Amerisur Resources PLC Operations Update (7475B)

TIDMAMER

RNS Number : 7475B

Amerisur Resources PLC

11 June 2019

11 June 2019

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

Operations Update

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America (LSE: AMER), provides an update on operations in Colombia.

Highlights

   --      Final ANH approvals received for farm-out deal with Occidental 
   --      Successful infill well at Platanillo 
   --      WI Production over 6,800 BOPD 

ANH Approval of Occidental Farm Out Deal

The ANH has granted approval of the farm-out agreement with Occidental announced 23 November 2018. The deal relates to four exploration blocks: Putumayo-9, Terecay, Tacacho and Mecaya in the Putumayo region, southern Colombia. As previously stated, Occidental acquires a 50% interest in each block and in consideration will fund a $93m exploration and appraisal programme between 2019-21. Funding includes 85% of the 1068km 2D seismic equivalent and 100% of the planned four well drilling programme.

Amerisur remains operator of the blocks that cover 1.4m gross acres and hold 448 MMBO mid-case gross prospective resources, based on management estimates.

Platanillo (WI 100%): Production Optimisation

The company recently completed the Platanillo-26 infill well targeting an undrained area of the Platanillo field. The well reached the target depth of 9,350ft and encountered 46ft net pay in the upper and lower U sands. The well is now onstream and producing around 710 BOPD. Production optimisation on the field continues with a sidetrack well at Platanillo-22.

Production Update: Current Production over 6,800 BOPD

Year-to-date production to the end of May 2019 averaged around 5,300 BOPD. Current group working interest production is now over 6,800 BOPD following the successful infill well at Platanillo and continued stable production from CPO-5. FY19 production guidance is maintained at 5,000 - 6,000 BOPD and does not include any contribution from exploration drilling.

CPO-5 (WI 30%): Sol-1 Exploration Well

Operations on the Sol-1 exploration well continue and results will be announced shortly. After drilling operations are completed at Sol-1 the rig will move to drill the Indico-2 appraisal well.

John Wardle, CEO of Amerisur, said:

"We are pleased to secure all the approvals associated with the transformational deal with Occidental. Work has started to initiate seismic surveys and drilling on the acreage later this year. Production optimisation at Platanillo continues to deliver with production now over 4,500 BOPD from the field. On completion at Sol-1 the drilling rig on CPO-5 will return to Indico for appraisal drilling that has the potential to increase reserves and production from the field".

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.

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

Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 33 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Glossary

 
 "BOPD"   barrel of oil per day 
 "MMBO"   million barrels of oil equivalent 
         ---------------------------------- 
 "WI"     working interest 
         ---------------------------------- 
 

Ends

Enquiries:

 
 Nathan Piper, 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/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 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.

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.

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June 11, 2019 02:01 ET (06:01 GMT)