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Amerisur Resources sells Colombia license stake to Occidental for $19.1 million

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Christian Fernsby ▼ | June 17, 2019
Amerisur Resources
Acquisition   Amerisur Resources

Amerisur Resources announced that it has entered into a conditional agreement with Occidental Andina to dispose of a 50% interest in the Put-8 exploration licence ("Put-8") in the Putumayo region of Colombia, for a cash consideration of US$ 19.1 million.

On 20 March 2019, Amerisur announced that it had exercised a right of first refusal (the "ROFR") to acquire the 50% of Put-8 that it is not already interested in, and the operatorship of Put-8, from Vetra Exploración y Producción Colombia SAS ("Vetra").

On 18 March 2019, Amerisur entered into the Agreement with Occidental which is conditional, inter alia, on the approval by the Colombian National Hydrocarbons Agency (the "ANH") of the transfer of a 50% interest from Vetra to Amerisur, pursuant to the ROFR and the subsequent application for and approval of the transfer of a 50% interest in Put-8 from Amerisur to Occidental by the ANH.

The consideration for the Disposal is US$19.1 million in cash, including local taxes, which has been pre-paid by Occidental on the basis that it is refundable if the Disposal does not complete.

On completion of the Disposal, taking into account the pre-payment by Occidental and the recovery of local taxes, the net effect of the completion of the ROFR and the Agreement is expected to be broadly neutral to the Company's unrestricted cash position.

Amerisur will retain the operatorship of Put-8 following completion of the Disposal.


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