Amerisur Resources Share Discussion Threads

[charlieeee] 22/1/2018 09:36

Well, life certainly is about glass half full/glass half empty.

Using objective criteria, the OBA was an investment of $18 million and is said to generate $10 per barrel additional revenue.

It is just about at payback and from now on in, until 2030, even on the original minimum 5000, it increases profitability by some $18 million per annum.

It was a first class strategy and perhaps the options were premature (regrettably falling in a period of low POO) but ultimately, shareholders benefit far in excess of the options.

As far as RH is concerned, moving from this to PANR in a fit of green eyed rage and envy has not been successful and I doubt if Mintails will ever be another Medusa.

[mintington] 22/1/2018 09:24

Another brick in the wall then....if we are sitting at 12000 bopd plus in 9 months time we should all be happy....now where has the rig gone following Plat27 completion...c'mon JW advise us

[davwal] 22/1/2018 09:13

Lucy, I suspect the 10k was made possible by PAM reducing their own output during a short window for well maintenance.

[lucyp00p] 22/1/2018 09:08

So, we lost 2 years after the pipeline capacity was modified from 7k to 70k during which time output was trucked at $23 pb, then the new pipeline was started and all the pigs got their noses in the trough with fat option rewards, causing Rex to flatline the share price 18 months later it was completed and has only just shipped to the original specs and only in 9 months will it be able to run at 13% of capacity.I say double g&t's all round to this inept, incompetent bunch of shysters. PS - how did we manage that 10k throughput posted months ago if this is so critical?

[charlieeee] 22/1/2018 09:02

So, return of capital in less than two years, plus additional profit on 4000 Bopd until 2030.

[davwal] 22/1/2018 08:58

OBA CLUSTER
OBA PIPELINE CAPACITY AND FUTURE STRATEGY
• Initial post-commissioning volume was ± 1,500 BOPD
• Agreed minimum contract volume 5,000 BOPD – building through 3,200 BOPD now
• Design Volume (OBA & VHR reception) 50,000 BOPD; 18,000 BOPD pumping capacity currently installed
• Lago Agrio
• SOTE or OCP (segregated transport)
• Total capacity <260 kBOPD
• RODA currently has transport limitations
• Increase in production levels from PAM fields
• Outage of 1 intermediate pumping station
• Production uplift short term
• Pumping station to be rehabilitated
• 1 further new pumping station to be constructed (Chiritza)

The above from Feb 17 presentation.

[foiledagain] 22/1/2018 08:55

With respect it was NOT a guaranteed minimum for 5,000. Look at the RNS. What is outside of an RNS is not quite as relevant as the official announcement which has to be sanctioned by the Nomad.

[charlieeee] 22/1/2018 08:53

It is a good piece of business, guaranteeing 9000 and not restricting additional.

It always was a minimum for the 5000 and that is why it can and has been exceeded already on some days.

Per 2015 accounts

To reach this milestone we successfully signed an agreement with PETROAMAZONAS EP in May 2015 entitled “Convenio de Cooperacion para el Uso de la Red de Oleoductos del Distrito Amazonico” which permited the construction and operation of the 10” (nominal – 10.8” physical) pipeline from the Ecuadorian border to the point of
connection with the Red de Oleoductos Amazona (“RODA”) gathering system for the transport of Amerisur’s crude oil. In addition the agreement included the definition of construction and responsibilities during use of the system, a
minimum volume commitment and transport tariffs applicable to Amerisur crude oil.

The minimum transport volume guaranteed by PETROAMAZONAS EP to Amerisur is 5,000 BOPD. The transport tariff from the point of reception to the point of delivery at Lago Agrio has been agreed at $1.09 per bbl

[davwal] 22/1/2018 08:46

FA, it’s certainly stated as a guaranteed minimum in the presentation of 2/3/16.

[foiledagain] 22/1/2018 08:33

dav

That is incorrect.
Are you looking at what posters suggested the 5,000 was A MINIMUM, or what company data stated?

Previously Amerisur RNS made it clear it was UP TO 5,000 throughout. So that was a maximum constrained throughput.

Todays RNS clearly states this agreement is for MINIMUM throughputs so its very different from the previous maximum throughputs

RNS Number : 6446N
Amerisur Resources PLC
27 October 2016

27 October 2016

Amerisur Resources Plc

OBA Pipeline Operational



Highlights

· ARCH has issued the decree to Petroamazonas EP for the operation of the OBA system
· Line has been filled with oil and exports at an initial rate of 1,500 BOPD have begun
· Flow rates will be increased significantly in the weeks ahead
· Company has guaranteed right to throughput of up to 5,000 BOPD
· Discussions ongoing to increase this significantly
· Cash opex costs per barrel expected to reduce from approximately $26 to under $15
· Nine fully funded wells to be drilled in OBA cluster of assets in next [15] months
· OBA has been constructed and commissioned on budget of $18m

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America, is pleased to announce that the regulatory agency of Ecuador, ARCH has issued the decree to Petroamazonas EP for the operation of the OBA system in Ecuador. As a result, transport of Platanillo crude oil has commenced at an initial rate of 1,500 BOPD via the Petroamazonas EP owned and operated Amazonas Oil Pipeline System (RODA) to Lago Agrio, for further onward transport to the port of Esmeraldas. The OBA has been constructed and commissioned on budget of $18m.

Once precise measurement of tanked volumes and adjustment of the dynamic measurement systems has been completed, flow rates will be increased significantly in the weeks ahead. The Company has a guaranteed throughput of up to 5,000 BOPD in the pipeline and an increase is currently being negotiated. The technical capacity is 50,000 BPD and the line has a currently installed export pump capacity of 18,000 BOPD.

Cash opex costs per barrel are expected to reduce from approximately $26 to under $15. In addition to the cost savings, Amerisur OBA and SOTE (Ecuadorian pipeline to the coast) exported crude will receive Oriente crude pricing plus a quality compensation factor, which has historically approximated to WTI pricing. Current trucked production is sold as South Blend, which is at a discount to WTI.

Giles Clarke, Chairman said:

"The OBA is the first piece of bilateral infrastructure between the two great countries of Colombia and Ecuador. Its delivery is a historic achievement and I would like to thank the Colombian and Ecuadorian Governments and congratulate the executive team at Amerisur. The OBA is a highly strategic and valuable asset for Amerisur and its shareholders."

John Wardle, CEO said:

"I am delighted this strategic piece of infrastructure is now operational. We have an OBA cluster of assets including Platanillo, Put-8, Put-12 and Coati, on which we are drilling nine fully funded wells in the next 15 months to increase low cost production, resources and reserves, all of which can feed this pipeline. In addition, in time we have the potential to take third party oil, initially from partners, and then from others."

[davwal] 22/1/2018 08:30

Looking back, the 5000bopd was also stated as a minimum guarantee and that was expected to increase in time. This increased minimum is great but given Amer’s stated production target of over double that it needs to be explained how the 20k level is reached - as a guaranteed minimum.

[foiledagain] 22/1/2018 08:26

Unless Malcy had it wrong a lot of the work at the Chiritza pumping station has already been done.

"Throughput in the OBA has been good, averaging 1,839 b/d with a peak of 4,110 b/d and engineering work to construct the Chiritza pumping station in the RODA system is well under way."

December 2016


Thats likely to be all the planning of the construction which often very time consuming and often mores than the construction.

[foiledagain] 22/1/2018 08:08

Clever agreement

When the pumping station is upgraded it will give a much greater capacity than the 4,000bopd guaranteed to Amerisur, but it would appear Amerisur have only increased capacity to a figure they believe they will require, i.e. 9,000bopd.

Its clever because it minimises Amerisur's recoverable Capex by tying it to the 4,000 and once its completed in October does not prevent Amerisur raising the capacity by arguing that increased throughput on a per barrel basis will be sufficient as the pumping station had been uprated already. The wording is clever too because previously the maximum guaranteed was up to 5,000bopd, now unless the wording is printed wrong it is a minimum throughput guarantee.

With CPO-5 prospect of a couple more wells there could be 3,000bopd coming from that, which would not go through the OBA, so the 9,000 plus CPO5 ould still represent 12,000bopd

Notice this time its guaranteed 'minimum'. Previously the guarantee was for up to 5,000bopd.

[eggbaconandbubble] 22/1/2018 08:05

Minimum or maximum? I admit it does seem rather vague!

[davwal] 22/1/2018 07:59

There must still be significant obstacles in the way to limit the increased maximum to 9000 bopd. I presume that’s why GC is going to Ecuador next month. Still, it’s a positive development.

[rollthedice] 22/1/2018 07:56

So millions to be shelled out for a pumping station which will be recoverable against future transport costs to raise minimum guaranteed throughput to 9000kopd. At least it's being addressed but over what timescales? How much revenues have been lost because this basic due diligence wasn't done as part of the OBA build rather than now?

In time this will be a major positive but the three cheers are through gritted teeth!

[sleveen] 22/1/2018 07:09

It was worthy of an RNS :-)

[blackdown2] 22/1/2018 07:05

At last, an update re the OBA.

[big7ime] 20/1/2018 12:40

About 38mins in rather confirms harrisun's point that shale is a bubble that has gone horribly wrong in his opinion. They are not profitable and rely on capital inflows to keep going and cannot survive on operational cash flow which is negative

[sleveen] 20/1/2018 10:38

Another AB piece, worth reading

[foiledagain] 20/1/2018 10:26

Sleveen. The link with Art Burman is a must listen to event. More sense from this guy on shale than anyone else.

So good I have reposted it. Quite lengthy but worthy no nonsense appraisal of shale.

[sleveen] 20/1/2018 09:06

Worthy of an RNS if the former.

[bigwavedave] 20/1/2018 09:03

Yesterday, John Wardle signed "the second agreement of co-operation for the use of the RODA pipelines (in Ecuador)", according to PetroAmazonas. Does this include an increase in throughput or is it just an annual bit of paperwork? I know not. I hope the former but suspect the latter.

[lauders] 20/1/2018 06:53

You mean this seball:



>Amerisur Resources

The South American explorer and producer has a market capitalisation of about £252m. It has extensive acreage — just under 1m hectares — and it owns 100 per cent of most of its 12 blocks. It built up its position through the downturn and is focused on the Putumayo Basin in the south of Colombia.

At the end of 2017 Amerisur was producing just over 7,000 barrels of oil per day. It has announced a fully funded exploration programme for this year and plans to drill three wells on its Platanillo N sands.

The company’s share price peaked at more than 66p in August 2014 but it has traded lower since. Positive exploration news could underpin the shares, which have risen from 17p to 20.85p in the past month. Housebroker Stifel has a price target of 32p.

[sleveen] 20/1/2018 06:47

Art Burman on shale oil from 8 mins in.