Go back 6 months and you would find Amerisur pumping out 5000bopd. Mariposa-1 LTT months away from first oil and PoO trading at $42pb. AMER Share price at the time… 27p.
Today, AMER updated the market on production levels topping 7200bopd. Almost 50% higher than back in June. Mariposa-1 LTT is underway and quickly rising to 3000bopd (approx 1000bopd net to AMER). PoO trading at $58pb, 40% higher than 6 months ago. With Mariposa-1 expected to continue rising to levels near 4500bopd, AMER should be adding a further 500bopd to totals in January subject to well performance and social issues of course. Share Price today… 18.5p. Yep, you heard that right. AMER would need to rise 50%+ just to get back to levels at 27p last seen when the company was doing 50% less production and with PoO almost 40% lower. The mind boggles. It’s certainly a puzzle. Sooner or later the disconnect between AMER’s share price performance and the business performance should close. I suspect when the market has evidence of increased cash flows it may well rerate back to 27p levels within a couple a days. The market has a habit of trading irrationally for months and months only to correct its poor valuations in a matter of days. 2018 looks a great year ahead for AMER as the company heads towards 10kbopd assuming future well successes. Mariposa-1 and the CPO-5 licence really is a game changer for the company.
At 18.5p, it looks a gift.
AMER is not part of the sharehub top ten for 2017 but has been covered via the ‘heads up’ category designed to alert investors to value/growth opportunities in stocks. Usual Risks apply. See the risk section for more information.
Amerisur Resources PLC Monthly Production, OBA and Operational Update
04/12/2017 7:00am / UK Regulatory (RNS & others)
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 production from the Company’s two producing fields, the Platanillo Field, and the Mariposa-1 Long Term Test (LTT), and provide OBA throughput data for the month of November 2017 (the “Period”). Mariposa-1 commenced production on 17 November 2017, with stable production post a Pressure Build Up Test commencing 24 November 2017.
— Total production was 181,537 barrels of oil (“BO”) during the Period.
— Average production per calendar day was 6,051 barrels of oil per day (“bopd”) during the Period.
— Average production per operational day was 7,037 bopd since the initiation of the Mariposa-1 LTT.
— Peak daily production was 7,217 bopd during the Period.
— Mariposa-1 LTT production has increased from a controlled rate of 1,487 bopd to a controlled rate of approximately 3,100 bopd.
— Company expects further increases in production from Mariposa-1 LTT.
— Current Amerisur production before royalties is approximately 7,051 bopd.
— Total export volume was 173,055 BO during the Period.
— Average throughput per calendar day was 5,768 BO during the Period.
— Average throughput per operational day was 6,310 BO.
— Peak daily throughput was 7,066 BO during the Period.
The company is expecting a sustainable year end exit rate of production in excess of 7,000 bopd and average production for 2017 of slightly below 5,000 bopd on a calendar day basis due to peace process related social issues, and above 5,000 bopd on an operational basis.
Platanillo-25 has been produced at a controlled rate since early November and has stabilised at 180 bopd with low water cut.
John Wardle, CEO commented:
“I am pleased current production is over 7,000 bopd. Platanillo production was affected due to a short period of regional social issues in the early part of November which have now been resolved by central Government. Platanillo-27 on Pad 2N is drilling ahead on time and budget and we expect results from this well in December. I was pleased to report the commencement of the Mariposa-1 LTT, which is adding further material production to Amerisur, with, we believe, more to come from this well as the LTT process develops.”