Amerisur Resources Plc: Operations Update

Source Press Release
Company Amerisur Resources Plc 
Tags Pipelines/ tankers/ distribution, Production/Development, Exploration, Upstream Activities
Date September 07, 2015

Amerisur Resources, the oil and gas producer and explorer focused on South America, has provided  an update on operations in Colombia, Ecuador and Paraguay.

Highlights

  • Production in the period May to end August totalled 533,428 barrels of oil ("BO"), or an average of 4,337 barrels of oil per day ("BOPD")
  • Operational netbacks ranged from US$25.95/bbl at a sales price of US$59.25/bbl to US$11.95/bbl at sales price of US$43.77/bbl from February to July
  • Interconnector pipeline - Ecuador ground preparation works within the Victor Hugo Ruales principal facilities completed
  • Ecuadorian Environmental Ministry has approved terms of reference of the license for pipeline construction from the Ecuadorian border to the location VHR-20
  • Construction of the interconnector pipeline expected to be completed in December, and operational at year end
  • CPO-5 Loto-2 well to spud mid-September
  • CPO-5 408km2 3D seismic acquisition programme completed
  • In Paraguay, Ministry approved force majeure application for drilling of Jaguarete-1 until May 2016

Colombia

Platanillo

Production in the period May to end August totalled 533,428 BO, or an average of 4,337 BOPD. All production volumes are currently trucked to Orito. Operational netback to the Company varied with oil price from February to July, from a maximum of US$25.95/bbl at a sales price of  US$59.25/bbl to US$11.95/bbl at sales price of US$43.77/bbl. Further operational savings are being implemented with regard to fuel costs, with the trialling of a combined produced gas/oil burning system. Initial results are promising.

On the interconnector pipeline, in Ecuador, ground preparation works within the Victor Hugo Ruales ("VHR") principal facilities have been completed and civil works are ongoing, including the construction of the 5,000bbl holding tank, reception skids, export system, laboratory and associated facilities.

The Ecuadorian Environmental Ministry ("MAE") has approved the terms of reference of the license required for pipeline construction from the Ecuadorian border to the location VHR-20. Accordingly the Environmental Impact Assessment for that license is being prepared by the Company and will be submitted shortly. It is expected that the license will be granted in the next 60 days, and hence will not impact the timeline for first transport.

Amerisur estimates that construction of the interconnector pipeline "Oleoducto Binacional Amerisur" ("OBA") will be completed in December,  and operational at year end.

CPO-5

The 408km2 3D seismic acquisition programme within the north-eastern sector of the block has been completed and data is currently being processed. Petro Dorado SA (PDSA - a 100% owned subsidiary of Amerisur) and ONGC Videsh Ltd (Operator) have elected to perform a review of all geophysical data within the contract area, and as such have contracted a specialist group to integrate, interpret and review the entire block.  This review is estimated to take up to 4 months. The partners consider this an important value-adding exercise given the large block area, the variety of traps indicated, the positive results from previous wells and the recent and continuing exploration success in adjoining blocks, such as Llanos-34 to the north.

Following road repair works on the routes into the Loto-2 location, from Paratebueno and Villavicencio, the rig Tuscany 109 has been contracted and is currently being mobilised to drill Loto-2. Spudding of this well is expected around mid-September, with log data available approximately 30 days later. On positive testing results from Loto-2 the partners plan to immediately drill Loto North-1, a high step out well within the same structure from the same location as Loto-2. A further well, designed for disposal of produced water may then also be drilled.

Paraguay

Subsequent to the application made by the Company, the Ministerio de Obras Publicas y Comunicaciones (MOPC) has approved an appliocation of force majeure, effectively extending the period to drill Jaguarete-1 until May 2016.

John Wardle, CEO of Amerisur commented:

'I am very pleased with the progress on the OBA pipeline project, which will have an important impact on our transport costs and hence netbacks in this period of low oil sales prices.  We are on track for first oil this year. The Loto project in CPO-5 is also very encouraging and we look forward to the results from that well. The well is targeting a structure known to contain oil in an area of the Llanos basin which has been extremely prolific in terms of discoveries and production, with two further discoveries announced in recent days by other operators. I look forward to reporting further progress in our Interim Results statement at the end of this month.'

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd