LONDON (Alliance News) - Amerisur Resources PLC on Friday said it was making "strong progress" across all of its operations, having drilled its Jaguarete-1 exploration well to its total depth and made good progress in its OBA pipeline, despite a number of delays.
The South America-focused oil and gas firm said, following the spudding of its Jaguarete-1 well in Paraguay in late April, it has now reached total depth in the drilling of the well, to 8,626 feet in the Itajuru basement formation. Amerisur said it found "positive indications of oil and gas" in the potential reservoir sections, and a decision to complete and test the well will be taken once electrical logs have been interpreted.
The potential reservoirs of the Lima and Santa Elena formations were encountered "slightly deeper than anticipated", and from initial mud logs appear to be complete in their development, Amerisur added.
The well was drilled on budget and safely, Amerisur added, but said the significance of the results will not be known until all data analysis and any additional operations on the well have been completed.
Amerisur also noted that it has begun the mobilisation of the drilling rig Serinco D-10 from Pad-1 to Pad-5 in order to drill Platanillo-8, which is the first of the two infill wells planned for this year.
A seismic inversion study at the Plantanillo site is being performed, in order to get a "better characterisation" of the sand distribution, Amerisur added, which should optimise future well trajectories. The results of this will be available by the end of June.
Amerisur said it also continued to progress the completion of its OBS pipeline system, which will link to the pipeline between Ecuador and Colombia.
The timing of the pipeline is significant, as Amerisur shut in production from some of its higher-cost wells at its sole-producing Platanillo field in Colombia. These cannot come back online until the pipeline is active, as it will significantly reduce operating costs.
Amerisur on Friday said the construction of the final line was impacted by an "administrative matter between PetroAmazonas, the operator of the area, and local communities, together with heavier than expected rainfall in the region". However, this matter has now been resolved and the section will be completed over the next few weeks, with the final commissioning period expected to be shorter than originally expected.
"It is a very busy time for the company, and we are making strong progress across all of our operations as we deploy the additional funds raised in March from our institutional shareholders. I am pleased to report the successful drilling to TD of the Jaguarete-1 exploration well. Although still at an early stage, we are encouraged by the evidence of a working hydrocarbon system and I look forward to the interpreted electrical logs and being able to update the market following the analysis," said Chief Executive John Wardle.
"Final completion and operation of the OBA pipeline system is close, and Amerisur has advanced all its work streams in an efficient manner. The OBA pipeline will change the economics of our Platanillo production by reducing lifting and transport cash costs to around USD16 per barrel," Wardle added.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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