LONDON (Alliance News) - Amerisur Resources PLC said Monday it has signed an agreement to acquire a 100% working interest in Putumayo 14 block in Colombia for no cost.
The South America focused oil & gas producer has signed a farm-in agreement with Gulfsands Petroleum PLC to acquire Putumayo 14 block. Gulfsands - a previously AIM-listed company - had indicated that block was non-core to its business strategy.
Under the terms of the agreement, Gulfsands will make a contribution to operational costs of USD1.3 million. Additionally Gulfsands will transfer the required guarantee for the Phase 1 work programme in favour of Amerisur in the amount of USD1.7 million.
The block covers 46,361 hectares in the Caguan-Putumayo basin and is located contiguously to the south of Amerisur's 100% owned Terecay block.
"This is an attractive deal for the company, further consolidating our strategic position in the Putumayo and adding additional prospective acreage to our Terecay-Tacacho play fairway, where we see significant potential in multi-layered reservoirs, proven in our existing operations, in legacy wells and within Ecuador," said Amerisur Chief Executive John Wardle.
Shares in Amerisur Resources were trading 0.1% higher at 14.63 pence each.