Amerisur Resources PLC Proposed Disposal of 50% of Put-8 to Occidental (3952C)

TIDMAMER

RNS Number : 3952C

Amerisur Resources PLC

17 June 2019

17 June 2019

Amerisur Resources Plc ("Amerisur" or the "Company")

Proposed Disposal of 50% of Put-8 for US$ 19.1 million to Occidental

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America (LSE: AMER), announces that it has entered into a conditional agreement (the "Agreement") with Occidental Andina LLC ("Occidental") to dispose of a 50% interest in the Put-8 exploration licence ("Put-8") in the Putumayo region of Colombia, for a cash consideration of US$ 19.1 million (the "Disposal").

On 20 March 2019, Amerisur announced that it had exercised a right of first refusal (the "ROFR") to acquire the 50% of Put-8 that it is not already interested in, and the operatorship of Put-8, from Vetra Exploración y Producción Colombia SAS ("Vetra"). On 18 March 2019, Amerisur entered into the Agreement with Occidental which is conditional, inter alia, on the approval by the Colombian National Hydrocarbons Agency (the "ANH") of the transfer of a 50% interest from Vetra to Amerisur, pursuant to the ROFR and the subsequent application for and approval of the transfer of a 50% interest in Put-8 from Amerisur to Occidental by the ANH. The consideration for the Disposal is US$19.1 million in cash, including local taxes, which has been pre-paid by Occidental on the basis that it is refundable if the Disposal does not complete. On completion of the Disposal, taking into account the pre-payment by Occidental and the recovery of local taxes, the net effect of the completion of the ROFR and the Agreement is expected to be broadly neutral to the Company's unrestricted cash position. Amerisur will retain the operatorship of Put-8 following completion of the Disposal.

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Ends

Enquiries:

 
 Nathan Piper, Head of Business Development        Tel: [phone] 
  and Comms                                         8273 
  Amerisur Resources 
 Billy Clegg/Kimberley Taylor                      Tel: [phone] 
                                                    4983 
 Camarco 
 Callum Stewart/Nicholas Rhodes/Ashton Clanfield   Tel: [phone] 
  Stifel Nicolaus Europe Limited                    7600 
 
 Chris Sim/Tejas Padalkar                          Tel: [phone] 
                                                    4000 
 Investec 
 
 Paul Shackleton/Dan Gee-Summons                   Tel: [phone] 
  Arden Partners Plc                                5900 
 

About Amerisur Resources

Amerisur Resources is an experienced Colombian Operator with an extensive, strategic acreage position in the underexplored Putumayo Basin with Occidental Petroleum ("Oxy") and the prospective Block CPO-5 in the Llanos Basin with ONGC. Amerisur is the 100% owner and operator of the OBA pipeline, a key piece of strategic, cross-border export infrastructure delivering oil from the Putumayo in Colombia into Ecuador. Amerisur produces from three fields, Platanillo, Mariposa and Indico that together generate cash flow to fund its work programme.

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June 17, 2019 02:00 ET (06:00 GMT)