26 Oct 2009 07:00
26 October 2009
Amerisur Resources Plc ("the Company")
Colombia Update
Production recommences at Platanillo
Fenix current contract phase extended to 21st February 2010
Iguasa-1 progressing according to plan
Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce an update regarding operations in Colombia.
The Company has successfully completed the temporary contractual and licensing arrangements necessary to re-establish production in the Platanillo block. As such Amerisur placed Alea-1R on production during the last week. Platanillo-2 was also placed on production on Sunday 25th October. The wells are currently being monitored and allowed to stabilise before adjusting injection rates to optimise production levels. The Exploitation Environmental License process is proceeding favourably, and this is expected to be completed during December 2009.
The Company received confirmation from the Agencia Nacional de Hidrocarburos (ANH) that the termination of the second phase of the Fenix E&P Contract would be extended to 21st February 2010 (this previously fell on 11th November 2009). This extension compensates a delay caused by negotiating certain terms of the environmental licence with the Ministry of Environment (MAVDT) regarding specific environmental issues.
Following the announcement of the spudding of the well Iguasa-1 on 19th October, the Company is pleased to confirm that the operation is proceeding according to plan and drilling had reached a depth of 2,365ft at noon 25th October, with one casing successfully set and cemented. This is the company's first new well in the Fenix Block and is expected to take approximately 30 days in total to drill and log.
Giles Clarke, Chairman of Amerisur Resources Plc said:
"These are all positive and encouraging steps which are the result of the planning and preparatory work we have performed over the last year or so. The results move us nearer to the Company's objective of becoming an important explorer and producer in the region. Progress at Fenix is encouraging, where the actual drilling results are very much in line with our geological prognosis in this complex area. The shows of oil and gas we have observed to date are also encouraging, and we look forward to continued good progress into the deeper sections of the well. The replacement of the time we spent to perfect the terms of the Environmental License is also welcome, since we will have additional time to review the results of Iguasa-1 before the end of the phase. The recommencement of production at Platanillo is significant, where our increased interest now gives us 100% of the post-royalty revenue from those wells. Our technical team have worked very hard to re-engineer, restructure and thus control the operational cost base at Platanillo, which should demonstrate important cash flows in the immediate future. I look forward to updating shareholders as results continue to accrue in this very exciting period of growth for the Company"
The Platanillo block is located in the Putumayo Basin of southern Colombia, and is held 100% by Amerisur Resources Plc through its subsidiary Amerisur Exploracion Colombia under an Exploration and Production contract with ANH. The contract is currently in the Exploitation Phase.
The Fenix block, located in the Middle Magdalena Valley Basin of Colombia is owned and controlled 100% by Amerisur Resources Plc through its subsidiaries under an Exploration and Production contract with ANH. The contract is currently in the second Exploration Phase.
ENQUIRIES:
| Billy Clegg/Caroline Stewart, Financial Dynamics | Tel: +44 (0)207 831 3113 |
| Jerry Keen/Lindsay Mair, Astaire Securities Plc | Tel: +44 (0)207 448 4492 |