Samarium will acquire a 70% stake in the Putumayo-14 block for nil consideration but will carry Gulfsands for 100% of its minimum exploration programme costs up to a cap of $16.1 million.
The pair have also entered into a joint operating agreement whereby Gulfsands will remain as licence operator with responsibility for administrative functions with Samarium acting as technical operator.
The farminee will also have the option to acquire the remaining 30% to be held by Gulfsands, which will result in the company gaining full operatorship if it is exercised.
However,
