AMER.L Regulatory News (AMER)

4 April 2018

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

Operations 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 and Ecuador.

Highlights

· Amerisur made its first complete tanker loading from Esmeraldas on 22 March, loading 350,000 bo aboard M/T Kerala, which was sold to Shell for approximately US$21mm. This revenue has been received by the Company

· Modification of the Platanillo Environmental License for N Sand drilling has been approved, allowing the building of a 3.8 kilometre access road and six well pads, holding up to seven wells per pad

· Rig mobilisation to, and spudding of, the Pintadillo-1 well, the first of up to three wells targeting the N Sand anomaly within the Platanillo block, to commence post completion of civil works, expected to take approximately 65 days

· N Sand anomaly at Pintadillo-1, is one of four such anomalies identified by the Company in the central part of the Platanillo block. The well is targeting estimated P50 resources of 11.44 mmbo

· Regulatory permission received to drill the Miraparriba-1 well in the Put-8 block, a low risk U and T sand light oil structural target, with estimates of P50 gross resources of 4.4 mmbo. The well is expected to spud in early May 2018

· Indico-1, the first new well at CPO-5, estimated to hold P50 gross resources of 10.3 mmbo, is expected to spud by May 2018

John Wardle, CEO commented:

"There is strong momentum at Amerisur as we prepare to begin our active, fully funded drilling programme across our extensive licence portfolio in the Putumayo basin, with the spudding of Pintadillo-1 in the Platanillo N Sand, Miraparriba-1 in Put-8 and Indico-1 in CPO-5 to commence in the near future.

"We have been busy performing preparatory works across our licences to ensure that on receipt of the relevant environmental and regulatory approvals, we could move at pace to begin drilling. It is anticipated that the drilling of Pintadillo-1, the first of up to three wells targeting the N Sand anomaly and estimated to hold P50 resources of 11.44 mmbo, will commence post completion of civil works and rig mobilisation. On success, further wells will be drilled back-to-back and production will be delivered to the Platanillo facilities for export via Amerisur's 100% owned OBA pipeline.

"Miraparriba-1 in Put-8, which lies adjacent to the west of the Platanillo field and is a low risk prospect covered by 3D seismic estimated to hold P50 resources of 4.4 mmbo, is expected to spud in early May 2018 and Indico-1, targeting the same play as the recently successful Mariposa-1 well in CPO-5, is also expected to spud by May 2018. Indico-1 is the first of three wells on three separate structures planned in 2018.

"I am also very pleased to report the loading of our first complete tanker load from the Esmeraldas port in Ecuador aboard M/T Kerala. Amerisur had previously shared cargoes with other exporters. This is a significant milestone in our development as an important exporter of our crude oil."

Platanillo N Sand Drilling (100%, Operator)

The Company is pleased to report that the modification of the Platanillo Environmental License has been approved by the Environmental Licensing Agency ("ANLA"). This modification allows the building of a 3.8 kilometre access road and six well pads, with up to seven wells per pad.

Following the compelling attribute analysis and in line with other local discoveries, Amerisur believes that there may be strong N sand development in central and northern parts of the Platanillo block. Accordingly, the Company submitted a modification request to the ANLA to allow the Company to perform drilling and production operations together with civil works to enable it to progress the development of the N Sand.

In the period leading up to approval Amerisur performed a number of preparatory works, including the stockpiling of materials required for the civil works, which have now commenced. The construction is expected to take approximately 65 days, after which Rig D10 will be mobilised to drill Pintadillo-1, the first of up to three wells targeting the N Sand anomaly, which has been identified on 3D seismic. Pintadillo-1 will be a slightly deviated well, with a planned total measured depth of 8,448ft, and is expected to take approximately 21 days to drill and log.

If successful, the well will be tested and produced fluids delivered to the Platanillo facilities for export via the OBA system. In the event of a commercial discovery a second, deviated well will be drilled from the same pad to evaluate the accumulation. The Company is also evaluating the potential for a third well to be drilled horizontally, should the reservoir encountered be suitable for this technology. The Company believes horizontal drilling could significantly increase the drainage area, and production per-well.

The N Sand anomaly at Pintadillo is one of four such anomalies identified by the Company in the central and northern part of the Platanillo block. The Pintadillo-1 well is targeting estimated P50 recoverable resources of 11.44 mmbo.

Put-8 Drilling (50%, non-operated)

Amerisur has been informed by the Operator of block Put-8, Vetra Exploration and Production (50%), that regulatory permission has been received to drill the Miraparriba-1 well from the Cohembi-2 pad, an existing pad located in the adjacent Suroriente block (Vetra Exploration and Production 36.2% and Operator, Ecopetrol 48%, Gran Tierra 15.8%). The Suroriente block holds the Cohembi Field, which produces from the N Sand. Miraparriba-1 will be drilled as a directional well to the Miraparriba structure within the Put-8 block.

This agreement removes the requirement to obtain an environmental licence for the drilling of the well, thus reducing the time before drilling can occur. 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 well is expected to spud in early May 2018.

Put-8 is a 102,799 acre block which lies adjacent to the west of the Platanillo field.

CPO-5 (30%, non-operated)

As previously reported, the Company plans to drill three wells on three separate structures (Indico, Aguila and Sol) within the CPO-5 block during 2018. The Operator (ONGC Videsh Ltd, 70%) reports that good progress is being made on the civil works and other preparations to facilitate the wells, and the first well, Indico-1, is expected to spud by May 2018. Indico-1 is targeting the same play as the successful Mariposa-1 well, but is further up dip. The Operator estimates a gross P50 recoverable resource at Indico-1 of 10.3 mmbo.

CPO-5 is located to the south of the prolific Llanos 34 block and to the east of the Corcel fields. The block includes the producing Mariposa-1 well and the evaluation area related to the Loto-1 oil discovery.

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 is currently producing approximately 6,500 bopd.

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 31 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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