Amerisur Resources – Ops and Production Update

Mixed bag of news from AMER this morning (Full RNS below). Whilst the ‘Holy ones’ visit to Colombia was flagged up by the company some weeks ago, the actual production numbers for Sept are on the lower side of expectations. AMER management have created a reputation for blaming their missed targets on anything from weather, to social unrest and now it’s all down to the lord’s messenger. Colombia is a highly populated Catholic region so any ‘event’ which involves the Pope will cause disruption to day to day events. It’s certainly not an excuse I expect AMER BoD’s to roll out again anytime in the future. So lets not dwell too long on this. On a brighter note production (currently) is running at approx 7400bopd. That’s more like it! The stand out news comes from Plat-21 (PAD2N). Roughly 8 weeks ago test production was running at around 400bopd. News of commercial rates at 1000bopd should warrant a headline by itself. It’s impressive and is circa 250% better than pre-drill estimates. This whet’s the appetite ahead of Plat-25 results. Should the latter deliver anywhere near those numbers, then AMER will be in danger of smashing their 7500bopd y/e targets. Add to this the impending test production on Mariposa-1 and the company could be delivering 10kbopd sooner than many thought possible. The latter is trucked via northern routes so cost per barrel is nearer $25pb than $15pb, but that still leaves circa 7500bopd going through the OBA at $15pb all in costs. With PoO looking ready for the $60’s more than the $40’s, the cash generation for AMER looks strong. Considering the company’s current position the share price has some catching up to do. Watch out for Plat 25 news around mid Oct and Mariposa-1 test production news looks ripe for the same period.

With up to 16 wells planned over the next 15 months, AMER looks ready to get those bells ringing again. Praise the lord!

Current sp 19.75p. TheShareHub y/e 2017 target 37p. 2018 target – 50p.

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RNS Number : 3400S
Amerisur Resources PLC
02 October 2017
Amerisur Resources Plc

Monthly Production, OBA Throughput and Operational Update

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide unaudited Platanillo Field production and OBA throughput data for the month of September 2017 (the “Period”).

Production

   --     Total production was 120,662 barrels of oil ("BO") during the Period.

— Average production per calendar day was 4,022 barrels of oil per day (“bopd”) during the Period.

   --     Average production per operational day was 6,033 bopd during the Period. 
   --     Peak daily production was 7,397 bopd during the Period. 
   --     Current production is approximately 7,400 bopd.

OBA Export

   --     Total export volume was 122,352 BO during the Period. 
   --     Average throughput per calendar day was 4,078 BO during the Period. 
   --     Average throughput per operational day was 6,117 BO. 
   --     Peak daily throughput was 7,137 BO during the Period.

This data will vary month on month as development, appraisal and exploration operations continue, and also due to the factors involved in operating in the Putumayo region of Colombia. These factors include inclement weather, social issues with drilling and oil transportation and planned and unplanned shut downs for technical works undertaken among others. This data has not yet been approved by the Colombian Agencia Nacional de Hidrocarburos (ANH) or national customs and tax authorities DIAN and may be subject to revision.

Platanillo-21, located on Pad 2N was placed on commercial production at approximately 1,000 BOPD on 29 September. On Platanillo-25, currently being drilled from pad 2N, 9.5/8″ casing has been cemented at 5,682ft. This well, a southerly step out well from Pad 2N, is expected to be logged in mid-October.

The Company has been informed by the Operator that the well Mariposa-1 will be placed on Long Term Test (LTT) in mid-October.

John Wardle, CEO commented: “The disruptions to production caused by social issues and the Papal visit were regrettable but are behind us now and I am pleased that both our production and OBA throughput continue to grow so strongly. Platanillo-21 was a very good result which confirms further the production and reserves potential we have developed at Pad 2N. I look forward to the results of our next well on that pad during October. I also look forward to the commencement of the Mariposa LTT, which I am sure will add further material production to Amerisur. ” ENDS

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