area related to the Loto-1 oil discovery. That well was drilled in 2013 and tested oil in the Mirador formation during a short test. However lack of zonal isolation prevented performance of a long-term test.
Amerisur's interpretation of the existing data indicates potential oil in place for the Loto structure of approximately 44.5 million barrels of oil, and Loto-2, which will be operated by Amerisur, will be spudded in July 2015 for around USD6.5 million.
"In the event of commercial success in Loto-2, a further two wells may be drilled on a back-to-back basis," said Amerisur.
The other acquisition is a 49.5% stake in the Tacacho contract, located in the Caguan-Putumayo basin.
"This acquisition creates an important new opportunity set for Amerisur. Through this transaction we have accessed prime Llanos acreage in the form of the CPO-5 block, with near term drilling on a proven discovery at the Loto structure, and considerable further upside for light and medium oil within the block," said Chief Executive John Wardle.
In addition, Amerisur said Petro Dorado South America carries current tax losses of around USD57 million which could represent a potential tax benefit to the company of up to approximately USD20 million, it said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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