Oil & gas producer Amerisur Resources PLC, (LON:AMER) has received approval for the acquisition of the Putumay 14 block in Colombia.
Approval from the Agencia Nacional de Hidrocarburos (ANH) has enabled the closing and completion of the farm in agreement (FIA) executed with Gulfsands Petroleum PLC.
The Put-14 block covers 46,361 hectares in the Caguan-Putumayo basin and is located contiguously to the south of Amerisur's operated Terecay block.
John Wardle, the chief executive officer of Amerisur, said the acquisition further consolidated the company’s position in the Putumayo basin and adds additional prospective acreage to its Terecay-Tacacho play.
“The block has further strategic importance in that it extends south towards the Putumayo river and Ecuadorian border. This brings benefits in terms of accessibility for operations and eventual evacuation of produced crude by providing a pathway to access the pipeline systems of Ecuador, in a similar way to the existing OBA [pipeline] system in our Platanillo field," Wardle said.
Amerisur shares were down 1.2% at 15.2p towards the end of the morning session.