5 Aug 2009 07:00
5th August 2009
Amerisur Resources Plc ("the Company")
AGM Statement
Amerisur Resources Plc, the oil and gas explorer and developer focused on South America, holds its Annual General Meeting ("AGM") today at 10.00am.
At that meeting, Giles Clarke, Chairman will make the following comments:
"We made satisfactory progress in the year as we continued to develop Amerisur into being a stable, well funded business focused on generating cash flows, delivering production and increasing our exposure to low risk, high impact prospects.
"We have strong cash reserves, will generate good cash flow and have established reserves with significant appraisal upside and believe there are major opportunities in Colombia and Paraguay to pursue. We are confident that there will be increased newsflow over the year ahead and that our efforts will deliver value for our shareholders."
John Wardle, Chief Executive Officer will give the following update:
"We focused on developing our positions within our existing assets during the year in Colombia and Paraguay; which we believe offer the right balance of risk and reward for our shareholders.
"Platanillo remains our most advanced contract with respect to commercial production. We have established up to 900,000 bbl of recoverable reserves from the two existing wells within the lower U sand only. Furthermore we have established new contractual systems which greatly reduce unit operating costs.
"A water handling and disposal system has been designed and installed which should enable us to re-commence production at higher flow rates than achieved during the Long Term Test.
"We anticipate the systems we have installed will generate significant revenues once we re-establish production and we expect the company will be operationally cash flow positive.
"We will commence commercial production from the wells once our environmental license is awarded.
"On Fenix, we have commenced civil engineering works and look forward to spudding the first new well on this block, Iguasa-1 during September 2009.
"In Paraguay we have obtained encouraging results from our surface geochemical sampling programme which indicate hydrocarbon anomalies which align with structural features identified from seismic mapping, thus strengthening the prospectivity in the San Pedro block. We plan to extend that survey to provide additional coverage over the principal leads."
Ends
Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 24 years experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.
ENQUIRIES:
| Billy Clegg/Caroline Stewart, Financial Dynamics | Tel: +44 (0)207 831 3113 |
| Jerry Keen/Lindsay Mair Astaire Securities | Tel: +44 (0)20 7448 4400 |