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Turning to progress, the RNS was very interesting as they introduce a new director with communication specialisms - I believe I commented last week that NH highlighted institutional support in his recent article, a confidence perhaps betraying a real concern/lack of support, well perhaps this appointment is because the BoD are concerned institutions are really losing patience.

GC is supposed to look after large shareholders and NH the rest - perhaps their credibility is shot, certainly it appears GC's is with RH and NH is seen in similar light by many PI's .

Hopefully the new appointment will address the problem so I'm very pleased with it - we shall see though.

The area of biggest success is the T-sands, if production holds up it could be something very substantial.
There is no need to draw too hard on the hole with a pump, if 600bpd is sustained that is near perfect IMO (I had hoped for 500bld), more is a bonus - the low water content would suggest it's a possibility.

However, at the low cost per well if the size of the find is extensive then multiple holes should surely be the immediate target for expansion - there is no reason to believe they have found the most productive part of the accumulation yet so all is to play for.

I must challenge some of the comments made over the weekend, I think they are wrong - the T-sand is not a chance find, it was a known target and mentioned as requiring investigation long ago in a presentation. - wells on CPO-5 are not expensive, I recall $2m/well for Amer to contribute - there are actually 4 prospective wells on COP-5 not 3, we know because ONGC has produced tender docs for them and one of our directors (I think CEO) mentioned it at the AGM. The fourth well is un-named because its location will be selected based on what the other find.

Finally. on potential licences - the Ecuadorian government announced the result of their oil field tenders on Friday, I believe 6 deals, including 3 consortiums - I doubt we even tendered but the smaller deals are still to be decided so who knows.

Meanwhile the Colombians announced they are freezing their recent offer to companies to make speculative offers for licence areas - I don't know why but I suspect they have been overwhelmed to dealing with expressions of interest - maybe Amerisur is one of the un-named companies involved

Same old lock on the SP this morning, it bothers me that if it persists too long large quantities of shares change hands at this low price and it could create a drag on the eventual rise even after RH is finished. I console myself with the facts that I believe the vast majority of trades are most likely rinse and repeat sales not RH and of course is now making real progress other than with a pumping station that is useless unless production is increased.

We get poster after poster announcing purchases - but who on earth are the sellers, apparently only RH!

Of course it's not all RH - in truth many of those that post and cite the virtues and long term prospects are probably very short term holders - they are probably often providing the rinse ad repeat shares for the MM's, helping drive down or stunt the rise of the SP on news

IMO this is crying out for a new institutional buyer or two, the surplus shares need soaking up as the BoD seems indifferent to the problem and will not institute a share buy-back programme -an option they sought at the last AGM.

Unless it's a super-hyped share like MATD I much prefer the bulk of shares to be held by institutions that sit on their shares for a few years.

Wuffle - historically Amerisur followed the trend of oil in the same fashion as other oil companies.

So although it's true recently that the oil the company has diverged from other oilies, indexes and the oil price it does not mean to say things will not chance - the raging debate is really the old Who What Where When, Why and How of it and RH features high in all aspects.

I'm not a chart driven investor but some very interesting trends that IMO point to a very significant recovery when the root cause of the problem is sorted:

Amerisur SP started to diverge from the oil index, oil price and FTSE in general roughly when RH started to divest and the company has been out performed by a huge factor, 3 in 3 1/2 years.

Even more startling Amerisur's SP has lost 80% of its value in 5 years and has been outperformed by the FTSE by a factor of 6 even before dividends are taken into account- some long term holder probably feel suicidal knowing their investment would be worth 6 times more. Mine should be double and I'm at the angry stage

If/when this corrects the rise could be huge and sustained. The SP has been near 70p in the last 5 years and can be again.

IMO it's a feud, all about pride and belligerence on all sides

Our BoD have IMO refused to openly and fully acknowledge the problem and simply deal with it, so it's festered for years to the detriment of everyone.

RH is fully entitled to sell shares, the problem for him is he had the audacity to challenge our BoD and as a result a sceptical observer might suspect the BoD have no desire to facilitate his dignified exit. Some of you need stop trying to blame him, he is doing nothing wrong, blame the root cause and press the BoD to deal with the effect .

Hence, my periodic calls for a share buy-back programme, not to push the SP up or even to actually buy shares in anything other than a token quantity. What it would do is send a signal out to RH and the bears that the BoD will take action it necessary - it's a powerful message and will allow investors to buy in confidence.

Some of you may not have picked up on a statement in the recent article purporting to have had a quote from Nick Harrison about enjoying good institutional support. It's a very interesting statement. first in respect to RH (no support there unless he near completed selling) and more importantly I saw it as perhaps a signal to institutions that if they are wobbling in support they are alone. Has someone/entities raised concerns?

It struck me that they may have betrayed a fear of II dissention (year end and AGM are closing in now), II's must be getting P*ssed off with the thought of more jam tomorrow, maybe want answers. NH is trying to reassure PI's and presumably GC is doing the same for II's behind the scenes - but IMO it's not enough they need to take action.

Come out of an entrenched position "what can we do" and deal with the issues head on.

Yes, clearly I am a disgruntled shareholder and I make no bones about that - I feel doubly frustrated because it's obvious our team has the skills and huge experience to deal with what is a minor problem.

Obviously I can't prove this, but I believe they may be blinded from doing the right thing by the raw emotions resulting from RH challenging them, I hope that is the case because I believe the options are they are content to watch shareholders suffer or are incompetent.

All of the above is IMO and I make no suggestion of any wrongdoing by anyone

Big Bite - good post, I think you hit the nail on the head with

"These results aren't being ignored, there is likely still a great deal of money sitting on the sidelines waiting for a signal that this much discussed seller is clear"

There is lots of money on the sidelines.

If we know about RH I'm sure II's are fully aware and are never in a rush, it's not their money and they will take a watching brief for as long as it takes to ensure the price has bottomed - when the signal are in place they will react.

A poster was criticised for suggesting £1/share for this the other day, but that is not as outlandish as it sounds if one of their blocks starts firing on all cylinders - the SP has been near 70p in the past and the prospects are much improved now. Other peers in Colombia have had huge success, of particular notye Gran Tierra who have turned things around from a dire situation with new management and sent their old boss to us lol. Then of course Paxex and Geo Park boast $ billion asset based on Llanos 34, with a bit of luck we can repeat that success in CPO-5

What is really sad here is that the market so far seems to have simply shrugged off the good news about the U and T-sands finds.

The discovery provides an immediate uplift in production of around 10% and great further potential, yet the SP is where you could realistically expect it to be on no news.

It's a very sad situation, but it's no good blaming RH, I personally find it hard to believe RH was offered a deal on his shares that left him any pride - as I've said before this appears to be a feud that can be traced right back around 3 1/2 years (14th Apr 2015) to a Fin Times article about him and others objecting to director benefits that they regarded as unfair.

The BoD could and still can completely cancel out RH's influence if they so wished, easily, but that would as a consequence release him from his pain - surely no one really thinks the Harbour Foundation enjoys losing money?

IMO this is all about pride for the key players and we a acceptable casualties.

Incidentally, it's worth noting that that FT article date is roughly when the Amerisur SP started to move drastically in the opposite direction from the sector index. To put it into context the index has risen over 30% since 14th April 2015 whilst Amerisur SP has dropped 60%.

So Amerisur has underperformed by the average oil company (not the best) by a factor of over 3 ((1+0.3)/(1-0.6)), in effect had we invested in a simple index tracked we would now be sitting on over 3 times as much money - if that's value creation. I'm a Banana. It's pathetic to let it go on so long and continue maybe for months to come.

Our BoD have IMO been instrumental in allowing this to persist, that's why I take offence when anyone tries to cover them in Glory. They have been paid handsomely in the meantime, whilst watching Amerisur shareholders burn through their investment money.

Amazingly they are still here and shareholders are still supporting them, lets hope they sort this company out in the coming months and repay that loyalty, then again they've only had 10 years at the helm so we must give them a chance. lol

Every few months this comes up, often from new investors who are here for a short time.

GC was embarrassed by this suggestion at his last interview with Malcy cheekily joking about it, IMO it's stupid.

He did not suggest it was imminent or under serious consideration, he said the only thing he could - to the effect it's always considered and he hopes to pay dividend eventually.

In truth it's a load of garbage to even consider a dividend when the development programme has not been executed and opportunities abound including a share buy back or asset purchase to increase shareholder value.

But more importantly "THIS IS A GROWTH COMPANY", you do not invest in these companies for dividends, invest in the FTSE. I and most shareholders buy in for capital growth and I want all monies deployed to that end. A dividend any time before they reach their goal of 20000bpd is a disaster and betrayal of long term shareholders, including those that took part in the last capital raise for a series of as yet unfulfilled pledges.

When you buy shares you should realise what the strategy is, the company is supposedly expanding with tightly controlled costs and not planning a capital redistribution.

I definitely expect Indico-1 to spud in October and in reality could spud anytime, the contractors will not want to hang about and once they get the go ahead to mobilise the rig the clock is ticking on the contract with payments and damages due as contained in the contract.

As mobilisation has started, all the procrastination of ONGC has to stop, I recall from last time that the last job before starting was to get approval of the set-up from the authorities (I recall from Mariposa-1) if they say go all the Indian procrastination ends. The Indians love of bureaucracy is well known, and don't we just know it since partnering with ONGC.

Indico-1 will be the most important well right through to the end of 2019 with the possibility of unlocking massive potential in the block.

Well, I blood* well wouldn't be happy with 20p

You can put yourself out of your own misery as the SP soars through 20p if Indico-1 strikes oil.

Institutional investors don't get exhausted, it's business and they will always want the BoD to lead them to a profitable outcome or dump as RH has done.

At 20p our peers in Colombia will be fighting each other over who gets the deal, pull yourself together - you must have averaged down a lot to get to below 20p. keep the faith a little longer and vote against the management at the next AGM if dissatisfied.

We have a very healthy looking oil price where Amerisur makes very significant earnings/barrel and a share price has been a joke for a long long time, the good news today still leaves us about 2p short of the SP before the first update when we had precisely nothing in terms of a discovery.

As I pointed out the other day the SP has halved with a backdrop of a doubling in oil price - I believe the coming months must see a correction, the BoD must now be well aware of the impending year end and how they will explain away the torture that shareholders have been put through, surely they are not going to sit back and watch it happen.

They'll be desperate the approve drilling of something, having a drill rid idle when we have a huge drilling programme is unforgivable

We are all rightly pleased with the T-Sands flowrate, however, don't forget the U-Sands.

The company went for a test on the T-Sands first because it was of slightly higher quality and proven flow in existing wells but there is no reason the U-Sands may not have a substantial or even better flowrate and quality at this location - this is 2 potential finds not just the 1.

The company hints that the U-Sands may well play a part in reserves reassessment and be developed for production so I suspect a future well will test the flow (they'll not want to interrupt this one).

They Say:

"We will now work to evaluate the size of the discovery while continuing to produce the well, which is being commercialised via our normal OBA route. Once that evaluation is complete we will make a decision as to options for drilling further wells from this Pintadillo pad with the objective of developing the U and T-sand discoveries."

" options for drilling further wells from this Pintadillo pad with the objective of developing the U and T-sand discoveries" - sounds like more wells are currently envisaged by the CEO to me.

Strangely, the outcome of this could be just as significant as the N-Sands anomaly - also I'm no expert in seismic interpretation, in fact clueless on this but might the other anomalies be pointing to similar U and T sand accumulations?

Scruffee01 - don't you realise what's going on, do your research, there is no evidence RH is shorting.

He was the companies largest investor until an alleged fall our with the BoD and has since been selling gradually again allegedly to punish the BoD.

Closer to the truth is that shorter and MMs have used the knowledge of his intent to make hay whilst the sun shines.

I think Malcy sums up nicely, but I think we are missing the obvious here in respect to payback.

The company said the payback period is under a year, good news certainly, but if we considered that the first hole is the most expensive and if no further holes are drilled will also incur the full cost of the pad and pads operational overhead then around 1 year sounds reasonable, but also very pessimistic if assessment determines more well should be drilled. The average cost will fall with every well drilled.

The financials for wells in the area could be very favourable, improving with every successful well and result in a payback period of well under a year based on current oil prices.

Oops - forget to post the link to the Parex presentation

https://parexresources.com/wp-content/uploads/2018/09/Parex-Corporate-Presentation-2018_September-10-Update-1.pdf

I think all posters must face the truth, unfair though it may seem on any good news the bears see it as an opportunity just as bulls do - it's a fight.

An initial rise for any share, unless it's on blockbuster news is almost always met with an effort to push back, it's easy money for some unless the volume is overwhelming. So don't read too much into today's muted response, it is indeed great news and could eventually lead to reserves and production that easily matches the current Plat production area.

The shares are an absolute steal at current share prices, but this has been fertile ground for the dark side for so long that you should not buy in expectation of a dramatic move on any news - major profits are possible for investors IMO

Make no mistake either, though I've been a major critic of the BoD (in case you hadn't noticed lol) they will progress this as a major priority, and if flow rates persist I suspect a second hole would be drilled pretty sharpish.

I would think they would be itching to get on with it now but will have to do due diligence. The old 3 well programme is dead but a new programme extending to 7 wells is entirely possible.

Add to that imminent drilling to start on a potential 4 hole programme in CPO5 and some great news is possible at long last.

Incidentally, I have just taken a look at Parex's latest corporate presentation and they like Geo Park are doing phenomenally well based on LLA-34. Worth a quick read in respect to the Llanos because CPO-5 in sandwiched between LLA-34 and their other block CPO-11. Our block looks like a great potential fit into a hub for them and their work in CPO-11 could encourage ONGC to more south with exploration of CPO-5 as there are much bigger prospects there.

Take a look at the layout on Pg12 and 19 our block is smack bang in the middle, and other pages on the Llanos, very interesting reading that perhaps explains why so many of us are so interested in Indico-1.

I took a look at the size of Indico-1 potential on a plan of the block - compared with Mariposa it is many times bigger and much bigger than either of the other 2 disclosed well sites. I'm assuming the company has accurately represented the relative sizes of course.

If the flow and pay turns out to be anything like the thickness of Mariposa-1 it will a very significant find IMO.

Size matters and the lateral persistence is key.

If it's the size of that N-sands indicated than it's a lot of light oil which I believe is actually much better than the expected heavy N-sands.

Finally. we must remember that this location does not necessarily represent the potential sweet spot for the T-sands (there could be better locations) as the location was chosen because of the strong N-sands indication.

I won't say I told you.

They downplay everything - that is a very good flow rate for this block.

After assessing the persistence of the find, there could be more low cost wells very soon - permissions are obviously in place.

The SP lapped down again at the end of the session.

Obviously it's all pure coincidence.

We should get an initial update on the T-sands pretty quick, the update could also be very significant if it flows at a good rate - essentially we havev all accepted that the N-sands is now dead in the short term and rightly so, to drill a second anomaly now and come up with a dud would be a disaster.

However, if the T-sands are commercial they could quickly (after analysis of potential) drill another 3 or even up to 6 holes and pull out a success from the disappointment.

One thing to stress, is that the 2 additional horizons where oil was discovered where not totally unexpected, the T sands where mentioned ages ago as having potential, it's just that they where secondary targets - the company must now adjust it's plans and hopefully can make something of what it's got