"Whilst the delays caused bythe unprecedented increase in activity in Colombia and structural changes within MADS have been a frustration, we have used the time wisely to make more efficient our drilling programme and to put in place the necessary infrastructure agreements to facilitate high and continuous production rates.
"The drilling, which is targeting prospective resources of 30 MMBO, will commence in Q1 2012 and we anticipate high quality oil production rates of circa 2,000 BOPD around midyear 2012 and 5,000 BOPD at the end of the year from the Platanillo field.
We have been most encouraged by President Santos's impressive speech on Monday of this week in London during his official visit to the UK, in which he set out his government's long term strategy and expressed his strong and continuing support for foreign direct investors in Colombia like Amerisur."
John Wardle, CEO said:
"The grant of the modification to our Global Environmental Licence for the exploitation of the Platanillo field has approved Amerisur Resources' plan for the required infrastructure works, 11 additional drilling platforms with up to a further 55 wells, currently anticipated to be required over the remaining 22 years of this phase of the Platanillo contract. I am grateful for the Colombian government's support for our projects and can confirm the Company's complete commitment to the highest standards of environmental management and to sustainable operations during this important development campaign."
Amerisur Resources, the oil and gas producer and explorer focused on South America, is pleased to announce that the Ministry of Environment and Sustainable Development (Ministerio de Ambiente y Desarrollo Sostenible ("MADS"), previously Ministry of Environment, Housing and Territorial Development ("MAVDT")) has granted the Company a modification to its Global Environmental Licence, over an increased area of 4,480 hectares (previously 935 hectares) following the Company's request in January 2011 to modify and extend the licence to encompass additional prospectivity. As a result, the initial six well development programme in Platanillo will commence over both the original and newer southern areas of the licence early in the New Year. The current Platanillo 2P reserve base is 3.6MMBO (Source: Petrotech Engineering Ltd) and this initial drilling campaign is targeting additional estimated prospective resources of approximately 30 MMBO.
The Company has contracted a Drilling Superintendent who has extensive experience in Colombia and the Putumayo basin to lead the drilling programme. All preparations have been made for the drilling, together with the purchase of significant amounts of long-lead items such as casing, tubing and wellhead equipment. During the interim period the Company has refined the drilling programme and civil work designs to enhance efficiency.
Civil works, which include approximately 8 km of new roads to the south, 4 km of new roads to the north, raised drilling locations and the construction of a 15 metre, 80 Tonne capacity bridge will be initiated immediately and it is anticipated that the first well will be spudded in Q1 2012 depending upon weather conditions. The enhanced well plan indicates the first well will be logged and ready to test within 30 days. Further wells, either directionally drilled from the same pad or from other locations will then follow consecutively. The Company has secured reception and transport facilities for initial production rates up to 5,000 BOPD within nearby regional infrastructure facilities.
. . When you think not to long ago this share was .30p and nothing has changed much............... All that oil is still waiting to be extracted,,,,, It looks like this share is recovering....... A progress update is needed on here... Come on AMER, get things moving !
I am confident that the difficulties in obtaining the approval of our License modification will be overcome in the near term. Once that is achieved we will be able to continue our development of the Platanillo field, whose potential is even firmer in our minds after this period of drilling hiatus. It remains our principal objective to deliver significant uplift of production and reserves there. Fenix continues to develop and we look forward to advances in terms of production and reserves over the next 12 months. The importance of Paraguay is growing in line with the quantity and quality of data we develop, and I am positive we will see interesting value generation there before the end of 2012.
"We continue to make good progress in both Colombia and Paraguay. We are eagerly awaiting approval from the Ministry of Environment, Housing and Territorial Development so we can commence our significant drilling programme on the Platanillo Block. This remains our priority.
"The agreement with Reto will enable us to make swifter progress on Fenix, and in August we held a successful meeting with the Paraguayan Government and remain confident in the prospects for the San Pedro Block. Therefore we are excited about the prospects for our blocks in the months ahead and look forward to updating shareholders on this."
Amerisur Resources Plc ("Amerisur", "the Company" or "the Group")
Unaudited Interim Results for the six months ended 30 June 2011
Amerisur Resources PLC, the oil and gas producer and explorer focused on South America announces results for the six months ended 30 June 2011.
· Operating profit up 94% to US$1.8m (2010: US$0.9m)
· Platanillo Block 2P reserves increased to 3.6MMBO; approval of modification of Environmental Licence to commence drilling programme expected shortly
· Reached commercial agreement with Reto Petroleum Limited Colombian Branch to develop the Fenix Block together
· Interpretation of Aeromagnetometry programme on Paraguayan San Pedro block underway; post period end the Group announced that senior executives held a very positive meeting with the Paraguayan Government to discuss the progress it is making
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