Amerisur keeping hold of Fenix block with no farm out

South America-focused oil and gas group Amerisur Resources has decided not to farm out its 100 per cent-owned Fenix block in Colombia and has terminated all discussion with PetroGranada.

"The Fenix block is an exciting prospect in our portfolio and the board believes the results of the new seismic data will support our confidence in the potential of the block," said Chairman Giles Clarke.

"The full ownership of this asset will allow us to maximise value to shareholders at an early stage of the development of this asset."

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The company has begun the purchase of a 59.42km 2D seismic survey in the southern part of Fenix, which will cost around $2.2m. This survey satisfies the exploration commitment of Phase 4 of the contract.

The survey will define two leads aped on existing data which are of a similar style to the adjoining Bonanza field. It is expected to complete by the end of December and the company will process the results in the first quarter of 2013.