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Amerisur Resources signs farm-in agreement with Gulfsands for Colombia asset

Staff 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.
Amerisur Resources
Oil exploration   Amerisur said the contract was currently in phase 0
Amerisur Resources said the Put-14 block covered 46,361 hectares in the Caguan-Putumayo basin, and is located contiguously to the south of its 100%-owned Terecay block.

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.