Amerisur Resources PLC Operational Update (9667M)

TIDMAMER

RNS Number : 9667M

Amerisur Resources PLC

03 August 2017

3 August 2017

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

Operational Update

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, provides the following operational update from the Platanillo field in the Putumayo region of Colombia.

The Company took a decision to suspend production from all its producing wells on the Platanillo field from 10(th) July to 28(th) July as a result of social issues in the field and region. The protests were associated with the implementation of the Government's 'Sustiticion de Cultivos Ilicitos - illegal crop substitution programme' an important element of the Peace Process agreed in late 2016. The Government's 'illegal crop substitution programme' compensates farmers for the eradication of their coca crop. Amerisur Resources has been assisting in this process, providing local farmers with pepper plants and farming skills such that they can swiftly make the transition to a more socially desirable and profitable crop.

The issues have been resolved by the Government and all the producing wells have been carefully brought back on stream and Group production is now back above 6,000 bopd. Suspended production during the protest equated to a total of 109,000 barrels of oil, all of which remain in the reservoirs of the Platanillo oil field. Field costs during the shutdown period were reduced from $60,000 to $3,000 per day and the Company used the period to perform regular maintenance and enhancement works on the field.

Export volumes via the OBA pipeline are currently 5,000 barrels of oil per day ("bopd") and where production exceeds this level, excess crude oil is being sold at the wellhead at lower net backs. The Company is focused on increasing the production via the OBA and negotiations to achieve this are being progressed positively with Petroamazonas.

Drilling rig Serinco D10 is currently being moved over the cellar for well Platanillo-25 on Pad 2N. It is expected to spud this well within the next 2 weeks.

The Company is targeting an exit production rate for 2017 in excess of 7,000 bopd which it continues to believe is achievable based on the current drilling plans. As a result of this temporary suspension of production which has now been resolved, guidance for average daily production for 2017 has been put under review and an update will be provided at the interim results in September.

Competent person: 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.

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.

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 
 
 
 

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 6100 BOPD. 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. A 40% working interest in contract Put-9, acquired from Talisman Colombia, 50.5% of Tacacho and 100% of Terecay acquired from Pacific are currently awaiting approval by ANH. It has a diverse portfolio of longer term exploration assets.

www.amerisurresources.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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August 03, 2017 02:01 ET (06:01 GMT)