Amerisur Resources (LON:AMER) has entered into a Commercial Agreement with Reto Petroleum, giving it the right to acquire a working interest in the Fenix Exploration and Production contract (100% owned and operated by Amerisur) in Colombia in exchange for completing certain work programs and investments.
Phase 1 of the agreement contemplates the drilling of 10 wells to appraise and develop the Isabel structure. These wells will be funded 100% by Reto. Once this work program is completed to Amerisur´s satisfaction, the Company will cede a 20% undivided working interest in the Fenix contract to Reto, subject to regulatory approvals.
The drilling operations associated with Phase 1 must be completed within 18 months of the effective date of the agreement.
Phase 2 of the Commercial Agreement gives Reto the right, subject to satisfactory completion of Phase 1, to earn an additional 10% undivided working interest in the Fenix block in exchange for the funding (100%) of the acquisition and processing of a seismic program of at least 75 line kilometers within the Fenix contract area. In the event that Reto does not exercise this right, they will fund 20% of this seismic program.
Amerisur Exploracion Colombia, the Company branch established in Colombia will remain the operator of the contract.