AMER.L Regulatory News (AMER)

26 March 2019

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

Operations Update

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America (LSE: AMER), provides an update on operations in Colombia. 

CPO-5 (WI 30%): Exploration Drilling Update

The Calao-1X exploration well was drilled to a final depth of 11,445 feet, the LS3 reservoir was logged and no hydrocarbon potential was identified. The Company analysis indicates that the formation was encountered deeper than prognosis and the well was located in an area without closure. The well has the potential to be used as a water disposal well in the future. Amerisur and the Operator are currently integrating the results of this well into the general geophysical model while reviewing the model applied for the well Pavo Real-1. Meanwhile it is planned to drill a further appraisal well within the Indico structure.

Platanillo (WI 100%): Workover Update

The Company continues to optimise production at Platanillo with a workover completed on Platanillo-8 to install a selective completion. This allowed an 8 foot interval of the Lower U sand to be perforated and produced with existing production from the T sand. That interval is producing in a stable manner at 820 BOPD with an expected water cut of 17%.

The workover rig has now been moved to Platanillo-2, where it is planned to install a second selective completion and perforate the T sand, thus allowing both U and T sand to be produced simultaneously. This same operation will then be performed on Platanillo-7.

Following the Platanillo-7 workover, the Company plans the drilling of a new infill well, Platanillo-26. That well will target an undrained area, identified on seismic, to the south of existing wells on the Pad 3N.

It is then planned to re-enter Platanillo-22 and 21 to perform sidetracks to increase the productive potential of those wells.

Production:

Through Q1/19 working interest production is expected to average around 4,600 BOPD. This reflects the short term impact of production from Indico-1 being choked back (from around 1,100 BOPD to 330 BOPD net) due to operational requirements during the drilling of Calao-1 from the same drilling pad. At Platanillo production averaged 3,000 BOPD with OBA throughput around 2,000 BOPD as the government completed recovery of unclaimed royalty barrels outlined in the Company's announcement dated 22 January 2019. This process should conclude by month end.

John Wardle, CEO of Amerisur Resources said:

"A disappointing result from Calao, however the information obtained from the well is allowing us to further refine our model in this important area, where we have already established material reserves through the drilling of Mariposa-1 and Indico-1. It is important to ensure that we fully re-evaluate Pavo Real-1X before committing to drill, and Amerisur has recommended to the Operator that drilling focus should return to the Indico structure for the moment, with the drilling of Indico-2, a low risk appraisal well. The Calao result has no impact on the previously disclosed CPO-5 reserves for year-end 2018.

"The result of the Platanillo-8 workover was very positive, and we expect further success as our multi-well programme continues in that field. We also believe that the infill well Platanillo-26 is a low risk option to augment production in Platanillo and look forward to updating the market as that programme progresses."

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 33 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer. 

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

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About Amerisur Resources

Amerisur Resources is an experienced Colombian Operator with an extensive, strategic acreage position in the underexplored Putumayo with Occidental Petroleum ("Oxy") and a strategic acreage position in Llanos in CPO-5 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 in the Putumayo with Mariposa and Indico in the Llanos basin that together generates 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.