(Alliance News) - Takeover target Amerisur Resources PLC on Monday reported a "modest" discovery at a Colombian well, while it also affirmed its annual oil production guidance.
Amerisur a week ago rejected a USD260 million approach from France's Etablissements Maurel & Prom SA, having put itself up for sale a week earlier amid investor interest in a buoyant Colombian market.
It has finished testing the Sol-1 well on the CPO-5 field in Colombia, finding 26.5 feet of net oil pay in the top of the LS3 sands and 10.5 feet in the LSE1 sands, both in the Une formation.
The well tested at an initial rate, using an electrical submersible pump, at 253 barrels of oil per day, at a water cut of 5%.
Amerisur has now moved to the Indico-2 appraisal well, where work will start once the rig arrives from Sol-1.
Production to the end of June, from the start of 2019, was 5,537 barrels of oil per day on average, and Amerisur has held 2019 guidance at 5,000 barrels to 6,000 barrels per day. Production in 2018 was 5,356 barrels a day.
Chief Executive John Wardle said: "As anticipated, the Sol-1 test results reflect a modest discovery. We now look forward to drilling the Indico-2 appraisal well that has the potential to transform Indico reserves as it tests the extent of the oil-water-contact."
Amerisur shares were 2.5% higher on Monday at a price of 18.00 pence each in London.
