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Amerisur Resources PLC Putumayo Acquisition

30 Jul 2018 6:01 am

TIDMAMER

RNS Number : 0829W

Amerisur Resources PLC

30 July 2018

30 July 2018

Amerisur Resources Plc ("Amerisur" or the "Company")

Putumayo Acquisition

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce that it has signed a farm in agreement (FIA) with Gulfsands Petroleum Plc (Gulfsands) for the acquisition, subject to Agencia Nacional de Hidrocarburos (ANH) approval, of 100% Operated working interest in the Putumayo 14 (Put-14) block in Colombia.

The Put-14 block covers 46,361 hectares in the Caguan-Putumayo basin and is located contiguously to the south of Amerisur's 100% owned Terecay block. The contract is an Exploration and Production contract held with the ANH. The contract carries an X Factor of 5%. The contract is currently in Phase 0, in the process of performing a previous consultation (consulta previa) with a single indigenous community within the block as required by law before operations commence.

Gulfsands has indicated Put-14 is non-core to its forward strategy and in light of the Company's strategic focus on the Putumayo basin, Amerisur undertook a review of the contract area, which indicated attractive follow-on prospectivity associated with the Terecay acreage.

Under the terms of the FIA, Gulfsands will make a contribution to consulta previa and operational costs of US$1,250,000. Additionally Gulfsands will also transfer the required guarantee for the Phase 1 work programme in favour of Amerisur in the amount of US$1,702,208. There is no consideration payable from Amerisur to Gulfsands.

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.

Amerisur and Gulfsands will now apply to ANH 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."

ENDS

Enquiries:
 
 Nick Harrison, CFO                  Tel: +44 (0)330 333 8246 
  Amerisur Resources 
 Billy Clegg / Georgia Edmonds       Tel: +44 (0)203 757 4980 
  Camarco 
 Callum Stewart / Nicholas Rhodes    Tel: +44 (0)20 7710 7600 
  / Ashton Clanfield 
  Stifel Nicolaus Europe Limited 
 Chris Sim / Alexander Ruffman       Tel: +44 (0)207 597 4000 
  Investec 
 Paul Shackleton / Dan Gee-Summons   Tel: +44 (0)20 7614 5900 
  Arden Partners plc 
 

Notes to editors

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay and production from two fields in Colombia. In 2016 Amerisur successfully built and is 100% owner of the strategic OBA oil transfer line into Ecuador.

In Colombia, the Company is operator and has a 100% working interest in the Platanillo block which includes the Platanillo producing field in the Putumayo basin, and holds a 30% non-operated working interest in the CPO-5 block containing the Mariposa-1 producing field in the Llanos basin.

Amerisur has a strong position in the Putumayo basin and has a cluster of near term activity assets around the OBA export line.

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

www.amerisurresources.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

ACQPGUAUMUPRGQB

(END) Dow Jones Newswires

July 30, 2018 02:01 ET (06:01 GMT)

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