7 May 2019 07:00
7 May 2019
Amerisur Resources Plc
OBA Third Party Transportation Approvals
Highlights
· Approvals in place to transport third party volumes through OBA
· Creates the potential for a material revenue generating opportunity
· Initial volumes to be sent shortly, building through H2/19 to around 2,000BOPD
Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America (LSE: AMER), is pleased to announce that the company has received all the required approvals to begin transportation of third-party crude via the 100% owned OBA pipeline system to Ecuador. Access to this lower cost route to market for Putumayo Basin production in southern Colombia has the potential to generate material revenues for the Company.
Facilities Ready
Amerisur will purchase oil from third party producers at the existing Platanillo reception facilities based on the sales price at Esmeraldas, minus a negotiated margin. The oil will be sold subsequently in a back to back arrangement through an existing oil sales agreement. The Company takes no commodity price risk.
The OBA has a technical capacity of 50-70,000 BOPD with currently installed export pump capacity of 18,000 BOPD. The minimum transport capacity through the RODA is 9,000 BOPD.
Commercial Terms Agreed
The company has reached agreement with another producer in the Putumayo Basin to start crude transportation. Initial volumes are expected to arrive later this month and build, as the system is proved, to around 2,000 BOPD through H2 2019. Third party oil will be received at existing Platanillo field facilities, where it becomes Amerisur owned and is then transported via the OBA to the Amazonas Oil Pipeline System (RODA) to be dispatched, from Lago Agrio, to the port of Esmeraldas.
John Wardle, CEO of Amerisur Resources said:
"These approvals create a consistent revenue generating opportunity from the OBA, further to material cost savings delivered since operations started in Q4 2016. In addition, the ability to transport additional volumes, including third party oil through the Ecuadorian network was a significant factor in securing the Occidental farm-in deal. This represents a major step forward in the profile of the Putumayo Basin".
The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
Ends
Enquiries:
Nathan Piper, EVP, Head of Business Development and Comms Amerisur Resources
| Tel: +44 (0)330 333 8273 |
Billy Clegg/Kimberley Taylor | Tel: +44 (0)203 757 4983 |
Camarco
| |
Callum Stewart/Nicholas Rhodes/Ashton Clanfield Stifel Nicolaus Europe Limited | Tel: +44 (0)20 7710 7600 |
Chris Sim/Alex Ruffman/Tejas Padalkar | Tel: +44 (0)207 597 4000 |
Investec | |
Paul Shackleton/Dan Gee-Summons Arden Partners Plc
| Tel: +44 (0)207 614 5900
|
About Amerisur Resources
Amerisur Resources is an experienced Colombian Operator with an extensive, strategic acreage position in the underexplored Putumayo Basin with Occidental Petroleum ("Oxy") and a the prospective Block CPO-5 in the Llanos Basin with ONGC. Amerisur is the 100% owner and operator of the OBA pipeline, a key piece of strategic, cross-border export infrastructure delivering oil from the Putumayo in Colombia into Ecuador. Amerisur produces from three fields, Platanillo, Mariposa and Indico that together generate cash flow to fund its work programme. Amerisur has recently announced a potentially transformational result at Indico-1, which significantly exceeded expectations - 283 feet gross, 209 feet net oil column without an oil-water-contact.