malcys blog23 Nov 2018 16:28
(might have been posted already).
Amerisur Resources
Amerisur has signed a farm-out with Occidental Andina (OA) across Putumayo-9, Terecay, Tacacho and Mecaya blocks in the Putumayo region in Southern Colombia. OA earns a 50% stake in each for funding exploration and appraisal in the 2019-2021 years which is 85% of the 2D seismic and 100% of the planned drilling programme. In addition OA will pay a ‘commercial tariff’ for dedicated capacity to transport crude through the OBA.
There are a number of real advantages for AMER in this deal but primarily it accelerates their programme using someone elses money. Of these blocks I think that only PUT-9 is already in progress and would have been drilled this year if not for local issues which have pushed it into next year. With AMER not yet prioritising Terecay and Tacacho, preferring to spend capital on more likely near term production, this acceleration of two promising blocks is very helpful. With seismic now likely next year and drilling in 2020 a partner has brought the potential for significant added value to AMER’s portfolio and the addition of a highly experienced team in country from OA is another bonus.
Although there is nothing specific to add for OBA throughput from this deal,there is no doubt that the company are, as per recent announcements, at long last looking to add value by carrying third party crude and charging a tariff for it. This will not only add income but will be added to the valuation of AMER by creating an annuity income and as per infrastructure funds a solid valuation to add significantly to market cap.
Overall this has been a good week for Amerisur, a highly respected oil industry partner has given a high valuation on a large part of its portfolio, the potential of the 600m+ barrels in Terecay and Tacacho are brought nearer and they have added to their cash pile whilst being carried on these blocks, what’s not to like?
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