The threat of natural disasters is present in any part of the world and no more in Amer's operating region that anywhere else. Most oil comes from places with a degree of either political risk or the pollution potential risks e.g. marine and offshore production. A load of much riskier places in the world than this.... What would a South American punter think about investing in oil production in N Ireland????
The threat of natural disasters is present in any part of the world and no more in Amer's operating region that anywhere else. Most oil comes from places with a degree of either political risk or massive pollution potential e.g. marine and offshore production. A load of much riskier places in the world than this.... What would a South American punter think about investing in Oil production in N Ireland????
Company overview Amerisur Resources is an oil and gas exploration firm focussed in Columbia and Paraguay. Its key resource is the Platanillo fields in Columbia which at the time of writing is the only productive asset so far.
Under/Over valued? As this is a small oil and gas exploration firm operating in a potentially unstable region, this would represent a very high risk investment. In terms of exploration, the company has made significant progress in recent years turning exploration projects into productive assets. Production only recently began at its Platanillo field in southern Columbia and the last update from the company in December showed that they were producing 4,342 barrels of oil equivalent per day (boepd) and confirmed that they remain on track to produce 5,000 boepd at 2012 year end. There remain several other wells still to be drilled for which updates are expected in Q1 2013 but tests carried out so far are positive. Amerisur have a 100% working interest in the Platanillo blocks and a 100% interest at its other exploration blocks in Columbia and Paraguay. These are all set for more seismic activity and drilling in 2013 and the company remain positive on their prospects.
With production increasing at a rapid rate, the company is expected to build on last year's performance with net margins expected in the region of 45% helped by the fact that the company has no debts on its books.
Risks There are significant risks regarding the exploration, there may be oil wells that turn out to be dry or yield insufficient quantities to make it commercially viable. Given the region that they operate in there are high political risks and the threat of natural disasters is always present.
Facts The last set of published results for the 6 months to 30 June 2012 showed revenues of $6 million, operating profits of $1.2 million with a cash balance of $11.2 million.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.