The block has an area of 6,600 sq km covering most of the Santiago sub-basin located in the Peruvian Andean Foothills.
The transaction is structured as a farm-in whereby Pacific Rubiales will assume costs of up to $75m to pay for the first and second wells on the block.
M&P will also have the right to recover its sunk costs from future cash flows, which have been estimated at $7.8m.
Pacific Rubiales will take over the operation of the block and the transaction is subject to government and regulatory approvals, as well as legal and financial due diligence.
