Amerisur Resources Plc Annual-report 2018

Source Annual Report
Company Amerisur Resources Plc 
Tags Asset Deals, Deals, Upstream Activities
Date April 09, 2019

Amerisur Resources Plc announced M&A details in its annual report of 2018:

Acquisitions and disposals The Group made the following asset acquisitions and disposals during 2018:

On 20 July 2018, a farm-out agreement was signed with Gulfsands Petroleum Plc (“Gulfsands”) for 100% operated working interest in the Putumayo-14 block. Under the terms of the farm-out agreement, Gulfsands contributed to Consulta Previa and operational costs of $1.5m and transferred the required guarantee for the Phase 1 work programme in favour of Amerisur in the amount of $1.2m. There was no consideration payable from Amerisur to Gulfsands. These amounts received from Gulfsands are classified as a non-current liability and future exploration expenditure will be offset against this credit as it is spent. The ANH approved the acquisition on 20 December 2018.

In November 2018 Amerisur acquired the outstanding working interest in the Mecaya contract in bringing the Company to 100% working interest holder and Operator from 15% interest (58% effective economic interest).

Mecaya Oil and Gas Ltd ceded a 55% working interest in exchange for:

i) a cash payment of $400,000 over a three-year period;

ii) the payment of $1.2m from 50% of Amerisur production in the Mecaya block, payable only when the block is in production; and

iii) once the production payment has been completed, a royalty payment equal to 4% of production revenue post-Government royalties.

Petex Offshore Inc. ceded a 30% working interest in exchange for:

i) a cash payment on completion of $0.15m;

ii) the payment of $0.6m from 10% of Amerisur production in the Mecaya block, payable only when the block is in production; and

iii) a royalty payment equal to 2.2% of production revenue post-Government royalties.

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd