LONDON (Alliance News) - Amerisur Resources PLC Wednesday said the all-important pipeline that will stretch across Ecuador and into Colombia remains on track to be completed on time, and said drilling elsewhere is also progressing.
"The laying of the OBA pipeline is progressing well with the pulling through of the 1.5km section of the pipeline under the Putumayo River from Ecuador into Colombia now complete and integrity tested. We remain on target for completion by the end of May."
Thought target date was April .... Jeez this company is hard work ...
Share price 34p one year ago, today 27.5p. High/low 37/19p
Brent crude prices one year ago $70, today $48 brl. High/Low: $70/31
In May 2015 the company said the pipeline was imminent as it repeated in mid 2014, in late 2014, in early 2015, at the AGM in May 2015 and again in December 2015. Yet still not completed. No wonder the poor share price performance.
Now the pipeline is under construction but no date yet given when oil will flow. No indication of how much oil will be flowing and when. No indication of the price which will be obtained. No indication as to whose oil will be flowing. No indication whether contracts have been entered into with third parties as to amounts of crude to be transported and the income therefrom. No indication as to whether AMER will buy the oil from third parties. If purchased, no indication given as to the discount on market prices to be obtained on the third party purchased crude.
Failure to sell forward crude production in 2014/5 resulted in a fund raise in early 2016 with dilution for existing shareholders - a placement of 106 million shares at 25p per share which had associated costs of about USD 3 million or 8% i.e. a net placement price of c.23p per share!
Also due to lack of cash (which were in excess of $130 million in mid 2014) shares, which Directors presumably thought were well priced, had to be issued to make acquisitions.
Cash management has been weak from what, in 2014, was a position of strength.
Crude production by end 2016 projected to be 7,200 brls/day compared with c.7,000 brls/day in 2014 and projections at that time of over 10,000 brls per day by end 2015.
Paraguay - prospective resources now shown in the Annual Report as 106 MMBO which compares with 685 MMBO in company presentations of October 2014 and Feb 2015.
Chairman admits in his Annual Statement that the Remuneration Committee was not fully independent i.e. when he, the Finance Director and the CEO were issued with huge numbers of shares i.e. in 2014 and 2015. Not options but fully paid up shares.
The company needs a new Chairman, the removal of his associates from the Board and replacement with more competent and industry experienced Directors.
Vote AGAINST re-election of Clarke (Chairman) and Harrison (Finance Director)
Strongly agree but our pipeline is late. Why state clearly 35 day completion timeline in the RNS then miss your own deadline. School boy error which for me is why we are hovering here. I suspect when the news comes we will commence a slow and steady re rate back to 40p or so, only my opinion of course.
I am sure they're on to it. Ecuador pipeline much more important for short/medium term in my view ... and at least we know that it has completed the under the river section. I would like to see an update on that soon though. Wonder if they have any other producers lined up for export yet?
I hope they do d something firat off in Chore. Whatever will be under wraps. They are fulfilling contracural obligations. Oil flowing through oba is big one. Paraguay will make millions later in the Century. Let them.sort Colombia Ecuador. No infrastructure in Paraguay, presently. Let them get drilling in the first in San Pedro..
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