London-listed Amerisur Resources has signed a farm in agreement (FIA) with Gulfsands Petroleum for the acquisition of the Putumayo 14 block in Colombia.
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.
Under the terms of the FIA, Gulfsands will make a contribution to operational costs of $1.25 million.
Gulfsands will also transfer the required guarantee for the Phase 1 work programme in favour of Amerisur in the amount of $1.7m.
There is no consideration payable from Amerisur to Gulfsands.
Amerisur and Gulfsands will now apply to the Colombian Government for the transfer of operatorship and the 100% working interest in the contract.
John Wardle, CEO of Amerisur commented: “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.
“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.”