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Amerisur Resources PLC  -  AMER   

Operations Update

Released 07:00 07-Sep-2015

RNS Number : 2044Y
Amerisur Resources PLC
07 September 2015
 

 

07 September 2015

 

 

Amerisur Resources Plc

 

Operations Update

 

 

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America, is pleased to provide an update on operations in Colombia, Ecuador and Paraguay.

 

Highlights

·     Production in the period May to end August totalled 533,428 barrels of oil ("BO"), or an average of 4,337 barrels of oil per day ("BOPD")

·     Operational netbacks ranged from US$25.95/bbl at a sales price of US$59.25/bbl to US$11.95/bbl at sales price of US$43.77/bbl from February to July

·     Interconnector pipeline - Ecuador ground preparation works within the Victor Hugo Ruales principal facilities completed

·     Ecuadorian Environmental Ministry has approved terms of reference of the license for pipeline construction from the Ecuadorian border to the location VHR-20

·     Construction of the interconnector pipeline expected to be completed in December, and operational at year end

·      CPO-5 Loto-2 well to spud mid-September

·      CPO-5 408km2 3D seismic acquisition programme completed

·      In Paraguay, Ministry approved force majeure application for drilling of Jaguarete-1 until May 2016

 

Colombia

 

Platanillo

Production in the period May to end August totalled 533,428 BO, or an average of 4,337 BOPD. All production volumes are currently trucked to Orito. Operational netback to the Company varied with oil price from February to July, from a maximum of US$25.95/bbl at a sales price of  US$59.25/bbl to US$11.95/bbl at sales price of US$43.77/bbl. Further operational savings are being implemented with regard to fuel costs, with the trialling of a combined produced gas/oil burning system. Initial results are promising.

 

On the interconnector pipeline, in Ecuador, ground preparation works within the Victor Hugo Ruales ("VHR") principal facilities have been completed and civil works are ongoing, including the construction of the 5,000bbl holding tank, reception skids, export system, laboratory and associated facilities.

 

The Ecuadorian Environmental Ministry ("MAE") has approved the terms of reference of the license required for pipeline construction from the Ecuadorian border to the location VHR-20. Accordingly the Environmental Impact Assessment for that license is being prepared by the Company and will be submitted shortly. It is expected that the license will be granted in the next 60 days, and hence will not impact the timeline for first transport.

 

Amerisur estimates that construction of the interconnector pipeline "Oleoducto Binacional Amerisur" ("OBA") will be completed in December,  and operational at year end.

 

CPO-5

The 408km2 3D seismic acquisition programme within the north-eastern sector of the block has been completed and data is currently being processed. Petro Dorado SA (PDSA - a 100% owned subsidiary of Amerisur) and ONGC Videsh Ltd (Operator) have elected to perform a review of all geophysical data within the contract area, and as such have contracted a specialist group to integrate, interpret and review the entire block.  This review is estimated to take up to 4 months. The partners consider this an important value-adding exercise given the large block area, the variety of traps indicated, the positive results from previous wells and the recent and continuing exploration success in adjoining blocks, such as Llanos-34 to the north.

 

Following road repair works on the routes into the Loto-2 location, from Paratebueno and Villavicencio, the rig Tuscany 109 has been contracted and is currently being mobilised to drill Loto-2. Spudding of this well is expected around mid-September, with log data available approximately 30 days later. On positive testing results from Loto-2 the partners plan to immediately drill Loto North-1, a high step out well within the same structure from the same location as Loto-2. A further well, designed for disposal of produced water may then also be drilled.

 

 

Paraguay

 

Subsequent to the application made by the Company, the Ministerio de Obras Publicas y Comunicaciones (MOPC) has approved an appliocation of force majeure, effectively extending the period to drill Jaguarete-1 until May 2016.

 

John Wardle, CEO of Amerisur commented:

 

"I am very pleased with the progress on the OBA pipeline project, which will have an important impact on our transport costs and hence netbacks in this period of low oil sales prices.  We are on track for first oil this year. The Loto project in CPO-5 is also very encouraging and we look forward to the results from that well. The well is targeting a structure known to contain oil in an area of the Llanos basin which has been extremely prolific in terms of discoveries and production, with two further discoveries announced in recent days by other operators. I look forward to reporting further progress in our Interim Results statement at the end of this month.

 

 

ENDS

 

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 29 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

 

 

ENQUIRIES:

 

Billy Clegg/Georgia Mann

Tel: +44(0)203 757 4980

Camarco

 

 

Jeremy Low/Daniel Conti

Tel: +44 (0)207 653 4000

RBC Capital Markets

 

 

Chris Sim

Tel: +44 (0)207 597 4000

Investec

 

 

Notes to Editors

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay and production of circa 4,700 BOPD. Amerisur's strategy is to acquire, explore and develop large acreage positions in major under explored basins located in South America.  The Company's distinctive approach has been to own 100% of its assets at early stages in order to have full control over the fields' development.  That requirement is now being relaxed as a sound production baseline has been established and in response to the widening opportunity set to which the Company has access.

 

In Colombia, the Company is operator and has a 100% working interest in the Platanillo block which includes the Platanillo field which is currently producing circa 4,700 BOPD.  The 11,341 hectare block is located in the Putumayo Basin.  In addition, the Company has a 60% working interest and operatorship in block Put-12, a 55,000 hectare block which is adjacent to Platanillo and shares its geology and a 50% working interest in Put-30 a 38,514 hectare block, approximately 55km to the north of both the Company's 100% owned Platanillo field. The company has recently acquired a 30% working interest in the CPO-5 contract, located in the Llanos basin and a 49.5% working interest in the Tacacho contract, located in the Caguan-Putumayo basin.

 

In Paraguay, Amerisur is the largest acreage holder in the country, with 5.2 million hectares covering five 100% owned oil and gas permits in the Paraguayan part of the Chaco and Parana Basins.

 

John Wardle is CEO of Amerisur, having worked in Colombia since 1994, first for BP Exploration and subsequently for Emerald Energy.  The Company is chaired by Giles Clarke and is listed on the AIM Market of the London Stock Exchange.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Operations Update - RNS