Completion of Putumayo Acquisition

Source Press Release
Company Amerisur Resources PlcGulfsands Petroleum Plc 
Tags Asset Deals, Deals, Upstream Activities
Date December 31, 2018

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce the approval from the Agencia Nacional de Hidrocarburos (ANH) to the assignment of 100% Operated working interest in the Putumayo 14 (Put-14) block in Colombia, in favour of its affiliate Amerisur Exploracion Colombia Limitada. The ANH approval to the assignment has enabled the closing and completion of the farm in agreement (FIA) executed with Gulfsands Petroleum Plc (Gulfsands).

The Put-14 block covers 46,361 hectares in the Caguan-Putumayo basin and is located contiguously to the south of Amerisur's operated Terecay block. The contract is an Exploration and Production contract held with the ANH. The contract carries an X Factor of 5%. The contract continues in Phase 0, in the process of previous consultation (consulta previa) that has already initiated with an indigenous community within the block, as required by law before operations commence.

As per the terms of the FIA, Gulfsands transferred to Amerisur the total amount of US$750,000 (plus an additional amount to be transferred in Colombia once accounts have been conciliated between the Parties), which corresponds to the balance of the initial amount of US$1,250,000 that was agreed between the Parties to be a contribution from Gulfsands to the consulta previa and operational costs of Phase 0. Additionally Gulfsands transferred the total amount of US$1,702,208 that will be required for the guarantee for the Phase 1 work programme in favour of Amerisur.

Subsequent to the consulta previa, Phase 1 commitments are the acquisition of 98km of 2D seismic data and the drilling of one exploration well. The period of Phase 1 is 36 months from the end of Phase 0.

John Wardle, CEO of Amerisur commented: 

"We are very pleased to have closed this 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 and our partner Oxy Andina see significant potential in multi-layered reservoirs, proven in our existing operations, in legacy wells and within Ecuador.  The block has further strategic importance in that it extends south towards the Putumayo river and Ecuadorian border. This brings benefits in terms of accessibility for operations and eventual evacuation of produced crude by providing a pathway to access the pipeline systems of Ecuador, in a similar way to the existing OBA system in our Platanillo field."

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd