AMER.L Regulatory News (AMER)

12 Oct 2007 07:00

Amerisur Resources PLC12 October 2007 12th October 2007 Amerisur Resources PLC ("the Company") Operations Update Amerisur Resources Plc ('Amerisur'), the oil and gas explorer and developerfocused on South America, is pleased to give the following update on operationsin Colombia. Highlights • Re-entry to Alea 1 successful - production and Long Term Testing to commence during October • Platanillo 1 encounters transition zone and defines limits of field • Platanillo 2 to be drilled shortly to further evaluate structure The re-entry of the Alea-1 well has been completed without operational problemsusing the work over rig Pride 6. The well was flowed at a controlled rate ofapproximately 160 BOPD through a 1/4" choke to observe fluid properties (duringinitial testing of the well in 1988, flow rates in excess of 500 BOPD through a9/16" choke were recorded). The crude oil observed at surface has an API gravityof approximately 32 degrees and zero water. The well has now been closed inagain to conduct sampling and analysis for purposes of reservoir engineering andassessment of the reserves potential of the field. The well is expected to return to production and begin Long Term Testing (whenthe full production potential of the well will be examined) following themobilisation of the drilling rig Pride 17 to the Alea-1 location, as discussedbelow. For operational safety reasons recommencement of production will not takeplace until after the drilling rig Pride 17 has been installed on the location.This is expected to be complete within the next 15 days. Oil production will be delivered to the Santana terminal, operated by GranTierra Energy Colombia for subsequent export. Platanillo-1, the first new well in a 2 well programme, has been drilled to atotal depth of 8,390ft. The reservoir section was encountered 55ft deeper at thePlatanillo-1 location which is located approximately 2,200m from Alea-1, andanalysis of electric logs indicates that the well might be close to thetransition zone between the oil and water columns of the field. The well hastherefore been temporarily plugged to allow the rig to be released to drillPlatanillo-2. Platanillo-1 remains a potential candidate for a subsequentre-entry and sidetrack to evaluate reserves up-dip of the current reservoirentry point. The drilling rig Pride 17 is currently being moved to the Alea-1 location.Platanillo-2 will be drilled directionally from that location, towards aculmination which is expected to be higher on the structure than Alea-1. Theobjective of this exploration well is to examine the potential for additionalreserves in a separate reservoir, the upper "U" sand and confirm the continuityof the lower "U" reservoir. Platanillo-2 will be drilled to a depth ofapproximately 8,300ft over a period of around 30 days. Subsequent testing of thewell will be performed using the existing facilities installed for Alea-1. Amerisur Resources Plc holds a 25% working interest in this block under thePlatanillo E&P Contract with the Colombian National Hydrocarbons Agency (ANH).Repsol YPF holds 35% and Ecopetrol S.A.(40%) is the operator. Dr John Wardle, Amerisur's Chief Executive Officer commented: 'The initial data from Alea-1 are encouraging, and within the next few weeks wewill be able to test the well to its full capacity. The results fromPlatanillo-1 are also extremely important for the definition of the size of thefield at Platanillo, since this firm knowledge allows us to make the bestappraisal and development decisions in the future. With the addition of theinformation from Platanillo-2 we will have a very clear picture of the southernpart of the field, which we can then proceed to evaluate through a Long TermTesting programme. Giles Clarke, Amerisur's Chairman said: 'The re-entry of Alea 1 is a significant moment for Amerisur, marking the firstoil production in our blocks. We look forward to updating shareholders as wemake further progress in the region.' Ends Competent person: Technical information in this announcement has been reviewedby John Wardle Ph.D., the Company's Chief Executive. John Wardle has 23 yearsexperience in the industry, having worked for BP, Britoil, Emerald Energy andPebercan, and is a trained drilling engineer. ENQUIRIES: Billy Clegg/Caroline Stewart, Tel: +44 (0)207 831 3113Financial Dynamics Jerry Keen/Rhod Cruwys, Tel: +44 (0)20 7448 4400Blue Oar Securities Plc This information is provided by RNS The company news service from the London Stock Exchange