AMER.L Regulatory News (AMER)

24 July 2018

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

Operational Update

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide an update on operations in Colombia.

Following a technical review of well performance, a work over of the Platanillo-22 well has been initiated in order to recover production capacity in this important well. The Platanillo-22 well has been producing since April 2017, however following a pump change in the well in April 2018, fluid production declined. The Company conducted an organic treatment on the well in June 2018 which, while partially successful, did not fully resolve the fluid decline issues. The Company therefore took the decision to conduct a workover on the well in an effort to permanently resolve the production decline.

Given limited workover rig availability currently in the area, the Rig D-10 (the rig that has been used to drill the Company's exploration and development wells at Platanillo) was partially mobilised to the well in order to perform the workover. The well completion has now been removed from the well and electrical logs are being run to measure the integrity of cement, the condition of the perforated intervals and the reservoir oil saturation, amongst other parameters. The forward programme to return the well to production will be decided post analysis of these logs. Should the forward programme involve an isolation and re-perforation of the reservoir interval as per management expectations, the operation is expected to take approximately ten days.

Civil works for the Pintadillo-1 location in the Platanillo block are almost complete following heavy rains and the conductor casings will be installed in the next few days. Following the Platanillo-22 work over, Rig D-10 will be mobilised to location to drill Pintadillo-1. The N Sand anomaly at Pintadillo is one of four such anomalies identified by the Company in the central part of the Platanillo block. It is estimated to hold P50 resources of 11.44 mmbo.

In the CPO-5 block in the Llanos basin, which is operated by ONGC, civil works have now been completed and the well Indico-1 is expected to spud in Q3 2018 as previously guided. Indico-1 is targeting the same play as the successful Mariposa-1 well but is further up dip in a larger structure. The Operator estimates a gross P50 recoverable resource at Indico-1 of 10.3 mmbo.

In the PUT-8 block, the operator Vetra has informed Amerisur that the well Miraparriba-1 is expected to spud in Q3 2018 as previously guided. The Miraparriba structure is a low risk U and T sand light oil structural target covered by 3D seismic with gross P50 recoverable resources estimated at 4.4 mmbo by the Operator.

The Chiritza re-pumping station project continues to advance well. The tie-in of the Chiritza manifold to the RODA line is expected to be performed shortly. Once commissioned and in operation, the Company will have an increased minimum transport capacity with Petroamazonas EP and RODA of 9,000 bopd.

ENDS

Enquiries:

Notes to editors

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay and production from two fields in Colombia. In 2016 Amerisur successfully built and is 100% owner of the strategic OBA oil transfer line into Ecuador.

In Colombia, the Company is operator and has a 100% working interest in the Platanillo block which includes the Platanillo producing field in the Putumayo basin, and holds a 30% non-operated working interest in the CPO-5 block containing the Mariposa-1 producing field in the Llanos basin.

Amerisur has a strong position in the Putumayo basin and has a cluster of near term activity assets around the OBA export line.

Standard: These assessments are made in accordance with the standard defined in the SPE/WPC Petroleum Resources Management System (2007).

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 32 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

www.amerisurresources.com 

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