Amerisur Resources PLC OBA Third Party Transportation Approvals (1141Y)

TIDMAMER

RNS Number : 1141Y

Amerisur Resources PLC

07 May 2019

7 May 2019

Amerisur Resources Plc

OBA Third Party Transportation Approvals

Highlights

   --      Approvals in place to transport third party volumes through OBA 
   --      Creates the potential for a material revenue generating opportunity 
   --      Initial volumes to be sent shortly, building through H2/19 to around 2,000BOPD 

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America (LSE: AMER), is pleased to announce that the company has received all the required approvals to begin transportation of third-party crude via the 100% owned OBA pipeline system to Ecuador. Access to this lower cost route to market for Putumayo Basin production in southern Colombia has the potential to generate material revenues for the Company.

Facilities Ready

Amerisur will purchase oil from third party producers at the existing Platanillo reception facilities based on the sales price at Esmeraldas, minus a negotiated margin. The oil will be sold subsequently in a back to back arrangement through an existing oil sales agreement. The Company takes no commodity price risk.

The OBA has a technical capacity of 50-70,000 BOPD with currently installed export pump capacity of 18,000 BOPD. The minimum transport capacity through the RODA is 9,000 BOPD.

Commercial Terms Agreed

The company has reached agreement with another producer in the Putumayo Basin to start crude transportation. Initial volumes are expected to arrive later this month and build, as the system is proved, to around 2,000 BOPD through H2 2019. Third party oil will be received at existing Platanillo field facilities, where it becomes Amerisur owned and is then transported via the OBA to the Amazonas Oil Pipeline System (RODA) to be dispatched, from Lago Agrio, to the port of Esmeraldas.

John Wardle, CEO of Amerisur Resources said:

"These approvals create a consistent revenue generating opportunity from the OBA, further to material cost savings delivered since operations started in Q4 2016. In addition, the ability to transport additional volumes, including third party oil through the Ecuadorian network was a significant factor in securing the Occidental farm-in deal. This represents a major step forward in the profile of the Putumayo Basin".

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

Ends

Enquiries:

 
 Nathan Piper, EVP, Head of Business Development   Tel: [phone] 
  and Comms                                         8273 
  Amerisur Resources 
 Billy Clegg/Kimberley Taylor                      Tel: [phone] 
                                                    4983 
 Camarco 
 Callum Stewart/Nicholas Rhodes/Ashton Clanfield   Tel: [phone] 
  Stifel Nicolaus Europe Limited                    7600 
 
 Chris Sim/Alex Ruffman/Tejas Padalkar             Tel: [phone] 
                                                    4000 
 Investec 
 
 Paul Shackleton/Dan Gee-Summons                   Tel: [phone] 
  Arden Partners Plc                                5900 
 

About Amerisur Resources

Amerisur Resources is an experienced Colombian Operator with an extensive, strategic acreage position in the underexplored Putumayo Basin with Occidental Petroleum ("Oxy") and a the prospective Block CPO-5 in the Llanos Basin with ONGC. Amerisur is the 100% owner and operator of the OBA pipeline, a key piece of strategic, cross-border export infrastructure delivering oil from the Putumayo in Colombia into Ecuador. Amerisur produces from three fields, Platanillo, Mariposa and Indico that together generate cash flow to fund its work programme. Amerisur has recently announced a potentially transformational result at Indico-1, which significantly exceeded expectations - 283 feet gross, 209 feet net oil column without an oil-water-contact.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

UPDUGUCUAUPBGAQ

(END) Dow Jones Newswires

May 07, 2019 02:01 ET (06:01 GMT)