Amerisur Resources Share Discussion Threads

[oilandgas1] 04/3/2018 20:25

Drilling 2018 programme:

Three well drilling programme of N Sand Anomaly targeting 18.8 MMBO of resources to commence in Q1 2018.

We remain very busy targeting up to 16 gross wells by the end of 2018 focusing on
Capex. Wells. MMBO

Putumayo 9, 17m. 3. 53.5
Putumayo 8. 10.5. 3. 26
CPO-5 5m. 2-3. 142
Putumayo 12, 11m. 3. 212
N Sand Platanillo 24.5. 5. 18.8
(Inc Pad 2N)

all fully funded from existing cash resources & cash generated from activities at $45 oil.

[bdgm] 04/3/2018 19:56

The current testing / completion tender suggests a tentative start date of March 2018 for Indico.

There is also the tender documents for the SOL - 1 Drill pad and road

[davwal] 04/3/2018 18:37

No specific start date has been published by ONGC Videsh for drilling. I think the previously tendered site construction work must be underway now, presumably to get drilling started late March/early April.

Note, the current testing/completion tender is actually a retender.

[moneylender] 04/3/2018 17:16

Has there been any indication as to when Indigo will be drilled?
Interesting to note davwal's post to not tenders are are out for said well.

[oilandgas1] 04/3/2018 16:37

We now need a drilling programme update and lay out the strategy for production increases this year to get from below 7k to above 10k ( target is 12k but highly unlikely given Amers management record)

Updates on expansion into 3 fields and reserves update , CPR must be due!

[davwal] 04/3/2018 16:18

Tender is out for testing/completion of Indico-1X with the objective of testing four layers down to circa 13,000ft, although if the first layer tested is good the others might be scrubbed. Work is currently scheduled to commence during April.
So, however it goes it’s not long to wait. Fingers crossed for another goodun.

[davwall] 04/3/2018 12:12

Mariposa-1 oil is effectively being sold at the gate, under a contract for the duration of long-term testing. It will be interesting to know what the eventual transportation plan is post LTT. So far there's been no indication of ONGC Videsh laying a connecting pipe so presumably it will be trucked to the nearest access/transfer point.

[mintington] 03/3/2018 22:09

https://oilprice.com/Energy/Energy-General/Could-These-Discoveries-Revive-Colombias-Oil-Industry.html

[juuunx2] 03/3/2018 20:59

Lucy... looks like you were spot on about distillery. Where you gonna get cheap spirits from now! Anyway back to topic come on Amer give us a good week.

[tyler durden1] 03/3/2018 16:23

Amerisur's expenditure will be nothing like forecast. A little caveat in March 2017 presentation: ''Focusing on the Caguan-Putamayo Basin"

Showed assets-a graph also showed on page5
''Whilst blocks are in force majeure no capital expenditure will be incurred"

PUT12 Tacacho Put8 Coati Put9 Terecay and Mecaya show Suspended FM. Same document page2 printed ''ANH approval of the cessation of interest from Pacific to Amerisur may take up to 120 days'' don't remember any RNS confirming approval by ANH [March 2017]. Wonder if BoD were happy not to press ANH as another convenient way of limiting expenditure and news another bullet against RH's drip drip disposal over such a long timespan.
So 120 days, 4 months? Any wells or expenditure on the above blocks will not take place. Convenient for Amerisur when RH selling was underway

[kaos3] 03/3/2018 15:07

what I find important is that there is a lot of heavy oil around and they have light oil. wextremly needed to mix it with heavy one for the righ bland. Local premiums should be obtained

[tyler durden1] 03/3/2018 13:09

Worth checking that link

[harrisun] 03/3/2018 13:01

To finally assist this relates to original Petrodorado communication

Notice on this map the following comments:
Los Llanos Basin
Moriche (divesture)
CPO-5
Existing infrastructure

So go to this link click on the map to enlarge it. hey presto

[harrisun] 03/3/2018 09:36

CPO-5 is in jurisdiction of Barranca de Upia.

A little bit about Barranca de Upia

Since end of 2007 discovery of oil in well CORCEL radically changed economic activity towards oil.

Petrominerales did not have a good reputation with the community though.

From 2005:
"There are seven commercial oil production basins in Colombia - the Upper, Middle, and Lower Magdalena Valley; LLANOS; Putumayo; Catatumbo; and the Guajira basins. Oil extracted from fields in these basins is transported through Colombia's five oil pipelines, four of which connect production fields to the Caribbean port town of Coveñas through the Caño Limon - Coveñas pipeline. These are the central Ocensa pipeline, which transports oil from the Cusiana-Cupiagua fields, the 490-mile Caño Limon pipeline, and the Alto Magdalena and Colombia Oil pipelines. The fifth pipeline, the Transandino or Trans-Andean, transports crude from the Orito field in the Putumayo basin to Colombia's Pacific port of Tumaco."

[harrisun] 03/3/2018 09:24

TGG

Was not referring specifically to you but the Llanos basin has the most developed oil infrastructure in Colombia.Most were not going to drill further there and originally CPO-5 was though to be heavy oil play. They under drilled and found light oil.Take a read of some of Geopark's communications as the Llanos has been developed for over 70 years as far as oil exploration and production.

Mariposa-1 was drilled to 11,556ft at a cost of approximately $6.5m(gross) so only 30% contribution where Amerisur were shrewd enough to have tax write offs too in the form of $57m of tax losses giving a potential tax saving of approx. $20m to Amerisur.The important thing about Mariposa-1 is that the level of oil it is currently producing, is from "A limited perforation interval". In fact that limited perforation is just 10% of the net pay area discovered, so the potential on that well exceeds Yatay-1 which did over 10,440bbls a day.

Major pipelines run through Llanos was THE major producing area. Unlike cross border pipeline connections that can take forever, running interconnector easier.The ODC pipeline which feeds right up to CPO-14 and the Bicentenario pipeline that straddles the Venezuelan order with interconnectors at various interval and ODL pipeline Oleoducto de Los Llanos.

Geopark are active in the Llanos so there oil is going somewhere!

hxxp://www.amerisurresources.com/images/rns-pdfs/Amerisur_Colombia_analyst_presentation.pdf
hxxp://www.anh.gov.co/Asignacion-de-areas/Documents/2m_tierras_170217.pdf

[thegreatgeraldo] 02/3/2018 23:13

harrisun
2 Mar '18 - 21:20 - 7420 of 7422
0 2 0
Seems some posters are deliberately trying to create a downbeat picture and against facts

1 CPO-5 needs little infrastructure as it under drilling existing oilfield so facilities already exist

Hello...... care to back up your above claim?

[thegreatgeraldo] 02/3/2018 22:16

harrisum,

Are you a bit muddled & thinking of Loto?

[thegreatgeraldo] 02/3/2018 22:04

harrisun
2 Mar '18 - 21:20 - 7420 of 7420
0 2 0
Seems some posters are deliberately trying to create a downbeat picture and against facts

1 CPO-5 needs little infrastructure as it under drilling existing oilfield so facilities already exist

....referring to me I suppose. What facilities are already in place? What is the current field producing & who owns it? & why did they let go of the deeper horizons? I'd assumed CPO-5 was undrilled.

[harrisun] 02/3/2018 21:20

Seems some posters are deliberately trying to create a downbeat picture and against facts

1 CPO-5 needs little infrastructure as it under drilling existing oilfield so facilities already exist

so the cost there is in drilling and even then only 30% of it.

Offsetting that is Amerisur's aprox 1000 bbls a day oil revenue from it, that at even $55 is $55,000 cashflow a day $385,000 a week less testing costs and royalties, but still a chunk of money.

Remember that only 12ft. of the 120ft. nett pay zone was perforated to get the above result.

[thegreatgeraldo] 02/3/2018 21:03

Forget any idea of a divi if they're going to advance CPO-5 - it's not just a case of funding a couple of extra wells, there'll be need for processing plant, storage, flowlines & maybe a hook-up to a pipeline to fund as well.... & quite a few wells......money which would be well spent though!!

[al101uk] 02/3/2018 20:38

Yellowdog,

Capital expenditure hits the balance sheet, so as TGG said it doesn't affect the P&L. That's because it's an investment, it creates an asset with a value. So you exchange a liquid asset (cash), for a less liquid asset (oil reserves) and hopefully the extractable oil reserves are worth more over time than the money spent on developing them.

So what tends to happen is that the cost of the drills is capitalized in the short term and depreciated over the life of the asset (depreciation can be seen in the P&L and in Amerisurs case is rolled in to the "cost of sales"). If the asset then doesn't provide any oil or not enough oil, what remains is written off in a non-cash write down at a later date.

According to the latest presentation (May AGM) the capital expenditure for 2017/18 was $65 million. I'm not sure where you're getting $85 million for 2017 from. $65 million could be funded from cash and profits from what is likely in the 2017 results alone. I'm finding it difficult to believe they spent a huge amount of capex last year as they seem to have been a dragging their feet vs the planned drilling campaign.

The other reason it's difficult to believe an $85 million capex for 2017 is that they have been talking about being fully funded at $45 oil from operational free cashflow for some time. What sounds more likely is around $32 million of capex for 2017 and the same for 2018, with the surplus profits added to the balance sheet to enlarge our cash position.

The money spent will at least in part be used to develop known reserves, so it's a virtual certainty that it won't be written off (it won't be a "loss").. for a start some of it would be to fund our part of the CPO-5 well, a well I'm sure you agree is worth well in excess of it's drilling costs.

[juuunx2] 02/3/2018 20:16

Yes Dav if I remember he moved awkwardly in his seat after it was asked. If anything his body language gave it away before he spoke.

[davwal] 02/3/2018 19:22

The look of horror on GC’s face at Malcy’s suggestion during the interview that Amer might have the cash to award a divi to shareholders was priceless. I doubt we should count our chickens just yet...