Amerisur Resources PLC Operational and production update (2677X)

TIDMAMER

RNS Number : 2677X

Amerisur Resources PLC

09 August 2018

9 August 2018

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

Operational and production update

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide an operations update including unaudited production from the Company's two producing fields for the month of July 2018.

Chiritza

The Chiritza re-pumping station project continues to advance ahead of schedule. On 6 August 2018, the tie-in of the Chiritza manifold to the RODA main line was successfully performed. The Company is currently installing the booster pumps and control systems. The Chiritza station is expected to be commissioned in September 2018, on budget and ahead of schedule. Once completed Amerisur will have access to a minimum daily carrying capacity of 9,000 bopd through the RODA system. The Company wishes to express its gratitude to Petroamazonas EP, RODA and the Ecuadorian Government for their support in expediting this highly complex engineering operation.

Platanillo-22 Workover

Further to the announcement on 24 July 2018, the initial phase of the Platanillo-22 workover has been successful. The logs run in the well indicated that a severe degradation of the cement sheath had occurred, giving direct communication to a deeper aquifer. This communication served to reduce oil production significantly while increasing water cut and flowing water into the oil leg of the reservoir. The reason for this degradation is not known. A cement squeeze operation was performed, and subsequent logs indicated that full integrity between the oil leg and the aquifer has been recovered. The well was recompleted and partially perforated on 2 August 2018 in order to confirm the isolation at low production rates. The well is now producing approximately 360 bopd at a low pump rate, and the water cut is at 3.2% and steadily declining. This water is assumed to be a product of the water flowed into the oil leg while the aquifer cross flow was occurring. The well will remain under observation at these parameters for approximately a further five days, after which a further perforation and pump increase will be performed to increase production rate.

Pintadillo-1

The Company expects to mobilise Rig D-10 to drill Pintadillo-1 once the ongoing work on Platanillo-22 is completed. A further announcement will be made on the date of spud. The N Sand anomaly at Pintadillo is one of four such anomalies identified by the Company in the central part of the Platanillo block. It is estimated to hold P50 resources of 11.44 mmbo.

July production

Total production during the month of July was 150,911 BO, equating to an average daily production of 4,868 bopd, with peak daily production of 5,119 bopd. July production was impacted by the work on Platanillo-22. Total OBA export volume was 121,785 BO, equating to an average daily throughput of 3,929 BO, with peak daily throughput of 4,547 BO. The data has not yet been approved by the Colombian Agencia Nacional de Hidrocarburos (ANH) or national customs and tax authorities DIAN and may be subject to revision.

John Wardle, CEO of Amerisur Resources said:

"I am delighted the Chiritza re-pumping station upgrade is on budget and ahead of schedule and am grateful to the Ecuadorian Government for their support in this complex engineering project. July production was impacted by the work on Platanillo-22, which to date has been successful. We are ready for the upcoming drilling programme and I look forward to updating shareholders on its progress."

ENDS

Enquiries:

 
 Nick Harrison, CFO                  Tel: [phone] 
  Amerisur Resources 
 Billy Clegg / Georgia Edmonds       Tel: [phone] 
  / Kimberley Taylor 
  Camarco 
 Callum Stewart / Nicholas Rhodes    Tel: [phone] 
  / Ashton Clanfield 
  Stifel Nicolaus Europe Limited 
 Chris Sim / Alexander Ruffman       Tel: [phone] 
  Investec 
 Paul Shackleton / Dan Gee-Summons   Tel: [phone] 
  Arden Partners plc 
 

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 two fields in 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 producing field in the Putumayo basin, and holds a 30% non-operated working interest in the CPO-5 block containing the Mariposa-1 producing field in the Llanos basin.

Amerisur has a strong position in the Putumayo basin and has a cluster of near term activity assets around the OBA export line.

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

These assessments are made in accordance with the standard defined in the SPE/WPC Petroleum Resources Management System (2007).

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 32 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Glossary

 
 BO     barrels of oil 
 bopd   barrels of oil per day 
 mmbo   millions of barrels of oil 
 

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August 09, 2018 02:01 ET (06:01 GMT)