AMER.L Regulatory News (AMER)

26 September 2013

Amerisur Resources Plc ("Amerisur", "the Company" or "the Group")

Unaudited Interim Results for the six months ended 30 June 2013

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, announces results for the six months ended 30 June 2013 (the "Period").

Highlights:

· Revenue US$64.4m (H1 2012: US$6.0m)

· Operating profit US$30.9m (H1 2012: US$1.2m)

· Profit before tax US$29.1m (H1 2012: US$0.4m)

· Cash position at period end US$40.4m (2011: US$11.2m), all H2 2013 and 2014 commitments and planned programmes fully funded

The first half of 2013 has seen a continuation of the very successful Platanillo drilling with seven new wells, three of which were side track wells on top of the four new wells drilled in the Platanillo block in 2012. The results of that programme have been very encouraging as we continue to delineate the size of the oil field and as we have considerably de-risked the middle sector of the block which to date remains unappraised. The drilling results have been at the top end of management's estimates with our 100% success rate in Platanillo still standing.

Production in the first half was 672,533 barrels of oil, or 3,715 BOPD, with significant momentum of production growth with the new wells coming on stream as we go into the second half.

Following receipt of an independent reserves report as at 31 December 2012 undertaken by Petrotech Engineering Ltd using the standards set by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers, the Company reported that Platanillo field 2P reserves more than tripled from 7.7 to 29.9 MMBO. Additionally the independent assessor calculated 3P reserves at 46 MMBO. Importantly, the upgrade came following just four of the Platanillo wells and the Board expects a significant uplift in 2P and 3P reserves when this exercise is repeated at the year end and announced in March 2014.

In country, John Wardle the Company's CEO, has pulled together a first rate operational team which has worked tirelessly to deliver the results. This work has been undertaken professionally, efficiently and safely and I congratulate them on their hard work, attitude and importantly, their engagement with the local communities.

Whilst the main focus of the team has been on the safe and efficient drilling in Platanillo, progress has been made in our other assets Putumayo 12, Fenix and in Paraguay.

Platanillo

Platanillo-1, drilled in 2007, and not tested by the previous operator, ECOPETROL, was re-entered and was sidetracked to a location approximately 2,485ft to the east. The objective of this sidetrack was to further delineate the oil columns in the Platanillo reservoirs and potentially to provide a water injection facility for the field. This well, named Platanillo-1 ST1, encountered a 22ft net pay interval in the U sands, of which 7ft was perforated, producing 530 BOPD on test.

The well Platanillo-10, the sixth new well of the current Platanillo drilling programme and located on the Platform 5 South pad (5S) was drilled to a total depth of 8,715ft MD using the Latco-01 drilling rig. Platanillo-10 was a directional well, deviated approximately 1,950ft north east of platform 5S. The well encountered an interval of 72ft Gross, 45ft net indicated pay in the U sand and 14ft gross, 12.5ft net in the T sand. An interval of 32ft in the U sand was perforated with tubing conveyed guns and the well flowed 1,800 barrels of 31.2° API oil per day over a controlled choke with 55 psi at the wellhead and trace water.

Following Platanillo 10, the Latco-01 rig was skidded to drill well Platanillo-11. The well Platanillo-11, located on Platform 5 South (5S) was drilled to a total depth of 8,733ft MD. Platanillo-11 is a directional well, deviated approximately 1,697 ft south east of platform 5S. The well encountered an interval of 95 ft Gross, 49.5 ft net indicated pay in the U sand and 34 ft gross, 17 ft net in the T sand. As predicted by our geophysical model, the N sand was not well developed at this point. Platanillo 11 produced at a controlled rate of 1,500 BOPD with trace water in natural flow.

Following Platanillo 11, the Latco-01 rig was skidded onto the next slot within the 5S location and drilled Platanillo-12. Platanillo-12 was a directional well whose reservoir target is located 1,837ft to the south west of the 5S location. The well encountered an interval of 65 ft in the U sand and produced at 2,371 BOPD on test from the U sand.

The Latco-01 rig was skidded onto the next slot within the 5S location and spudded well Platanillo-12. Platanillo-12 was a directional well with the reservoir target located 1,770ft to the south east of the 5S location. It was drilled to a total depth of 8,634ft MD and completed for production encountering an interval of 65ft gross, 34ft net indicated pay in the U sand. An interval of 14ft in the U sand was perforated with tubing conveyed guns and the well flowed naturally 2,371 barrels of 31.8° API oil per day (BOPD) over a controlled choke with 166 psi at the wellhead and trace water. The well was placed on controlled production at approximately 1,450 BOPD with 217 psi at the wellhead, in line with good reservoir management principles.

Alea-1, drilled in 1988 and re-entered in 2007 by ECOPETROL, was sidetracked to a location approximately 1,008ft to the north west of the original well location. This well, named Alea-1R ST1, encountered a gross pay interval of 85ft and 40ft net pay interval in the U sands. The T sand exhibited 18ft gross and 8.5ft net. Alea-1R ST1 was a success and has been placed on production, producing 700 BOPD at a controlled rate with 20% water cut, in line with expectations from the log interpretation.

Post completion and testing of Alea-1R ST1, the Serinco D-10 drilling rig was moved to the Platanillo-2 well in the same location in order to side track it. It was planned to re-enter and sidetrack that well to a structurally more favourable position for oil production.

 Platanillo-2 ST1 has been drilled to a depth of 9,396ft, entering the reservoir approximately 3,102ft south of Platform A. The well encountered 68ft gross, 39ft net of oil column in good quality U sands. This result further confirms the geological model and was in line with the pre-drill prognosis.

Infrastructure and export facilities

The Company continues to develop additional and new alternatives for oil delivery, and expects those options to allow a continued growth in production over the coming months.We aim to have a diverse portfolio of export options. These options include:

· Trucking to Orito - 94km, currently taking between 2,000 and 4,000 BOPD

· Trucking to Rio Loro - 308km, currently taking up to 5,000 BOPD

· Trucking to Dina - 428km, currently not being utilised

· Trucking to Vasconia - 750km, currently not being utilised

· Pipeline under the Putumayo river into Ecuador to use the SOTE system - up to 10,000 BOPD capacity initially

In the first half, the Company signed oil transport agreements with Cenit, PetroEcuador and OCP Ltd to facilitate exports of Amerisur crude oil through the Ecuadorian transport system, via the OSO, OSLA and OCP pipelines. These agreements form part of the Company's continuing efforts to create diversified, economically attractive and high volume export options. Meanwhile the Company is busy preparing the environmental and technical studies required to construct the under river connection and the flowlines which will connect Platanillo to the Ecuadorian system.

The expansion of the Platanillo field production facilities has made very good progress. Both 10,000 BO tanks in Platform 9S are in final commissioning before entering service later this month. The 10,000 BO tank in Platform 5S is currently 70% completed and is expected to enter service in October of this year. The enhanced surface separation and well lifting equipment is also being installed and will be progressively commissioned over the coming weeks. These changes will enhance the efficiency and flexibility of field operations, delivering even lower lifting costs, increased storage capacity and expanded export capability.

The well Platanillo-1 ST1 was worked over in order to test the potential for disposal of produced water within the Platanillo field. The productive zones were isolated and a 25ft interval of the Pepino formation, situated approximately 3,200ft above the U reservoir was perforated. Injection tests were performed with excellent results, 4,200 BWPD being injected at relatively low pressures. The well continues on a long term injection test. The success of this programme will lead to a significant reduction of water bearing traffic on the Platanillo road system, freeing up tankers and road space for oil production.

Put-12 (60% Amerisur and Operator)

The Board considers the Put-12 block, where the Company has a 60% working interest and is operator, as a major opportunity and a significant asset. It shares the same geology as Platanillo, with similar analogue fields to the south in Ecuador and is five times larger than the Platanillo block. Management have identified 10 leads on the existing seismic with the potential for 140 to 300MMBO of resources. The first half saw Phase 0 progress with scouting and social studies underway. The 2D and 3D seismic studies are fully funded and are likely to be shot in the first half of 2014, and the multiple well drilling programme is planned for late 2014.

Fenix (100% Amerisur)

Progress has continued on the Fenix block with the interpretation of the newly acquired 2D seismic data. The Company expects to drill a further exploration well in Fenix later in the year with a spud date in December 2013.

Paraguay (100% Amerisur)

Amerisur holds two exploration and production and three prospecting permits in Paraguay extending over 6.4mm hectares. The country offers very significant potential with the US Energy Information Administration estimating it has 62 TCF of unconventional gas reserves together with conventional prospects developed by Amerisur as an extension of the Lomos de Olmedo sub-basin of Argentina.

A gravity survey has been initiated in the western blocks in Paraguay. This survey, of 500 high precision stations, is being acquired in the prospection blocks in the Piriti-Pilar complex basin. Additionally the Company has performed geochemical analysis on cuttings from the Asuncion wells in the San Pedro block. There is potential for the Company to drill a well in the San Pedro block in 2014.

Financial Review

Revenue for the period increased to US$64.4m (H1 2012: US$6.0m). Profit before tax increased to US$29.1m (H1 2012: US$0.4m) and operating profit increased to US$30.9m (H1 2012: US$1.2m). At the period end, the Group had a cash position of US$40.4m (H1 2012: US$11.2m). All commitments and planned discretionary programmes for the remainder of this year and next are fully funded.

I would like to take this opportunity to thank our staff for their continued work, led by John Wardle the CEO and to thank shareholders for their continued support. I look forward to updating shareholders on progress as the year progresses.

Giles Clarke

Chairman

For further information please contact:

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 28 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Notes to editors

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay. Amerisur's strategy is to acquire, explore and develop large acreage positions in major underexplored basins located in South America. The Company's distinctive approach has been to own 100% of its assets at early stages in order to have full control over the fields' development. That requirement is now being relaxed as a sound production baseline has been established and in response to the widening opportunity set to which the Company has access.

In Colombia, the Company is operator and has a 100% working interest in the Platanillo block. The 11,341 hectare block is located in the Putumayo Basin, in the south of Colombia. The Company also has a 60% working interest and operatorship in block Put-12, a 55,000 hectare block which is adjacent to Platanillo and shares its geology. The Company also holds 100% of the Fenix block, a 24,117 hectare area in the Middle Magdalena Basin of Colombia. The Company has recently completed the acquisition of a 59.4km 2D seismic survey in the southern part of the Fenix block. In Paraguay, Amerisur is the largest acreage holder in the country, with 6.2 million hectares covering five 100% owned oil and gas permits in the Paraguayan part of the Chaco and Parana Basins.

John Wardle is CEO of Amerisur, having worked in Colombia since 1994, first for BP Exploration and subsequently for Emerald Energy. The Company is chaired by Giles Clarke and is listed on the AIM Market of the London Stock Exchange.

www.amerisurresources.com

Condensed consolidated statement of changes in equity

AMERISUR RESOURCES PLC

1. The Company

Amerisur Resources Plc ("the Company") is principally involved in the exploration for and production of oil and gas in South America.

The Company is a public limited company incorporated and domiciled in England and Wales. The address of its registered office is Amerisur Resources plc, Lakeside, St. Mellons, Cardiff, CF3 0FB, United Kingdom.

The Company has its listing on the AIM Market ("AIM") of the London Stock Exchange.

2. Basis of preparation

These unaudited consolidated interim financial statements are for the six month period ended 30 June 2013. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group for the period ended 31 December 2012, which were prepared under International Financial Reporting Standards ("IFRS") as adopted by the European Union ("EU").

The consolidated financial statements have been prepared under the historical cost convention except for share based payments which are valued at the date of grant.

These interim consolidated financial statements have been prepared in accordance with accounting policies consistent with those set out in the Group's financial statements for the period ended 31 December 2012. These extracts do not constitute statutory accounts under s434 of the Companies Act 2006 (the "Act").

The Company's consolidated statutory accounts for the period ended 31 December 2012 have been filed with the Registrar of Companies. Those accounts have received an unqualified audit report and did not contain statements or matters to which the auditors drew attention under the Act.

Foreign exchange gains of $0.938m have been reclassified from other administrative expenses to finance income in the income statement for the 12 months to 31 December 2012 to more accurately reflect the trading operating profit of the group. This treatment has been consistently applied in the 6 months to 30 June 2013.

AMERISUR RESOURCES PLC

3. Segmental reporting

Segment Reporting

Our management information system produces reports for the Board grouping financial performance under the following business areas:

· Colombia

· Paraguay

· United Kingdom

All business areas are responsible initially for the exploration and evaluation of oil reserves and then the development and production of oil wells. As permitted by IFRS 8, since these business areas are deemed to have similar economic characteristics and are similar, if not the same, in all of the following:

· business areas derive their revenue from the supply of crude oil,

· the production and distribution process is the same across all business areas,

· business areas supply to similar customers,

· all business areas are subject to the same regulatory environment

The business areas have been aggregated into a single reportable operating segment, namely oil exploration and development. Each month the CODM is presented with financial information prepared in accordance with IFRS as adopted in the EU and the accounting policies set out in Note 2 to the financial information as such information regarding this operating segment has already been disclosed in the financial statements.

In the period, a single customer contributed the entire revenue.

Geographical information

The revenue split is based on revenue by origin by supply. The non-current assets total excludes the deferred tax asset.

4. Earnings / (Loss) per share

\* The diluted loss per share does not differ from the basic loss per share as neither the exercise of share options, nor the conversion of the loan stock, would have the effect of reducing the loss per share and are therefore not dilutive under the terms of IAS 33.

5. Goodwill

The Group has goodwill resulting from past business combinations as follows:

The Directors have reviewed the carrying value of these intangible assets and consider that no impairment is required. 

AMERISUR RESOURCES PLC

6. Other intangible assets

Deferred exploration costs

The Group has made investments in deferred exploration costs as follows:

The Directors have reviewed the carrying value of these intangible assets and consider that no impairment is required. 

7. Share capital

8. Events after the balance sheet date

No significant events occurred after the balance sheet date.