Malcys latest on Amer12 Jun 2019 09:26
Amerisur Resources
An update from AMER this morning which looks very positive but also alludes to more excitement to come. This is partly as the ANH has given formal approval to the Oxy farm-out which gives them 50%in four exploration blocks at a cost of $93m. This covers the exploration and appraisal programme for 2019-2021 including 2D and 3D seismic and 100% of a five well drilling programme. CEO John Wardle is clearly pleased to announce that work has already started on this programme.
Elsewhere, the Plat-26 infill well has been a success with the well producing 710 b/d from 46 feet of pay in the ‘U’ Sands, next stop is the sidetrack that is continuing on Plat-22. There is also good news in the production update which is currently at a perky 6,800 b/d bringing up the yearly average of 5,300 b/d. This includes the Plat-26 infill and CPO-5 production but not current exploration drilling.
At CPO-5 Sol-1 is at TD where logging operations are under way, after this the rig moves to drill the Indico-2 appraisal well so obviously not long to wait but no clues here. Amerisur is clearly firing on all cylinders and with third party crude through the OBA and the Oxy deal now starting to come into fruition the outlook is positive. A successful result at Sol would be good but appraisal of the existing discovery at Indico is also very important whilst the drilling at Platanillo is clearly having very meaningful results. All in all the company is set fair and the share price, like a number of others looks way too cheap.
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