Amerisur farms out Colombia blocks to Occidental

E&P player Amerisur Resources has farmed out 50% participating stakes in four blocks to the US’ Occidental Petroleum, the South America-focused company announced in a Friday press statement.

Under the agreement, local subsidiary Occidental Andina will put USD 93.2 million towards exploration and appraisal works in the Tacacho, Mecaya, Terecay and Putumayo-9 blocks in the 2019-2021 period. The investment includes partial funding for a USD 65-million 2D-seismic survey over 878 kilometres, as well as full funding for a five-well exploration campaign expected to cost around USD 38 million.

“The farm-out to Occidental Andina is a strong endorsement of the attractiveness of our acreage position in the Putumayo Basin and Colombia, which we built at low cost in the oil market downturn, and the value of the OBA pipeline for the evacuation of oil from these blocks,” Amerisur chairman Giles Clarke said. “It accelerates our upcoming work programme while significantly reducing our future capex requirements.”

The farm-outs follow Amerisur’s buyout of its partners in the Mecaya block earlier this week through cash and future production and royalty payments.