Amerisur Resources signs farm-in agreement with Gulfsands for Colombia assetStaff Writer | July 30, 2018
Oil and gas producer and explorer Amerisur Resources has signed a farm-in agreement with Gulfsands Petroleum for the acquisition, subject to Agencia Nacional de Hidrocarburos (ANH) approval, of the 100%-operated working interest in the Putumayo 14 block in Colombia, it announced on Monday.
Oil exploration Amerisur said the contract was currently in phase 0
It said the contract was an exploration and production contract held with the ANH, carrying an x-factor of 5%.
The x-factor is the percentage of gross production after royalty offered by a contractor to the ANH state agency during the bidding process for Colombian assets.
Amerisur said the contract was currently in phase 0, and was in the process of performing a previous consultation with a single indigenous community within the block as required by law before operations commence.
Gulfsands indicated Put-14 was 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 it said indicated attractive follow-on prospectivity associated with the Terecay acreage.
Under the terms of the FIA, Gulfsands would make a contribution to the previous consultation and operational costs of $1.25m.
Additionally, Gulfsands would also transfer the required guarantee for the phase 1 work programme in favour of Amerisur in the amount of $1.7m.
There was no consideration payable from Amerisur to Gulfsands.
Subsequent to the previous consultation, phase 1 commitments would be the acquisition of 98km of 2D seismic data, and the drilling of one exploration well.
The period of phase 1 would be 36 months from the end of phase 0.
Amerisur and Gulfsands would now apply to ANH for the transfer of operatorship, and the 100% working interest in the contract. ■