Amerisur Resources Plc: Operations Update

Source Press Release
Company Amerisur Resources PlcOccidental Petroleum Corporation 
Tags Asset Deals, Deals, Upstream Activities
Date June 11, 2019

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.  

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd