LONDON (Alliance News) - Amerisur Resources PLC on Tuesday said its Calao-1X exploration well result was "disappointing" after it failed to identify any hydrocarbon potential.
Shares in Amerisur were down 15% at 14.30 pence on Tuesday morning.
The oil and gas company holds a 30% interest in the Columbian CPO-5 exploration and production contract, where the Calao-1X exploration well is located.
Calao-1X was drilled to a final depth of 11,445 feet, but no hydrocarbon potential was found. Amerisur said the well could become a future water disposal well and it is integrating the result into its geophysical model.
Amerisur Chief Executive John Wardle said: "A disappointing result from Calao, however the information obtained from the well is allowing us to further refine our model in this important area, where we have already established material reserves through the drilling of Mariposa-1 and Indico-1. It is important to ensure that we fully re-evaluate Pavo Real-1X before committing to drill, and Amerisur has recommended to the Operator that drilling focus should return to the Indico structure for the moment, with the drilling of Indico-2, a low risk appraisal well. The Calao result has no impact on the previously disclosed CPO-5 reserves for year-end 2018."
At the Plantillo block, also in Columbia, Amerisur is continuing to optimise production and has already completed its workover on the Platanillo-8 well. The workover rig is now at Platanillo-2 and will then move to Platanillo-7.
Once the Platanillo-7 workover is complete, Amerisur will drill a new Platanillo-26 infill well to target an undrained areas and will re-enter Platanillo-22 and 21 to perform sidetrack and increase their "productive potential".
Amerisur is 100% owner and operator of the Plantillo block.
"The result of the Platanillo-8 workover was very positive, and we expect further success as our multi-well programme continues in that field. We also believe that the infill well Platanillo-26 is a low risk option to augment production in Platanillo and look forward to updating the market as that programme progresses," said Wardle.
During the first quarter of 2019, Amerisur expects its working-interest production to average approximately 4,600 barrels of oil per day. Amerisur said this down but didn't provide a comparative figure.
Amerisur said oil production was down due to Indico-1 well being choked back to around 330 barrels per day from around 1,100 barrels per day net as a result of operational requirements for drilling Calao-1 from the same drilling pad.