Amerisur modified farmout agreement at Coati

The AIM-traded firm said the modification increases the farm in participation of Canacol to a 40% working interest from 20% in the exploration area of the Coati contract.

It said the consideration for the farm in is total carry of $10.75m, of which $6.95m is outstanding in favour of Platino Energy - the operator at Coati.

Amerisur acquired Platino in January for a total consideration of $7m.

Its board said the carry will fund investments associated with Exploration Phase III within the Coati block, and may be allocated towards seismic and drilling operations.

Once the carry is satisfied, costs will be shared at a rate of 60% Platino and 40% Canacol.

“I am very pleased to report this transaction, which reduces Amerisur´s cash spend in the exploration area of the Coati block while strengthening the presence of an active and extremely able partner,” said Amerisur CEO John Wardle.

“Amerisur retains 100% working interest in the evaluation area over the Temblon field, which represents approximately 20% of the block area.”

Wardle said the company remains convinced of the high potential of the remaining area, including the Nasua prospect, with the exploration piece being “very important” in generating future value.

“This increase in Canacol's working interest and the increased carry funds will allow an extensive and thorough exploration programme to be executed in the short term at little direct cost to the company,” he concluded.