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Amerisur Resources PLC  -  AMER   

Ecuador-Colombia Interconnector Update

Released 07:00 18-Feb-2016

RNS Number : 3954P
Amerisur Resources PLC
18 February 2016
 

18 February 2016

 

 

Amerisur Resources Plc

 

Ecuador-Colombia Interconnector 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 the project to connect the Platanillo field in Colombia with the oil pipeline system in Ecuador, named Oleoducto Binacional Amerisur (OBA).

 

Highlights:

·    Award by Ecuadorian Ministry of the Environment of the environmental license to Petroamazonas EP for the completion of the construction and operation of the  10.8" (nominal) pipeline to the Victor Hugo Ruales (VHR) field from Pad 9S in the Platanillo field, Colombia

·    License approves the construction and operation of the pipeline and the under river crossing within Ecuadorian territory

·    All permissions now granted and as such the Company has begun to drill and install the pipeline under river, expected to take approximately 35 days

·    Company and its contractors have commenced the construction, corrosion proofing, testing and burial of the outstanding 3.9km of pipeline from the VHR-20 location to the point of landfall of the under river crossing

·    Civil works at the OBA reception station and the 5,000bbl reception tank within the VHR facilities in Ecuador are  completed and other piping and instrumentation is 72% completed

·    Operational testing and commissioning of the pipeline, measurement and export pumping systems expected to be performed in late March, followed thereafter by first transport

 

The Company is pleased to announce the award by the Ecuadorian Ministry of the Environment of the environmental license to Petroamazonas EP, operator of the Amazonas Oil Pipeline System (Red de Oleoductos Amazonas -RODA) for the construction and operation of the 3.9 km of 10.8" (nominal) pipeline from the VHR-20 production location to the landfall of the horizontally drilled under river crossing from Colombia. Additionally the license approves the construction and operation of the under river crossing within Ecuadorian territory. The drilling of the under river connection in Colombian territory is approved under a license held by Amerisur Exploracion Colombia Ltda.

 

The Company has begun the drilling of the under river crossing and the installation of the under river pipeline. These operations are expected to take approximately 35 days. Concurrently, the Company and its contractors have commenced the construction, corrosion proofing, testing and burial of the line from the VHR-20 location to the point of landfall of the under river crossing.

 

The civil works at the OBA reception station within the VHR facilities are  complete and the 5,000bbl reception tank is completed, tested and calibrated.  The other piping and instrumentation is 72% completed. In Platanillo, the export equipment is moving to site and will be positioned once the drilling of the under river crossing is completed.

 

The Company expects to perform operational testing and commissioning of the pipeline, measurement and export pumping systems during March, followed thereafter by first transport.

 

An update presentation on the OBA operations is available on the Company website, www.amerisurresources.com.

 

John Wardle, CEO of Amerisur commented:

"The delivery of the OBA has been a key strategic priority for the Company and I am delighted to announce that all of the approvals have now been granted to allow us to complete its construction, which is expected to take approximately 35 days. This is a transformational project for the Company and I look forward to updating shareholders following testing of the pipeline."

 

 

Giles Clarke, Chairman of Amerisur commented:

"I would like to congratulate the executive on this remarkable achievement. The Amerisur shareholders will benefit tremendously from this pipeline in the years ahead as we significantly reduce our operating costs per barrel in the short term and as we grow production in the Putumayo region from multiple blocks in the medium term. Significant value will be unlocked through this, benefiting both our shareholders and the two nations involved. Bi-lateral infrastructure projects between two countries are extremely complicated as the building of the Channel Tunnel between the UK and France demonstrated. Both President Correa and President Santos have shown visionary leadership, and both governments have worked closely to create this major project. Amerisur is proud to play its part".

 

ENDS

 

ENQUIRIES:

 

Billy Clegg/Georgia Mann

Tel: +44(0)203 757 4980

Camarco

 


Daniel Conti/Tristan Lovegrove

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 current production of circa 4,350 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 4,350 BOPD.  The 11,341 hectare block is located in the Putumayo Basin.  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 the Company's 100% owned Platanillo field. In addition, the Company has 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.  The Company has recently acquired 50% working interest in PUT-8 Block adjacent to the west of Platanillo, a 100% working interest and operatorship in the Coati Evaluation Area (Temblon Field) within the Coati Block located in the South West of the Putumayo basin and a 100% working interest and operatorship in the Andaquies Block located in the north east of the 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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Ecuador-Colombia Interconnector Update - RNS