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Amerisur Resources PLC  -  AMER   

Coati Update

Released 07:05 17-Jun-2016

RNS Number : 5131B
Amerisur Resources PLC
17 June 2016
 

17 June 2016

 

Amerisur Resources Plc

Coati 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 Coati contract area, Colombia.

The Company is pleased to announce the signing of a modification of the farm out agreement with Canacol Energy Colombia SA ("Canacol"), a subsidiary of Canacol Energy Ltd. of Canada. The modification increases the farm in participation of Canacol from 20% to 40% working interest in the exploration area of the Coati contract. The consideration for the farm in is a total carry of US$10.75 million, of which US$6.95 million is outstanding in favour of Platino Energy ("Platino"). Platino is operator of the Coati contract and a wholly owned subsidiary of Amerisur Resources Plc, having been acquired in January 2016 for a total consideration of US$7 million. This carry will fund investments associated with Exploration Phase III within the Coati block, and may be allocated towards seismic and drilling operations. Subsequent to the carry being satisfied, costs will be shared 60% Platino (Operator), 40% Canacol.

John Wardle, CEO of Amerisur commented:

"I am very pleased to report this transaction, which reduces Amerisur´s cash spend in the exploration area of the Coati block while strengthening the presence of an active and extremely able partner. Amerisur retains 100% working interest in the evaluation area over the Temblon field, which represents approximately 20% of the block area. We remain convinced of the high potential of the remaining area, including the Nasua prospect and so the exploration piece is very important with respect to generating future value. This increase in Canacol's working interest and the increased carry funds will allow an extensive and thorough exploration programme to be executed in the short term at little direct cost to the Company."

 

In accordance with the AIM Rules - Note for Mining and Oil & Gas Companies - June 2009, the technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 31 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

ENDS

Enquiries:

 

Billy Clegg/Georgia Mann

Tel: +44 (0)203 757 4980

Camarco

 


Callum Stewart/Ashton Clanfield

Stifel Nicolaus Europe Limited

Tel: +44 (0)20 7710 7600



Chris Sim/George Price

Tel: +44 (0)207 597 4000

Investec




Darrell Uden/Daniel Conti

Tel: +44 (0)207 653 4000

RBC Capital Markets


 

 

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 from the Platanillo field in southern Colombia. 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, whichhich produced an average of 4,437 BOPD during 2015.  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 55 kilometres 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 the 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 (Amerisur 60% and operator) 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 approximately 4.8 million hectares covering four 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.

 

www.amerisurresources.com 

 


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