Amerisur Resources buys Petro Dorado South America

Amerisur Resources announced the acquisition of Petro Dorado South America SA, a subsidiary of Petro Dorado Energy for a total payment of $6m.

The oil and gas exploration and production company said the payments will be made in three instalment, with $3m upon closing, and two further instalment of $1.5m at three-monthly intervals.

The consideration may be paid in cash or in Amerisur stock, based on the 5-day volume-weighted average price preceding the due date for each instalment, at the election of Amerisur.

Amerisur will acquire a 30% working interest in the CPO-5 contract, located in the Llanos basin and a 49.5% working interest in the Tacacho contract, located in the Caguan-Putumayo basin.

Chief executive officer John Wardle said: “Through this transaction we have accessed prime Llanos acreage in the form of the CPO-5 block, with near-term drilling on a proven discovery at the Loto structure, and considerable further upside for light and medium oil within the block, which is on trend with the most important recent discoveries in the basin.”

At 1157 BST, shares were down 2.6% at 35.80p.