Amerisur Resources PLC Ecuador Update (4632C)

TIDMAMER

RNS Number : 4632C

Amerisur Resources PLC

22 January 2018

22 January 2018

Amerisur Resources Plc ("Amerisur" or the "Company")

Ecuador Update

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide an update on agreements in Ecuador for the use of the OBA/RODA pipeline systems for transport of Amerisur crude oil.

On January 19 in the Petroamazonas EP operational base at Lago Agrio, Ecuador, Petroamazonas EP and the Company signed the "Second Cooperation Agreement for the Use of the Oil Pipeline Network of the Amazonian District (RODA)". This agreement defines the terms and conditions for the construction and commissioning of the Chiritza re-pumping station at Km 51+300 of the RODA pipeline from Cuyabeno to the SOTE pipeline at Lago Agrio.

The construction and operation of this re-pumping station is designed to increase the carrying capacity of the Cuyabeno-Lago Agrio export line.

The agreement allows Amerisur, through its Ecuadorian subsidiary, to build and commission the Chiritza station. Once operational, the Company will gain an additional 4,000 bopd of guaranteed minimum carrying capacity, bringing Amerisur's guaranteed minimum carrying capacity to a total of 9,000 bopd.

The principal features of the agreement and its annexes are:

1. Amerisur estimates that the cost of the construction and commissioning will be approximately $3.7mm.

   2.   The cost to Amerisur is capped at $4.0mm. 

3. The investment made by Amerisur is considered a pre-payment of the existing transport tariff over the first 5,000 bopd transported. Hence the Company will recover the investment made at Chiritza.

4. The second agreement has the same term as the first agreement, i.e. 15 years from the date of the first agreement, 11 June 2015. The agreements may then be extended.

The Company is currently in the process of procuring goods and services to fulfill its commitments under the Second Agreement. Amerisur estimates that the construction and commissioning will be completed in October 2018. This estimate will be updated as procurement of long-lead items continues.

John Wardle, CEO commented:

"I am very pleased to have completed the negotiation of this agreement, bringing important benefits to both Amerisur and Petroamazonas EP. The increase in Amerisur minimum carrying capacity is necessary in light of our continuing work in Platanillo and the upcoming exploration drilling within both Platanillo and the neighbouring blocks around the OBA facility. It is another example of our important and growing strategic relationship with Petroamazonas EP."

ENDS

Enquiries:

 
 Nick Harrison, CFO           Tel: +44 (0)330 
  Amerisur Resources           333 8246 
 Billy Clegg/Georgia          Tel: +44 (0)203 
  Edmonds                      757 4980 
 Camarco 
 Callum Stewart/Nicholas      Tel: +44 (0)20 
 Rhodes/Ashton Clanfield       7710 7600 
 Stifel Nicolaus Europe 
 Limited 
 
 Chris Sim/George Price       Tel: +44 (0)207 
                               597 4000 
 Investec 
 
 Darrell Uden/Marcus          Tel: +44 (0)207 
  Jackson                      653 4000 
  RBC Capital Markets 
 
 
 

Glossary

 
 BOPD   Barrels of oil per day 
 RODA   Red de Oleoductos Amazonas 
 SOTE   Sistema de Oleoductos Trans Ecuatoriano 
 

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. In 2016 Amerisur successfully built and is 100% owner of the strategic OBA oil transfer line into Ecuador.

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 6,100 BOPD. Amerisur also holds a 30% non-operated working interest in the CPO-5 block in the Colombian Llanos basin. The successful discovery well Mariposa-1 is located in that block and is currently undergoing a Long Term Test, producing approximately 3,100 bopd gross. Additionally the Company has a strong position in the Putumayo basin and has a cluster of near term activity assets around the OBA export line including the Platanillo block, Put-8, Put-12 and Coati. Also, the Company holds a 100% working interest in contract Put-9, 100% of Tacacho and 100% of Terecay. It has a diverse portfolio of longer term exploration assets.

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

www.amerisurresources.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 22, 2018 02:00 ET (07:00 GMT)