AMER.L Regulatory News (AMER)

30 Nov 2007 07:01

Amerisur Resources PLC30 November 2007 30th November 2007 Amerisur Resources PLC ("Amerisur" or "the Company") Operations Update Introduction Amerisur, the oil and gas explorer and developer focussed on South America, ispleased to announce an acquisition and proposed acquisition which will secure100% control and benefit of the Fenix block and removal of a profit shareagreement on the Plantanillo block. In addition, the Company is pleased toreport positive exploration developments within the Fenix block and encouragingprogress with the drilling programme within the Platanillo block. Acquisitions Fenix Oil and Gas S.A. The Company has acquired the entire issued share capital of Fenix Oil and GasS.A. for a total consideration of US$4.3m satisfied in cash from existingresources. Fenix Oil and Gas S.A. has a 35% working interest in the Fenix blockand no other material assets. The acquisition increases the Company's workinginterest in the block to 83.75%. The Fenix block is an area of 24,117 hectareslocated in the Middle Magdalena Basin of Colombia. The acquisition will completeon 6th December. Petex Offshore Inc The Company has signed heads of terms to acquire from Petex Offshore Inc theremaining 16.25% interest in the Fenix block. In addition, as part of theagreement Amerisur will no longer be required to pay Petex Offshore 15% ofAmerisur's net profits from the Platanillo block. The total consideration forthe transaction with Petex Offshore Inc will be 18,250,000 new ordinary sharesof 0.1p each in Amerisur. This transaction is expected to be completed shortly and a further announcementwill be made. The Fenix block is an exploration stage project and the Platanillo blockcontains contingent and prospective reserves. The effect of these transactions will be to increase the economic interest theCompany will have in the two blocks. Trading Update Fenix Contract The Company is currently interpreting the 103km2 of 3D seismic data acquired inthis block during 2007. This work will be completed during Q1 2008. However,an initial study focussed on the southern part of the survey, which adjoins theBonanza field operated by Ecopetrol, and which contains the La Tigra wells hasindicated some interesting opportunities. As an example, among these is thewell La Tigra-10, drilled by Sinclair -BP in 1969, where 30.1 API degree oil wasproduced from a formation at approximately 4,750 ft. Our initial analysisindicates that the structure tested by that well may have a significant closureabove the level at which the original well penetrated the reservoir. Inaddition, the target reservoir within the Lisama sands was not reached by thewell. This analysis indicates that reserves potential within the area studied(approximately 16 km2) may be in excess of 8 MMBO. The Company will shortlysubmit an application for an environmental license for the area, which isrequired before operations can commence. Platanillo Contact Platanillo-2, the second new well in the current phase of the Platanillocontract has been drilled to a total depth of 8,578ft. The Lower U sand, whichis productive in Alea-1 was encountered approximately 20ft higher than in Alea-1and 75ft higher than in Platanillo-1. Good shows of oil were observed at thathorizon and at several other zones within the reservoir. The condition of thewellbore in this directional well prevented full access of electric logs,however the indications during drilling and the fact that the productiveinterval was encountered higher indicated that the well should be tested.Accordingly, the well has been secured with 7" casing, which has been run tototal depth and cemented successfully. The rig Pride-17 has now been releasedand is currently being demobilised. The work over rig Pride-6 will be moved toPlatanillo-2 during the first week of December and will be used to test thewell. The use of the work over rig will facilitate the testing phase and inaddition is a more economic alternative. The testing programme will be definedafter acquiring further electric logs through casing, and it is expected that atleast 2 separate zones will be tested. The Company expects that programme tobegin within the next 15 days. During the drilling of Platanillo-2, Alea-1, currently undergoing Long TermTesting, has been in intermittent production, having been closed in duringcertain operations to ensure that such activities were not impaired. The wellis currently producing at a controlled rate of approximately 70 BOPD on a 12/64"choke. Amerisur holds a 25% working interest in the Platanillo 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. Giles Clarke, Chairman of Amerisur commented: "I am very pleased with the increase in our holding in the Fenix block, where webelieve there are exciting opportunities to be exploited in the near term. Inaddition, the Platanillo drilling programme is progressing well and we lookforward to updating shareholders with the results of Platanillo-2." 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