AMER.L Share News (AMER)

(ShareCast News) - South America-focused oil and gas producer and explorer Amerisur Resources announced on Thursday that the regulatory agency of Ecuador, ARCH, has issued a decree to Petroamazonas EP for the operation of the OBA system in Ecuador.The AIM-traded firm said that as a result, transport of Platanillo crude oil has commenced at an initial rate of 1,500 barrels of oil per day via the Petroamazonas owned-and-operated Amazonas Oil Pipeline System (RODA) to Lago Agrio, for further onward transport to the port of Esmeraldas.It said the OBA has been constructed and commissioned on budget at $18m.Once precise measurement of tanked volumes and adjustment of the dynamic measurementsystems has been completed, Amerisur said flow rates will be increased significantly in the weeks ahead.The company said has a guaranteed throughput of up to 5,000 bopd in the pipeline and an increase is currently being negotiated.Amerisur's board said the technical capacity is 50,000 bopd, and the line has a currently installed export pump capacity of 18,000 bopd.Cash opex costs per barrel are expected to reduce from approximately $26 to under $15.In addition to the cost savings, exported crude from Amerisur OBA and its Ecuadorian pipeline to the coast, SOTE, will receive Oriente crude pricing and a quality compensation factor, which has historically approximated to WTI pricing.Current trucked production is sold as South Blend, which is at a discount to West Texas Intermediate."The OBA is the first piece of bilateral infrastructure between the two great countries of Colombia and Ecuador," said chairman Giles Clarke."Its delivery is a historic achievement and I would like to thank the Colombian and Ecuadorian Governments and congratulate the executive team at Amerisur."The OBA is a highly strategic and valuable asset for Amerisur and its shareholders."CEO John Wardle said the board was delighted that the "strategic piece of infrastructure" is now operational."We have an OBA cluster of assets including Platanillo, Put-8, Put-12 and Coati, on which we are drilling nine fully funded wells in the next 15 months to increase low cost production, resources and reserves, all of which can feed this pipeline."In addition, in time we have the potential to take third party oil, initially from partners, and then from others."