Amerisur Resources Share Discussion Threads

[tsmith2] 11/5/2017 12:54

The Operator, ONGC Videsh, is currently conditioning the well to run and cement a 7" production liner in order to initiate the testing programme.Was there any mention whether this had commenced or not at the AGM?

[lucyp00p] 11/5/2017 12:33

Wow, Al101 you have certainly done your homework. My only suggestion / conclusion is that there has been a decision made to abandon long haul trucking and operate to the constrained levels of the OBA and existing storage facilities while continuing to prospect, and hope for a new pumphouse. With hindsight the question about the status of closed off wells should have been asked but JW did touch on the transport options available outside the OBA and didn't seem particularly impressed with any of them. We know the reserves are understated which is why we see the share price as cheap and worthy of further investment. The suggestion seems to be that mothballed production is periodically reactivated simply to establish that the oil is still there, drop a note to the investors and then cap them off again. Nearly as wasteful as booking out a hotel just to keep Tony and Quid away from the great and the good.

[harrisun] 11/5/2017 11:41

a1

Not 100pc but I reckon its around $20-25 now, as services costs have dropped from the heady heights of average oil sold $111.

Average drilling cost in the Llanos was around $3-3.5m

Articles suggest OCENSA is lowest cost Colombian oil transport system and its under pressure now to have the throughout increased may beeven more competitive

[juuunx2] 11/5/2017 11:36

Il settle for £1 will pay for my extension?

[aceuk] 11/5/2017 11:22

£2 by New Years Day ;-)

[al101uk] 11/5/2017 11:21

£1 by Xmas :-)

[trotting12] 11/5/2017 11:08

Guys ,, if cpo5 flows big and it could ,, it would be a no brainer for our partner to buy us for double , triple our current sp

[al101uk] 11/5/2017 10:49

Apologies for the length of the post, but puts context around the concerns of some around here as regards Plat...


There have been several questions raised (many by Foiled Again and I) about the shut in wells with suspicions that they are no longer producing what was initially claimed and possibly never have produced for any length of time what was announced. So, for those who haven’t been around very long and are getting excited by all the production news and for those who were around back in the “good old days”, but have wiped it from their memories, here are the first few chapters of Amerisurs life:

In September of 2009, just after the company had been renamed from Chaco Resources to Amerisur Resources we had the 2009 interim results and the first of a long list of good news RNS’s. They announced that commercial production had commenced from two wells (Platanillo-2 and Alea-1) for a combined production rate of 350bopd. They also announced that the Igsua-1 drill had completed and that testing was commencing.

On the 17th March 2010 it was announced that the Igsua-1 testing had been suspended due to equipment availability. Isabel-1 was spudded.

On the 1st Jul 2010 Plat-2 and Alea-1 production upgraded was 480bopd.

Igsua-1 came in to commercial production at 100bopd, Isabel-1 was testing at 320bopd on natural flow. The numbers rapidly reduced to 30bopd each and Fenix, declared a complex structure, put in to an indefinite holding pattern. It was later written off to the tune of twenty odd million dollars.

On the 21st Sept 2010 Plat-2 and Alea-1 production were up to a combined 550bopd and on April 2012 the announcement was made that Plat-3 had been spudded. By 6th June 2012 it was producing 2340bopd on natural flow from Pad 9 and placed on commercial production at 1500bopd by 28th June 2012.

Plat-4 spudded 24th June 2012, by the 24th August it was producing 1100bopd on natural flow, commercial production resulted at 500bopd.

Plat-5 spudded September 2012, by October it had been tested in natural flow at 2472 and on commercial production of 1500bopd.

On the 5th Oct 2012 combined commercial production was quoted at 3500bopd, quickly rising to 3800bopd.

Plat-9 spudded and quicky came in to production on the 11th Dec 2012 at a rate of 730bopd, taking overall production to 4342bopd.

On the 24th Jan 2013 Plat-6 was quickly and efficiently drilled and tested 1550bopd in natural flow, but by this time transport issues were starting to bite and production couldn’t be further increased. Total production capacity was estimated at 5400bopd.

On the 18th March 2013 Plat-1-ST had been on commercial production test at 530bopd, Plat-10 was also on test, The Plat field was producing a transport constrained 4700bopd, with a production capacity of 6400bopd.

On the 18th April 2013 Plat-10 was put on commercial production at 1000bopd, taking production capacity to 7800bopd according to the RNS.

On the 6th June 2013 Plat-11 was producing 1500bopd, Alea-1-ST was producing 700bopd and the total estimated production capacity was up to 8500bopd. Spudding at Plat-12 was announced.

By the 16th July Plat-12 was producing natural flow at 2371bopd, production capacity remained at 8500bopd.

On the 26th Sept, Plat-12 goes in to commercial production at 1450bopd and production ramps up to 7500bopd.

On the 29th Oct 2013, Plat-14 is completed; rig is transported to drill Plat-7.

On the 30th Dec 2013 another 1300bop commercial production from Plat-7 (what happened to Plat-14), rig mobilised to drill Plat-16.

On the 13th Feb 2014 Plat-16 tests at 320bopd (and appears to have been put on commercial production at that level). Plat-17 spudded. Production now stands at 7300 with production capacity well in excess of that.

On the 24 March 2014 Plat-17 put on production at 1100bopd, Plat-15 spudded.

On the 22nd April 2014 we get this quote from the Results for the period ending 31st Dec 2013

“2013 has seen great progress with the Company’s drilling and production programme, with success across our assets. The current production is at a rate exceeding 7,000BOPD, albeit constrained by export options, which we are working very hard to remove.”

On the 25th April 2014 it is reported that, as regards Plats drilling program "... once completed it will support a prudent plateau oil rate in the absence of export constraints of some 12,000 BOPD"

On the 19th June Plat-15 put on commercial production at 439bopd and Plat-18 spudded.

On the 26th Aug 2014, Plat-20 is put on commercial production at 360bopd, rig mobilised for Plat-20.

On the 7th Oct 2014 Plat-20 put on production at 400bopd. Libelula-1 spudded.

And on the 8th April 2015 Libelula-1 was suspended following mechanical problems, to be re-entered in 2016.

This appears to have been the beginning of the end, the oil price started to fall and by the 7th September 2015 average production was down to 4337bopd. The wells shut in on commercial grounds were receiving chemical treatments to improve their production profile.

Lotto-2 was spudded, but focus quickly changed and in the interims dated 28th September 2015 focus was firmly on the OBA and new acquisitions. The shut in production barely warranted a mention.

Lotto-2 came in as a non-event and was suspended pending further analysis.

It was April 2016 when the next spud of a prospect happened and that was Jaguaret-1 in Paraguay which has since been turned over to people in lab coats for further ongoing analysis.

Plat-8 followed, spudded on the 23rd June 2016.

At the interims dated 15th September 2016 it was announced that Plat-20 had been recompleted and production was at 775bopd (up from the initial commercial production levels), Plat-8 spudded and successfully completed during July 2016 was in production at a rate of 410bopd.

23rd December 2016 Plat-24 was spudded and started to produce at a rate of 420bopd on the 24th January 2017.

On the 30th March 2017 it was announced that Plat-22 would be put on commercial production although I could not find any numbers for it.

On the 21st April 2017 Plat-21 was spudded.

And so here we are in 2017 targeting an exit rate in excess of 7000bopd and looking like we are relying on the Mariposa-1 drill on CPO-5 to do it. That is less than we were already producing in 2013 and substantially less than our “unconstrained commercial production” back then. All the shut in production has apparently been opened up again, but we’ve only seen one of these wells actually announced. We no longer hear about our transport restricted production capacity and the chemical stimulation of our wells is still ongoing 18 months after it was first announced.

At least one well has seen production declines of 75% although after successful chemical treatment it has recovered somewhat, Two others have been targeted, why?

I’m quite frankly amazed that so few of us appear to have any concerns over the production profile at the Platanillo field.

I’m not saying that the company must turn the taps on, even if they could, obviously there are still transport issues. An update on all of that production and what, if any, work is to be completed on those wells to restore them to their former glory is all I ask.

All I want is clarity, the fact that the company doesn’t appear to want to offer it concerns me.

The real kicker to all of this is that we are undervalued even ignoring the history above. Quite what happens to the share price if all of that production is available to bring back on line, alongside the potential of CPO-5 and our other assets is quite frankly what dreams are made of.

On the other hand if there are production issues at Plat, then that is absolutely share price sensitive and we should be able to make educated estimates of the likely production in possession of that fact.

All the dates quoted are RNS dates, you can double check all of my numbers by going to the LSE (.co.uk) website. It has a full RNS history of Amerisur which neither the company, nor anyone else seems to keep.

The list is not exhaustive, I merely skim read RNS’s that were updates or named wells in the title, occasionally glancing at interims and annual results.

[lucyp00p] 11/5/2017 10:26

Just read post 1155 again. Too funny

[al101uk] 11/5/2017 09:20

fadilz,

The Swindon41 says "...northern Llanos basin where good infrastructure exists and so a big discovery here won't rely on the OBA pipeline into Ecuador......"

The pipeline could be this one:

"About OCENSA - Founded in 1994, OCENSA is the largest oil pipeline in Colombia and constitutes the backbone of the country's oil transportation system with 836 km of pipeline, 19 storage tanks, and an exclusive tanker loading unit in the maritime terminal at Coveñas, Colombia's most important oil & gas port, with a pumping capacity of 60,000 barrels per hour."

"As of mid-2011, the Ocensa pipeline was carrying 560,000 barrels per day (bpd) of oil from the Llanos basin, representing 60% of the country’s total oil production."

Looking at some data from companies back in 2011, the transport and lifting costs are likely to be around $25-$30, based on using the pipeline. So Net back of $15 sounds reasonable.

Some of the numbers around production in that area are staggering...

(this is a very old report from the late 90's)..

"Cano Limon field lies in the northern Llanos basin near the Venezuelan border in Occidental's Cravo Norte block. It covers approximately 37 sq km and produces 29°-30° gravity oil from deltaic sands in the Mirador formation at depths averaging 7,500 ft. Some wells are capable of producing in excess of 10,000 b/d of oil. The reservoir has an average porosity of 25% with permeabilities of several darcies and reserve estimates slightly in excess of 1 billion bbl of oil.
Occidental continues drilling operations in Cano Limon field and reported production of 203,363 b/d for March. Over the past year, approximately 20 development wells were successfully completed on the Cravo Norte block, and total oil production for 1995 was reported at 71.6 million bbl."

[harrisun] 11/5/2017 09:10

Rubiales Field had proven reserves of 4.38billion barrels

www.energy-pedia.com/news/colombia/new-151361

[harrisun] 11/5/2017 08:54

Strange seeing some selling before possibly transformational CPO-5 result.

ONGC describe the find as EXCITING DISCOVERY

A large find there could be worth more than the existing Amerisur market cap. ONGC will not want to share the find.

[fadilz] 11/5/2017 08:16

al101uk, are you able to elaborate on the infrastructure around CPO-5, and in particular the production costs?

[charlieeee] 10/5/2017 23:13

Guys, the credit needs to go to Swindon41 on iii, who attended the AGM, documented what was said and then commented on it and finally, generously gave me permission to copy the resulting post from iii to here.

Apologies for any confusion caused, but I hope that clarifies.

[juuunx2] 10/5/2017 21:27

Great post Charlieee nice to have your input

[lucyp00p] 10/5/2017 20:56

While I commend the latest AGM summary I did think his 5 year plan question was misdirected. GC thinks of the company as an investment. JW thinks it's his baby. Also, I feel the criticism of the pastries was a tad harsh.

[tonyrelaxes] 10/5/2017 20:41

ML. I can't see anything rude or troublesome in your question.

I'm sure Charlieee, whoever she/he was, wouldn't even consider THAT hotel for anything other than the AGM.

[moneylender] 10/5/2017 19:24

Whats rude about my question? If Charlieee is who I think she is then I am putting a face to her name, nothing more.

[warre] 10/5/2017 19:22

ML, my suspicion is that you shouldn't expect an answer to your question that isn't rude and I commend post 1351 as being the best summary of the AGM yet!

[moneylender] 10/5/2017 19:10

charlieee did we meet at the AGM you were there with your husband?

[bigwavedave] 10/5/2017 16:45

Thanks Tony.

[lucyp00p] 10/5/2017 16:10

Alex Snow was to my right. He's a big lad

[tonyrelaxes] 10/5/2017 16:08

No question or mention during the meeting of the For Sale advert.
GC did speak to a number of attendees afterwards, and was still doing so when we left about 30-40 minutes after the meeting closed. Maybe one of them raised the point and can/will advise us.

Alex Snow was there according to GC but not on the top table. Briefly mentioning him, GC waved a hand toward the dark suits on one side of the room.

JW declined our little pub crawl, saying he had to be in London at 3.00pm yesterday.

[bigwavedave] 10/5/2017 15:42

Back to the AGM...was any more said about "Amerisur up for sale" as per GC's Evening Standard interview? Was Alex Snow present? Did he have anything to say?
And is JW doing any additional presentations to institutional investors? He normally does, post AGM.

PS: crude up on US inventory data.