Firering Strategic Minerals: From explorer to producer. Watch the video here.
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OK, so Colonel is using a whole different set of cals from me...
At $5 p/b in the ground I get $340M:
- 15.04 MMBO 1P - $75.2M
- 21.80 MMBO 2P - $109M
- 31.13 MMBO 3P - $155.65M
Add cash and OBA, etc, then could be $500M, which gets us to around 34pps - Stifel's valuation....
wait - "However if valuation is derived from these figures, it will be at the lower end me thinks"
what about stratgeic value? OBA etc.? Cash at hand. There are other factors to add to whatever the outcome of a competitive assessment of reserves.
"Management presentations with interested parties CURRENTLY being held in Bogotá"
sorry for all those out this morning...
Fri, 20th Sep 2019 07:00
RNS Number : 0453N
Amerisur Resources PLC
20 September 2019
20 September 2019
Amerisur Resources Plc ("Amerisur" or the "Company")
Reserves Update
Amerisur Resources Plc (LSE: AMER), the oil and gas producer and explorer focused onshore Colombia, provides the following reserves update for its production assets in Colombia as at 31 July 2019 covering the Company's Indico and Mariposa fields (together CPO-5) and Platanillo field.
Reserves Update Summary
· The independent reserves report was completed by McDaniel and Associates Consultants Ltd ("McDaniel"), a leading independent oil and gas industry expert
· Undertaken as part of the ongoing Formal Sales Process
· Total Company reserves estimated to be 15.04 MMBO 1P, 21.80 MMBO 2P and 31.13 MMBO 3P (as at 31 July 2019), with 1.2 mmboe produced in 2019 to end July
· CPO-5 2P reserves estimated to be 9.5 MMBO (as at 31 July 2019)
o Increased to reflect production history that indicates larger oil in place and higher recovery factors
o Further drilling activity on CPO-5 is scheduled for H2 2019, commencing with the Indico-2 appraisal well. The 30-day well is planned to increase production and reserves with the potential to extend the Oil Water Contact
o Production started from the Indico discovery in the CPO-5 block in January
o 2019 Working Interest Production to end July of 0.43 MMBO
· Platanillo 2P reserves estimated to be 12.3 MMBO (as at 31 July 2019)
o Lower to reflect a more conservative approach to economics late in the life of the field
o Working Interest Production to end July of 0.78 MMBO
Strategic Review and Formal Sale Process ("FSP")
· Multiple parties participating in the FSP following the signing of confidentiality agreements
· Management presentations with interested parties currently being held in Bogotá
John Wardle, CEO of Amerisur Resources said:
"We are pleased to complete the update to our reserves and transition the review of our full portfolio to McDaniel and Associates. We have had feedback from participants in the FSP that they value the new independent assessment from McDaniel. The report highlights the near-term value of the Company's CPO-5 asset."
· Multiple parties participating in the FSP following the signing of confidentiality agreements
· Management presentations with interested parties currently being held in Bogotá
"We are pleased to complete the update to our reserves and transition the review of our full portfolio to McDaniel and Associates. We have had feedback from participants in the FSP that they value the new independent assessment from McDaniel. ***** The report highlights the near-term value of the Company's CPO-5 asset. ****"
However if valuation is derived from these figures, it will be at the lower end me thinks
did i not SAY i could smell news.
big...RKH said FID was "imminent" , that was at least 18 months ago! I find words very vague from these people. Hope you're on the ball with your assumptions....
... which was 12 Sept, so 8 days ago. We are therefore in the zone.
Gary, it was not “within months”. Would it not be reasonable to conclude that they meant between 8 and 31 days from that point?
JTD you are a great guy, your research I admire and value, I put out the George Smiley for YOU!! My man, in the book the deception is key, YOU BELIEVE ONGC - my man that's the point I make not Cider - you and a few others fall for the TAXI tender FFS whilst we are getting creamed. Sorry my son, what this states is after a few Abbott Ales I'm more lucid than you my man - now that's a shocker , anyway I don't post Tinker Taylor smoking fly or sniffing - the humour would not fall out. So call a truce, I'll not mention ONGC tenders for Taxi's !!! and you tolerate a bit of humour you might dislike. I can't write Tinker Taylor SMASHED ffs I'm NOT Olly Reid BUT WORKING ON IT AND you never answer my Hypo's Q;s I,e what is ONGC MO FFS - are ONGC now looking for out!! so you miss the objectives of the post-sweet pea - sort I'm buzzing my tits off as I post- Think not - takes thought to make humour NOT COPY & PASTE !!!FF S HNY Still diff aside please keep informing the post - I dislike the Cider punt - Its Abbot Ale FFS Read and learn Jesus.
It's the 'WITHIN WEEKS" that concerns me , how many bl**dy weeks?!
They have to commit to spending and take on blocks much less mature and therefore with more risk.
Comparisons are not credible as one of the blocks may be infinitely more valuable as others and ultimately worth as much as all 59 together - that's why it's an auction.
Buyers may feel CPO-5 is worth infinitely more than the 59 blocks or not worth a bid our sale is determine that, Occidental knew these blocks where coming up for sale when they did a deal on our Put blocks.
Do companies need to pay for licences? If not, raises the question why they'd spend money on Amer assets when they can pick other acreage up for free
The Colombia government announced the auction of another 59 blocks, it will be interesting to see who is in the mix of bidders and if Amerisur will be in (are we still a contender for anything) there may be some great opportunities.
The companies that have expressed an interest will be named on 21st Oct, offers on"Do of Die" day.
"A final list of qualified bidders will be published on Oct. 21, the statement added, and companies will deposit initial offers on Oct. 31. "
https://www.reuters.com/article/colombia-oil/colombia-opens-59-blocks-for-bids-in-next-oil-auction-idUSL2N26910C
Yes, Amer are trying to make a market by getting all parties together at the right time. Keep government involved too.
do you think the execs of some oil majors are travelling to Bogota to shoot the breeze and ask management their favourate colour? are they farc. gonna be one mighty "sit down". methinks it will not be 1 in 1 out either. probably a roundtable of, right, you want this they want that and we keep this: all agreed?
meeting was within "weeks". could have happened by now. it would not surprise me if it has and some news breaks tomorrow or next week. would be funny to see the scamble for shares.
Great acting, an enjoyable film which I watch on a regular basis.....now back to the world of oil what are your views on where AMER is heading? I have a nasty feeling the talk will not result in a firm bid. No more than paranoia perhaps but the chat and the sp movement reminds me of Flybe when Stobart made a bid and many thought they should hold out for 50p.
AMER on much firmer financial ground but I would like to see a firm offer materialise asap.
TCW it would seem someone agrees with your
There is rarely such a thing as free money but this certainly seems like it to me.
Just noticed the 350000 trade from 8:30 this morning (unsurprising that the SP barely moved as the MM are now just waiting for news to move the price)
Here's a thought. The OBA has a technical capacity of 75,000 bopd. Now lets assume a new owner gets that up to an operating capacity of 50,000 bopd and makes a saving of $5 per barrel, operating for 320 days per year. That is worth $80m per year. After three years that is almost the equivalent of Amer's current market cap. That must seriously get big oil tempted to buy the whole package just to get their hands on it!
There’s been talk of offers not being accepted with the FSP coming to nothing and in turn aggressive take overs being orchestrated. I lean towards the view that Michinoko have forced this FSP, as with Ironvelds. Even if Michinoko didn’t force the FSP it would definitely seem that somebody wants their money out of both companies and are happy to wait a short while to maximise their profits.
If that is the case then I would imagine they will accept the best deal presented. I could of course be wrong but if I’m right then the only remaining question is what that deal is. A hell of a mark up from what is currently being offered, imo.
I’m so overweight here I should have a gastric band fitted, I literally have to fight the temptation to add more on a daily basis. I keep thinking back to July when it was bobbing along around the 12p mark and thinking to myself why am I not buying more, this is free money at these prices. I didn’t, I luckily managed to pick some up around 14.9p when the news dropped but I hope that lots of us will be kicking ourselves come Christmas for not buying more at these levels. There is rarely such a thing as free money but this certainly seems like it to me.