Shares in Aim-listed oil and gas group Gulfsands Petroleum popped by more than a third at one point this morning after the group announced it has signed a farmout agreement in Colombia.
Gulfsands has signed both a farmout arrangement and a joint operating agreement with Samarium Energy & Resources Corporation for its PUT-14 contract.
Under the deal, which was for no consideration, Samarium will initially take a 70 per cent participating interest interest in the PUT-14 contract and will assume the work programme costs.
Gulfsands has also granted Samarium an option to acquire the remaining 30 per cent interest. When granted the contract, Gulfsands agreed to carry out a minimum work programme that amounts to $16.1m (£13.1m).
The deal has essentially de-risked the Colombian programme, which is not a core asset for the Syria-focused group.
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The company is an interest holder of two prospective blocks adjacent to prolific producing regions of Colombia.
Gulfsands' stock was trading up 13 per cent at the time of writing to 3.25p, but reached a day high of 3.88p, a more than 34 per cent uplift.
In March its share price surged, though the group released a statement saying it was "not aware of any reason for this movement".