Under the agreement, which is subject to the approval of the National Hydrocarbon Agency of Colombia, Petroamerica will farm-in 50% WI in the block while excluding the Tormento field where PSE will retain its 100% WI.

Petroamerica will pay 100% of the capital and operational expenditures of up to a maximum amount of $17m for the next exploration well in order to acquire 50% WI in the block.

The LLA-19 block is strategically located with respect to Petroamerica’s existing Llanos basin blocks, bordering the Los Ocarros block (50% WI), the El Eden block (40% WI), and the El Porton block (50% WI in the exploration area and 25% WI in the Curiara oil discovery).

Exploration drilling at the block is expected to commence as early as the fourth quarter of 2014.