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."

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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.