LONDON (Alliance News) - Amerisur Resources PLC on Wednesday said it has reactivated limited production from the Pad 3N site in the Platanillo field in Colombia.
The oil and gas explorer said it has taken the step to restart limited production was taken due to an improvement in the operational netback from the production pad, due to cost reductions achieved through efficiencies and tariff negotiations with service producers. The company also said it has seen an improvement in current sales prices and the availability of additional reception volumes at the Orito station, operated by Ecopetrol.
The Pad 3 site is currently producing around 1,300 barrels of oil per day, with entire field production at Platanillo around 5,030 barrels per day.
Amerisur said operational netback to the company during early April was USD24 per barrel, with an estimated sales price of USD51 a barrel. This is expected to rise to USD29 and USD55 per barrel, respectively, with the volume contribution from Pad-3N.
It said that once interventions of wells on Pads 9 and 5 are completed, field production in May is expected to be around 5,600 barrels of oil per day, with an operational netback of USD30 per barrel.
"Under current conditions our production volumes will be tied to the lifting and transport cost profiles, until our interconnector with Ecuador is ready later in the year. Naturally we welcome the recent recovery in oil price and look forward to further improvements as the market stabilises," said Chief Executive John Wardle.
Amerisur said its capital expenditure guidance for the year remains unchanged.
Shares in Amerisur were down 1.7% to 32.69 pence on Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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