StockMarketWire.com - Oil and gas company Amerisur Resources said Friday it had signed a US$93m farm-out agreement with Occidental Petroleum for four exploration blocks in the Putumayo basin, Colombia.

Under the agreement, Occidental purchased 50% interest in each of the four blocks - Putumayo-9, Terecay, Tacacho and Mecaya - and agreed to fund a $93.25m exploration and appraisal program between 2019 and 2021.

Occidental Andina would fund 85% of the total planned 2D seismic cost expenditure of $65m and 100% of the $38m planned drilling program, Amerisur said. 'It gives me great pleasure to welcome Occidental Andina as our partner into these important blocks. Occidental Andina has a long and distinguished history in Colombia, with great understanding of the geological and operating environment, and an outstanding technical team with whom we enjoy a close and harmonious relationship,' said John Wardle, CEO of Amerisur.

'The farm out recognises the significant value we have created during our growth phase over the last few years and this transaction will now amply fund, widen and bring forward our exploration programmes in the Put-9, Tacacho, Terecay and Mecaya properties, which we and our new partner believe to hold very substantial resource potential. As operator, we are already working on the programmes to be executed in these blocks and expect to progress those activities in the near term.'

At 10:01am: [LON:AMER] Amerisur Resources PLC share price was +2.05p at 12.05p



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