TIDMAMER
RNS Number : 6393R
Amerisur Resources PLC
25 September 2017
25(th) September 2017
Amerisur Resources Plc ("Amerisur", "the Company" or "the
Group")
Interim Results
Amerisur Resources Plc, the oil and gas producer and explorer
focused on South America, is pleased to announce its interim
results for the six months ended 30(th) June 2017 (the
"Period").
Highlights:
Production and financial
-- Average H1 production 4,475 BOPD up 69% (H1 2016: 2,641)
-- 8 MMBO produced from Platanillo to date
-- Average realised sales prices during the six-month period
were $47.3 per barrel (FY 2016: $38.4)
-- Operating net back per barrel(1) $29.6 up 164% (FY 2016: $11.2)
-- Revenue $38.2m, up 57% (H1 2016 $24.4m)
-- Adjusted EBITDA(1) $7.6m, up 986% (H1 2016: $0.7m)
-- Net cash generated by operations $8.5m (H1 2016 -$1.8m)
-- Cash and cash equivalents $29.0m (FY 2016 $42.3m)
-- Talisman and Pacific acquisitions approved by ANH
Exploration and Appraisal success
-- Platanillo-22 drilled from Pad 2N, identifying an important
extension to the block, with an inferred deeper oil-water contact,
management estimate it is capable of delivering up to 7.82 MMBO of
recoverable reserves
-- Mariposa-1 discovery on CPO-5 - flowed at a stabilised rate
of 4,601 BOPD of 40.8 degree API oil in natural flow from a limited
perforation interval
-- Mariposa Long Term Test expected to commence shortly
Strengthened Board
-- Dana Coffield appointed as independent Non-executive Director in April
-- Alex Snow appointed as Senior Independent Non-executive Director in May
-- Victor Valdovinos, George Woodcock and Nigel Luson retired from the Board
-- Board now comprises two Executive Directors, five independent Non-executive Directors and a Chairman, exceeding
the expected level of independent director representation
Reserves
-- As at 31(st) December 2016, gross field reserves were 24.5
MMBO (2015: 23.7 MMBO), production of 0.809 MMBO in H1 2017
-- Board expects drilling activity on Platanillo in 2017 to
result in an increase in both 1P and 2P reserves
Outlook
-- Average production guidance for the full year revised to
approximately 5,000 BOPD, as a result of social issues in the
Putumayo region which have now largely been resolved
-- Current production in excess of 6,000 BOPD
-- Exit rate for 2017 expected to be in excess of 7,000 BOPD
-- Up to 16 wells by the end of 2018 all fully funded from
existing cash resources and operating cash flow generated from
activities
-- Drilling of Platanillo-25 from Pad-2N commenced
-- Three well drilling programme of N Sand Anomaly targeting
18.8 MMBO of resources to commence in Q1 2018
(1) See glossary in Note 9.
Giles Clarke, Chairman of Amerisur, said:
"During the period, we continued to deliver on our strategy of
building production and reserves through a large acreage position
within the under-explored but geologically prolific Putumayo Basin.
As well as increasing production significantly, in the first half
we also delivered multiple successes with the drill bit at
Platanillo and on CPO-5.
"Amerisur is well positioned with a strong balance sheet to
further build on our successes to date and continue to grow
production and reserves. Our broad portfolio provides the Company
with a significant amount of flexibility with the drill bit to
ensure we continue to deliver value in the current oil price
environment. We remain very busy targeting up to 16 gross wells by
the end of 2018 focusing on Pad 2N, Putumayo 9, Putumayo 8, CPO-5
and Putumayo 12, together with the N Sand anomaly wells on
Platanillo, all fully funded from existing cash resources and cash
generated from activities at $45 oil."
Enquiries:
Billy Clegg/Georgia Edmonds Tel: +44 (0)203 757 4980
Camarco
Callum Stewart/Nicholas Tel: +44 (0)20 7710 7600
Rhodes/Ashton Clanfield
Stifel Nicolaus Europe Limited
Chris Sim/George Price Tel: +44 (0)207 597 4000
Investec
Marcus Jackson Tel: +44 (0)207 653 4000
RBC Capital Markets
Standard
Estimates of reserves and resources contained in this
announcement were prepared using the standards set by the Oil and
Gas Reserves Committee of the Society of Petroleum Engineers /
World Petroleum Congress 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.
Inside Information
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.
Chairman's and Chief Executive's Statement
Introduction
We are pleased to announce Amerisur's 2017 half-year financial
results. During the period, we continued to deliver on our strategy
of building production and reserves through a large acreage
position within the under-explored but geologically prolific
Putumayo Basin, creating a wide and deep portfolio of exploration
opportunities. During the first half, we steadily increased
production from the Platanillo field and in turn exports through
the OBA, our wholly owned pipeline. We also strengthened the Board
and continued to achieve success with the drill bit.
Production Growth
Operationally our performance has been strong with production
levels in the period increasing steadily to 5,280 BOPD, with an
average cash opex and transport cost per barrel of $17.7 compared
to $27.2 in 2016. This is a result of increased OBA utilization,
reduced operating costs and improved selling prices. This delivered
$38.2m of revenue, $8.5m of net cash generated from operations and
$7.6m of adjusted EBITDA. Production averaged 4,475 BOPD while our
throughput through the OBA averaged 3,936 BOPD in the period,
constrained by equipment maintenance activities in the RODA system
of Ecuador and additional competing volumes within the northern
part of Ecuador. Our negotiations with Petroamazonas to increase
throughput continue to progress positively. Post-period end,
production was temporarily suspended at Platanillo from 10(th) -
28(th) July as a result of social issues in the field and region
following the ratification of the Colombian peace process in
December 2016. We used this downtime to perform regular maintenance
and enhancement works on the field to maximise the efficiency of
our production. A further short suspension, from similar causes,
was also experienced in early September. These issues have all now
been largely resolved by the Government and the producing wells at
Platanillo were carefully brought back on stream. We are currently
producing in excess of 6,000 BOPD, and average daily OBA throughput
when operating in September was 6,332 BOPD. A ramp up of production
is occurring through the second half of the year and we continue to
target an exit rate for 2017 in excess of 7,000 BOPD, primarily
driven by increased production from the ongoing, low-cost drilling
programme at Platanillo and CPO-5.
Exploration Success
Our drilling campaign within the Platanillo block has been
successful with Platanillo-22, drilled from Pad 2N, identifying an
important oil pool extension to the block, with an inferred deeper
oil-water contact expected to have the potential to deliver up to
7.82 MMBO of recoverable reserves in this northern structure and
further increase the value of this field. Further drilling will be
required to confirm the size of this reserve uplift. Our follow on
well, Platanillo-21, demonstrated a further good result and
consequently we have re-focused our forward drilling plan for the
second half of 2017 to accelerate drilling in the north of the
Platanillo Field, with the drilling of Platanillo-25 as previously
reported and the drilling of the exciting N Sand Anomaly wells. The
N Sand wells will be drilled from an entirely new pad further north
on the block and are targeting 18.8 MMBO of prospective
resources.
Alongside our continued success in the Putumayo region, we
drilled Mariposa-1, an exploration well in the Llanos CPO-5 licence
with our partner ONGC, where the preliminary results were very
encouraging. The well flowed at a stabilised rate of 4,601 BOPD of
40.8 degree oil in natural flow from a limited perforation
interval. Post-period end the well was classified as a discovery
and is currently about to enter a long-term test ("LTT") phase,
expected to commence shortly. Partners have agreed to the drilling
of a further well, Indico-1, in the first half of next year,
designed to test the Mariposa play further up dip, and further
wells are currently being planned in this exciting block, which
sits alongside the prolific Llanos-34 contract.
Board, Governance and People
The Board was significantly strengthened and refreshed in the
first six months of the year and has enhanced the right set of
complementary skills to deliver future growth.
At the beginning of the year the Board commenced a search
process to appoint two additional independent Non-executive
Directors: one with significant City experience and one with
considerable oil industry experience. The extensive and thorough
process, which was overseen by Chris Jenkins, an independent
Non-executive Director, and managed by Preng & Associates, a
leading executive search firm dedicated to the energy industry,
resulted in the appointment of Dana Coffield as an independent
Non-Executive Director and Alex Snow as Senior Independent
Non-executive Director in April and May respectively.
Dana Coffield has over thirty years of international E&P
experience encompassing North and South America, including
Colombia, North Africa, Middle East and South East Asia. He has
also joined the Remuneration Committee. Alex Snow has had a
successful career in the City and was most recently CEO of
Lansdowne Partners LLP, the leading institutional investor and
wealth manager and founder and CEO of Evolution Group Plc the
investment bank created in 2001 and subsequently sold in 2012 to
Investec for GBP230 million. Alex has joined both the Remuneration
and Nomination Committees.
During the period, Victor Valdovinos, George Woodcock and Nigel
Luson retired from the Board and we thank them for their valuable
contribution over the years. The Board of Amerisur now has two
Executive Directors, five independent Non-executive Directors and a
Chairman, exceeding the expected level of independent director
representation for an AIM listed Company.
Political and Social Developments
Following the ratification of the Colombian peace process in
December 2016 the Government continues to make positive progress
transitioning the country to peace and the disarmament of the FARC
is now officially complete. The implementation of the Government's
'Sustiticion de Cultivos Ilicitos - illegal crop substitution
programme', an important element of the peace process which
compensates farmers for the eradication of their coca crop,
initially resulted in social protests within the region and at the
Platanillo field. These issues have subsequently been largely
resolved by the Government and Amerisur remains committed to
supporting the peace process and the implementation of social
programmes within the local communities. As part of our long-term
commitment to social investment we have continued to invest in
sustainable alternative farming programmes. These include sweet
pepper, condiment pepper, cattle rearing and other activities
appropriate to the area. These investments provide local farmers
with resources and farming skills such that they can swiftly make
the transition to more socially desirable and profitable crops.
Within the Putumayo we continue to bring positive social and
economic benefits which impact positively on our ability to operate
in this socially complex area undergoing radical change for the
better.
Following the mud slide in Mocoa in the western Putumayo,
Amerisur was heavily involved with the response activities led by
the Colombian Authorities, providing specialist equipment, fuel,
fresh water in bulk and logistical support including helicopter
work and we have subsequently continued to help those communities
impacted by this natural disaster.
Current Trading and Outlook
As we proceed towards year end, we remain focused on ramping up
production and the export of our crude through the OBA pipeline.
Following downtime at Platanillo in July and September and the
slower than expected progress bringing Mariposa on stream, average
production guidance for the full year is revised to approximately
5,000 BOPD.
Amerisur is well positioned with a strong balance sheet to
further build on our successes to date and continue to grow
production and reserves. Our broad portfolio provides the Company
with a significant amount of flexibility with the drill bit to
ensure we continue to deliver value in the current oil price
environment. We remain very busy targeting up to 16 wells by the
end of 2018 focusing on Pad 2N, Putumayo 9, Putumayo 8, CPO-5 and
Putumayo 12, together with the N Sand anomaly wells in the
Platanillo block, all fully funded from existing cash resources and
cash generated from activities (based on an assumed average oil
price of $45). On success, all are capable of boosting our
production materially within this time frame. Target capex for 2017
and 2018 is estimated to be $23m and $59m respectively.
We are incredibly excited by the potential within our portfolio
and look forward to a profitable, cash flow positive second half
and beyond.
Giles Clarke John Wardle
Chairman Chief Executive
Review of Activities
Amerisur has an extensive and diverse portfolio of production
and exploration assets in Colombia with a strategic position in the
Putumayo basin, an under-explored area with significant field
potential, demonstrated by the Company's success to date in
Platanillo and its proximity to the Ecuadorian border and Ecuador's
prolific Oriente basin.
Amerisur has built its position in the Putumayo basin at low
cost and has a cluster of assets around its wholly owned OBA
pipeline including Platanillo, Put-8, Put-9, Coati, Mecaya and
Put-12, which are able to utilise this low-cost export route and
provide the Company with the flexibility to pursue exploration
opportunities capable of delivering significant value.
OBA Cluster % Other %
------------------------- ---- ------------------- ----
Operated: Operated:
Platanillo 100 Putumayo-30 100
Coati Temblon Field 100 Andaquies 100
Putumayo-9 (increased Tacacho (increased
from 40%) 100 from 49.5%) 100
Putumayo-12 60 Terecay 100
Coati block exploration
area 60
Mecaya 58
Paraguay 100
Non-Operated: Non-Operated:
Putumayo-8 50 CPO-5 30
------------------------- ---- ------------------- ----
Production
In the first half of 2017 production averaged 4,475 BOPD, with
an average cash opex per barrel (excluding transport costs) of
$12.8. Current production is in excess of 6,000 BOPD and the
Company remains on track to exit 2017 in excess of 7,000 BOPD which
will be driven primarily by increased production from the ongoing,
low-cost drilling programme at Platanillo and CPO-5. Average
production for H2 is expected to be between 5,000 and 6,000 BOPD
following the temporary suspension of production at Platanillo in
July and September 2017, as a consequence of social unrest in the
region, issues which have subsequently been largely resolved by
central Government.
Drilling and Well Operations Strategy
Amerisur remains focused on delivering increased production from
across its existing high quality portfolio of assets and
diversifying its production base.
The current drilling programme detailed below is focussed
on:
-- Continued efficient low risk development of the Platanillo Field at Pad 2N;
-- Drilling of the N Sand anomaly in the central part of the Platanillo contract area;
-- Drilling controlled risk exploration prospects within the OBA cluster blocks adjacent to Platanillo, with an
initial focus on Putumayo-9, Putumayo-8 and Putumayo-12;
-- Appraising and extending the Mariposa play in the CPO-5 contract.
OBA Pipeline
In August 2016, Amerisur achieved a key strategic objective, the
successful delivery of its wholly owned export pipeline, the OBA,
for the transport of Platanillo crude via the RODA system to Lago
Agrio for further onward transport to the port of Esmeraldas in
Ecuador. Amerisur has a throughput capacity under current agreement
with Petroamazonas of a minimum of 5,000 BOPD, with the export of
crude via the OBA commencing during October 2016. The average daily
throughput for the period was 3,936 BOPD due to reduced capacity
caused by equipment maintenance activities in the RODA system of
Ecuador and additional competing volumes within the northern part
of Ecuador. Through system optimisations and other factors in
Ecuador, throughput in August averaged 5,888 BO per operational
day, with a peak of 10,127 BO in a 24-hour period.
The Company's focus is to further increase the export of its
crude through the OBA and progress further commercialisation
options. The technical capacity of the transfer line is
approximately 50,000 BOPD and the system has a currently installed
export pump capacity of 19,200 BOPD. A third pump will shortly be
installed at Pad 9S, raising export capacity to 28,800 BOPD.
Negotiations continue with Petroamazonas regarding increasing
throughput via focussed investments in Ecuadorian
infrastructure.
Daily throughput is currently 6,500 BOPD and as a result of OBA
use average cash opex/bl including transportation has reduced from
$27.2 in 2016 to $17.7 in H1 2017 and will reduce to below $15 once
its throughput reaches 7,000 BOPD. The Company is confident of
obtaining capacity to transport further increased production levels
via OBA in due course, however the Company holds additional export
and sale options should production exceed transport capacity on a
day to day basis.
Capex and Forward Planning
Amerisur is focused on optimising its extensive acreage position
and capital allocation to maximise the near-term value in its
assets and has refocused its forward drilling programme. Following
the success at Platanillo-22 which discovered an important
extension to the Platanillo field, the Company has accelerated work
in the north of the field. Amerisur continues to target a minimum
of two further wells by the end of 2017, fully funded from existing
cash resources and cash generated from activities (based on an
assumed average oil price of $45) and expects total exploration and
development expenditure to be around $82.3m in 2017 and 2018, split
$23m in 2017 and $59.3m in 2018. This is broken down as
follows:
Timing Cost Target Guide
(Commencement) ($m) (MMBO)
------------------------------------- ------------------ ------- --------------
Capital expenditure to date:
------------------------------------- ------------------ ------- --------------
Platanillo 21 3.7
--------------------------------------------------------- ------- --------------
Platanillo 22 3.7
--------------------------------------------------------- ------- --------------
Platanillo 24 3.2
--------------------------------------------------------- ------- --------------
Mariposa-1 2.4
Planned capital expenditure 2017
Platanillo 25 Spudded 4.0 2
Platanillo 23 Q4 2017 4.0 2
Platanillo N Sands (civil works) Q4 2017 2.0
Planned capital expenditure 2018
Platanillo N Sands (3 wells) Q1 2018 16.5 19
CPO-5 (2 wells) Q1-Q2 2018 4.8 30-67
Putumayo 8 (2 to 3 wells) Q1-Q2 2018 10 10-23
Putumayo 9 (3 wells) Q3 2018 17 30
Putumayo 12 (3 wells) Q4 2018 11 83
Acquisitions
In March 2017, the Company further bolstered its position in the
Putumayo Basin and consolidated its portfolio around Platanillo,
adding discovered oil and offset exploration with large potential
through the acquisition of the outstanding working interest in the
Put-9 and Tacacho blocks plus 100% working interest in Terecay and
58% of Mecaya from Meta Petroleum Corporation and Pacific Stratus
Energy Colombia Corporation; subsidiaries of Pacific Exploration
and Production ("Pacific"), a Canadian listed company (recently
renamed Frontera Energy Corp.). The consideration for the
acquisition was US$4.85m in total which has been paid in cash from
existing resources. Additionally, a 2% overriding royalty interest
(ORRI) will be payable to Pacific Exploration and Production in
respect to Amerisur net production from the Terecay block and a
1.2% ORRI on net production from the Putumayo-9 block.
Platanillo - OBA Cluster
The Company is Operator and has a 100% working interest in
Platanillo, an 11,119-hectare block located in the Putumayo Basin,
in the south of Colombia.
To date, the Company has successfully drilled 18 wells and three
side-tracks in the main Platanillo structure from five pads
(Pads-9S, 5S, A, 1N, 3N) and two wells in a separate structure to
the north, which is a continuation of the Platanillo field but was
found to have a deeper oil-water contact, from one pad (Pad 2N).
The Company's wholly owned OBA transfer system transports
production from the Platanillo field under the Putumayo River into
the Victor Hugo Ruales pipeline infrastructure (RODA system to Lago
Agrio) in Ecuador, and then onwards to the port of Esmeraldas for
sale.
Platanillo main structure
At the beginning of the year, the Company successfully drilled
Platanillo-24 as an infill well on the most northern developed lobe
of the Platanillo main field structure, located between wells
Platanillo-7 and 17. The well was drilled under time and under
budget, to a total depth (TD) of 8,485 feet, achieving an offset of
1,275 feet to the east of Pad 3N. The reservoir section was logged
and initial log analysis indicated the presence of 67.5 feet gross,
38 feet net oil column in the U Sand formation. The analysis of the
T Sand indicates a 14 feet gross and 8 feet net oil column. The N
Sand was not well developed at this location, in line with the
Company's seismic attributes model. Platanillo-24 was tested and
placed on commercial production at a rate of approximately 420 BOPD
in natural flow. An interval of 7 feet was perforated in the Lower
U Sand only.
Following the successful delivery of the OBA pipeline, the
Company commenced a low-cost optimisation work programme across the
Platanillo main field structure, performing organic chemical
treatment to specific wells in order to maximise value from its
producing assets to ensure they reach their full potential and in
turn increase production to feed into the OBA system, exploiting
this low cost, wholly owned export route. During the period, an
organic chemical treatment was trialled on Platanillo-8,
Platanillo-24 and Platanillo-20, increasing production from 108
BOPD to 350 BOPD, 420 BOPD to 820 BOPD and 610 BOPD to 1,310 BOPD
respectively in a stable manner, using a hydraulic pump lifting
system. Amerisur has identified candidates for similar treatments,
including Platanillo-3, Platanillo, 4 Platanillo-5, Platanillo-9,
Platanillo-14 and Platanillo-12. This treatment programme is
currently ongoing.
Platanillo north
In March 2017, the Company successfully mobilised Serinco rig
D10 to Pad 2N, currently the northernmost Pad on the Platanillo
block, approximately 3.4 kilometres north of Pad 3N, to drill well
Platanillo-22. The well was successfully drilled to a total depth
of 8,720 feet, under time and budget.
Platanillo-22 initially tested at 613 BOPD, ahead of pre-drill
estimates in the range of 300 to 400 BOPD, with 0.22% water cut
from a 14 feet perforated interval in the Lower U Sand using a
hydraulic pump lifting system. Following an optimisation of the
hydraulic pump design the well is now producing approximately 1,000
barrels of 31.5 degree API oil per day under stable conditions with
0.1 % water cut and is being trucked to the southern pads for
export via the OBA system. The tested oil quality was slightly
lighter than the main Platanillo field.
The reservoir units in the Cretaceous Villeta formation were
encountered slightly deeper than prognosed. However, the Oil Water
Contact (OWC) within the reservoirs was encountered significantly
deeper than expected, being 37 feet deeper in the Upper U and 23
feet deeper in the Lower U formations. No OWC was observed in the N
sand. The T sand did not indicate pay in this well. The greater
effective oil column in the U sands is likely to increase certified
reserves in the field. The observed results suggest that the oil
accumulation at Pad 2N has a separate closure compared to Pad 3N
and the greater Platanillo field. This indicates the presence of a
permeability barrier between those pads, which may be formed either
by a sub-seismic fault or a stratigraphic feature which allowed the
Pad 2N structure to be filled to a greater extent than the
remainder of the field. Since receiving this data the Company has
been closely evaluating the 3D seismic cube; reprocessing has
identified certain subtle features within the basement and
overlying formations which may be the cause of that barrier.
Provisional re-mapping has been performed and the Company
estimates, using volumetric calculations, the potential for up to
7.82 MMBO of recoverable reserves within the Pad 2N structure, as
opposed to the previous estimate of approximately 1.4MMBO. The
eventual reserve uplift will be defined by further drilling to
establish the exact position of the barrier and hence the extent of
the enhanced closure at Pad 2N. Amerisur is reviewing options for
the well, which may be drilled from either Pad 2N or Pad 3N, post
Platanillo 23.
Following the success at Platanillo-22 the drilling rig Serinco
D-10 moved over to the adjacent drilling cellar on Pad 2N, to drill
Platanillo-21, a short deviation directional well aimed at the
crest of the mapped structure to a total depth of 8,447 feet
measured depth, on time and budget and tested at 430 BOPD, ahead of
pre-drill estimates in the range of 300 to 400 BOPD. The well has
now been perforated and will be tested and placed on commercial
production over the coming week.
The drilling of Platanillo-25, the third well on Pad 2N
commenced on 21 September and is a medium step out well, whose
reservoir target is approximately 600m south of Pad 2N. Planning
continues for Platanillo-23, a potential well stepping out beyond
Platanillo-25. This well will be confirmed following results from
Platanillo-25.
Significant further upside has been identified in the Platanillo
field, in addition to the separate northern structure, with the N
Sand Anomaly in the north/central part of the field targeting 18.8
MMBOE.
The studies required to modify the Platanillo environmental
licence to include further locations located over the N sand
anomalies have been completed. The modification application was
submitted on 18(th) August to ANLA. The Company expects approval of
this application in December. After civil works, it is expected to
spud the well in Q1 2018.
Putumayo-9 - OBA Cluster
Putumayo-9 (Put-9) is located immediately to the north of
Putumayo-12 (Put-12) and to the east of Platanillo. It carries an X
factor of 22%. Amerisur increased its interest from 40% to 100% in
March 2017 and is now Operator. On the basis of existing seismic
data there are several interesting structures which are shared
between Put-12 and Put-9. There are also independent structures
which lie within Put-9, including the Airu-1 discovery, drilled in
1998.
There are some exploratory opportunities shared between blocks
Put-12 and Put-9, since these have similar geological
configurations and structural trends with a North-South
preferential orientation that have continuity in both areas. In
addition, stratigraphic plays related to the pinch-out of the U and
T Sands have been interpreted, whose mapped areas are shared by
both blocks.
Oil production from Put-9 can be exported using the Platanillo
infrastructure. The block has unrisked prospective resources of
53.5MMBO and a three well drilling programme is expected to
commence in Q3 2018.
Putumayo-12 - OBA Cluster
Amerisur has a 60% working interest and is Operator, and
Pluspetrol has a 40% working interest. Put-12 is a 54,434-hectare
block which is adjacent to Platanillo to the East and shares its
geology. Acquired in November 2012, the bid included a commitment
to a seismic acquisition programme and the drilling of one
exploration well during the first three-year exploration phase. The
block carries a 29% X factor. The Company intends to drill three
wells on this block commencing in Q4 2018, initially focusing on
Prospects 1 (Coembu), 6 (Maracaya) and 3, targeting unrisked mean
prospective resources of 106 MMBO, 47 MMBO and 82 MMBO
respectively. The exact order remains under review and depends upon
the outcome of Lead 1, with the potential for the Company's focus
to move towards drilling multiple wells on this prospect, given its
proximity to the OBA.
A "Consulta Previa" (socialisation of projects with indigenous
communities required by law) was completed with three indigenous
communities (Buenavista, Santa Cruz de Piñuña Blanco and Bajo Santa
Helena) which allow further seismic operations to be performed in
the block.
However, the social issues resulting from the peace process with
FARC have meant that the Company has not yet initiated seismic
operations. Upon review of existing seismic data, reprocessed and
interpreted during the period, the Company and partner have decided
to drill Coembu prior to acquiring further seismic data. As such
social consultations for the studies required to apply for an
environmental licence are now underway.
Coati - OBA Cluster
Amerisur acquired Coati in January 2016. The Temblon area of the
Coati block is 100% owned and operated by Amerisur, with Canacol
holding a 40% working interest in the exploration area of the Coati
contract. The block is located in the South West of the Putumayo
basin, adjacent to the Loro and Hormiga oil fields and is in Phase
3 of its exploration period with no X Factor and low work
commitments.
There is an existing discovery on the block of which Amerisur
owns 100% called Temblon, which management estimate contains 16
MMBO of contingent resources and 4 MMBO of prospective
resources.
At the time of acquisition, five indigenous communities were
certified within the block, with whom a "Consulta Previa" was
underway. However, in April 2017 a further two communities were
certified within the block. As such the previous "Consulta Previa"
had to be terminated since it did not include all certified groups.
The Company has now begun the process of defining the new "Consulta
Previa" process in order to allow exploration works in the northern
part of the block.
The Temblon area already enjoys the permissions required to
perform a Long Term Test (LTT) of the Coati-1 well. The Company is
reviewing technical options with respect to that activity.
Putumayo-8 - OBA Cluster
Putumayo-8 lies adjacent to the west of the Platanillo field and
is in Phase 1 of its exploration period with a 2% X Factor and low
work commitments of one exploration well and 207 km(2) of 3D
seismic. 95 km(2) of 3D seismic data has been acquired to date.
Amerisur has a 50% (non-operated) working interest and Vetra holds
the remaining 50% and is Operator.
Amerisur and the Operator have identified a number of attractive
prospects within the block, two of which are covered by 3D seismic
data. The Operator is currently preparing the environmental impact
assessment for environmental licensing.
The block has unrisked prospective resources of 12.3 MMBO net to
Amerisur.
Putumayo-30
Putumayo-30 covers approximately 38,514 hectares and lies within
the Putumayo basin, approximately 55 kilometres to the north of
both the Company's 100% owned Platanillo field and 60% owned
Putumayo-12 Contract.
In December 2016 Amerisur acquired the outstanding working
interest in the block from Talisman Colombia Oil & Gas Ltd,
thus holding 100% and Operatorship.
The block has Cretaceous exploration potential in line with the
adjoining Andaquies block (Amerisur 100%) and additionally has a
recognized Tertiary play concept.
The"Consulta Previa" process is in progress and is expected to
be completed in 2018. The block has unrisked prospective resources
of 449MMBO.
CPO-5
CPO-5 is an Exploration and Production Contract, covering
198,000 hectares and located to the south of block Llanos 34 and to
the east of the Corcel fields. The block includes the evaluation
area related to the Loto-1 oil discovery. Amerisur has a 30%
(non-operated) working interest in the contract, ONGC Videsh Ltd
holds a 70% working interest and is the Operator.
In May 2017, Amerisur and its partner successfully drilled the
Mariposa-1 well to a total depth of 11,556 feet (MD). A 7"
production liner was successfully run and cemented in the well and
an interval of 12 feet of the 120 feet of net pay logged in the L3
sandstone was perforated in order to perform a short-term test with
a drill-stem-test temporary string. The well was tested in natural
flow over a variety of choke sizes, together with appropriate
closed-in pressure build up periods to ascertain reservoir
parameters. The natural controlled flow rate recorded was
approximately 4,601 barrels of oil per day of 40.8 degree API oil
with a water cut of 0.35% and 348psi flowing wellhead pressure over
a 40/64" choke and indicated strong further production
potential.
The well is expected to be placed on LTT shortly.
The LTT will be followed by the drilling of Indico-1, a well
targeting an updip section of the Mariposa play on the Lower Sands.
This well is expected to spud in Q1 2018. The block has unrisked
prospective resources of 142.3MMBO and 13.4MMBO contingent
resources net to Amerisur.
Andaquies Block
Andaquies is 100% owned and operated by Amerisur and is located
in the north east of the Putumayo basin. The block sits to the
north east of a proven structural play within the Putumayo basin
and has multiple proven reservoir targets, six mapped leads
targeting both proven and speculative plays and unrisked resources
of 82MMBO. Andaquies is contiguous with Putumayo-30, with no X
Factor and low work commitments of one exploration well by May
2017. The Company has requested an extension of this period from
ANH while environmental licensing is completed.
Terecay Block
In March 2017, Amerisur acquired a 100% working interest in
Terecay from Pacific (now Frontera Energy), which lies between
Put-12 and Put-9 and Tacacho. Regional mapping has been completed,
but more seismic data is required to determine if the structural
trends from Put-13 and Put-14 blocks extend northward to Terecay.
The regional seismic processing project commissioned by the Company
is expected to assist in prospect definition.
Tacacho Block
In March 2017, Amerisur acquired the remaining 50.5% of Tacacho
from Pacific and holds a 100% working interest and Operatorship.
Tacacho is an Exploration and Production contract, covering 238,000
hectares in the eastern Caguan-Putumayo basin. It is a heavy oil
exploration play, supported by regional studies which indicate a
continuation of the heavy oil trend extending from the eastern
Llanos basin through to the ITT field complex in the eastern
Oriente basin of Ecuador. Additionally, the well Solita-1, drilled
nearby by Texaco in 1948 indicated the presence of hydrocarbons in
the Pepino formation. Large structures have been defined on
existing 2D seismic, with closures at both the base and top of the
Pepino formation. The contract is currently in Phase 1, where the
exploration commitment is 480 kilometres of 2D seismic. The phase
is currently suspended while social consultations and security
planning is performed. The block has unrisked resources of
179MMBO.
Mecaya Block
Amerisur acquired a 58% working interest in Mecaya in March 2017
from Pacific. The block is in a faulted zone, with potential for
traps similar to those in the Platanillo field and has proven oil,
with the Mecaya-1 well drilled in 1989 by ECP flowing at 782
BOPD.
It is planned to present an application for environmental
licensing and then perform an LTT of the well Mecaya-1.
Paraguay
As announced at the Company's full year results in April 2017, a
technical programme involving the detailed analysis of well data
and samples and the reprocessing and reinterpretation of the
seismic data set from its exploration well, Jaguarete-1 is nearing
completion. Until the results of this have been studied, very
little capital will be spent on the Paraguay acreage. Activities in
the first half on 2017 were minimal.
Reserves
In March 2017, the Company took receipt of an independent
reserves report for the Platanillo field as at 31 December 2016.
Undertaken by Petrotech Engineering Ltd, using the standards set by
the Oil and Gas Reserves Committee of the Society of Petroleum
Engineers, the report certified that 1P (Proven) gross field
reserves were 15.1 MMBO (2015: 15.2 MMBO) after production of 1.13
MMBO during 2016 and 2P (Proven and Probable) gross field reserves
were 24.5 MMBO (2015: 23.7 MMBO).
Production during 2016 was 1.13 MMBO; hence 2016 1P reserves,
after adjusting for production, represent a small increase from
year-end 2015.
The Company believes that the additional drilling activity on
Platanillo this year and four wells from the northern pad 2N, which
seek to extend the field limits, should result in an increase in
both 1P and 2P reserves.
Financial Review
The first half of 2017 saw a significant increase in EBITDA over
the prior year, as a result of stronger production, lower operating
costs and higher average oil market prices.
Results summary
$m (unless otherwise stated) H1 2017 H1 2016 FY 2016
-------------------------------- -------- -------- --------
Average daily production (/bl) 4,475 2,641 3,072
Revenue 38.2 24.4 47.2
Average sales price (/bl) 47.2 35.0 38.4
Adjusted EBITDA (1) 7.6 0.7 0.4
Operating netback (/bl ) (1) 29.6 12.4 11.2
Loss before tax (1.6) (6.8) (29.3)
Net cash generated by/ (used
in) operations 8.5 (1.8) (4.3)
Capital expenditure (exc.
acquisitions) 16.1 18.4 31.0
Cash and cash equivalents
(inc. restricted cash) 29.0 56.1 42.3
Debt - - -
Net assets 206.8 227.2 207.7
(1)Non-GAAP terms - see glossary in Note 9.
Production
Average daily production of 4,475 BOPD in H1 2017 represents a
69% increase on the same period in 2016 and 46% increase over FY
2016. Peak daily production in the six-month period was 5,280
barrels.
Revenue and oil price movements
Average realised sales prices for the half year period were
$47.2 per barrel, compared to $35.0 in H1 2016 and $38.4 for FY
2016.
Operating Costs
Cost of sales comprise cost of operations, transport costs,
inventory movement, high prices tariffs, royalties and
depreciation. Cost of sales was $31.8 million for H1 2017 compared
to $24.5 million for H1 2016, principally reflecting the increase
in production.
Average transport costs have decreased from $11.4 per barrel in
FY 2017 to $4.8 in H1 2017, principally due to the increased
throughput of oil in the OBA pipeline.
Operating Netback
Opex per barrel H1 2017 averaged $12.8 per barrel in H1 2017, a
reduction of $3 per barrel when compared to FY 2016.
Operating netback improved from $11.2 per barrel in FY 2016 to
$29.6 per barrel in H1 2017.
Taxation
The group has a current tax charge for the period of $0.5
million (2016 H1: $0.5 million).
Cashflow
At the period end, the Group had a cash position (inclusive of
restricted cash deposits) of $29 million and continues to have no
debt.
The first half of 2017 saw a significant improvement in
operating cashflows as a result of increasing production, higher
oil prices and lower production costs, which alongside existing
cash resources have funded the capital expenditure programme in the
year to date.
The commitments and planned discretionary programmes for the
remainder of 2017 and 2018 are expected to be fully funded from
operations and the Company remains focused on efficient cost
management.
Post period end, the Company cancelled its existing undrawn
reserves based lending facility.
Dividend
The Directors will not be recommending payment of a
dividend.
CONSOLIDATED INCOME STATEMENT
6 months 6 months 12 months
to to to 31
30 June 30 June December
2017 2016 2016
$'000 Note Unaudited Unaudited Audited
Revenue 3 38,155 24,410 47,174
Cost of sales (31,768) (24,544) (47,687)
------------------------------------- ----- ---------- ---------- ----------
Gross profit/(loss) 6,387 (134) (513)
Total administrative expenses (7,233) (7,038) (11,895)
Impairment of assets - - (15,263)
------------------------------------- ----- ---------- ---------- ----------
Operating loss (846) (7,172) (27,671)
Net foreign exchange gains/(losses) 42 1,268 (1)
Finance charges (922) (947) (1,965)
Finance income 165 96 289
------------------------------------- ----- ---------- ---------- ----------
Loss before taxation (1,561) (6,755) (29,348)
Capital tax (269) (696) (646)
------------------------------------- ----- ---------- ---------- ----------
Loss after capital taxes (1,830) (7,451) (29,994)
Income taxation 4 (461) (510) 1,541
------------------------------------- ----- ---------- ---------- ----------
Loss attributable to equity
holders of the parent (2,291) (7,961) (28,453)
------------------------------------- ----- ---------- ---------- ----------
Loss per share - total
and continuing
Basic (cents per share) 5 (0.19) (0.69) (2.40)
Diluted (cents per share) 5 (0.19) (0.69) (2.40)
------------------------------------- ----- ---------- ---------- ----------
All amounts relate to continuing
operations
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months 6 months 12 months
to to to 31
30 June 30 June December
2017 2016 2016
$'000 Unaudited Unaudited Audited
Loss attributable to equity
holders of the parent (2,291) (7,961) (28,453)
Other comprehensive loss:
Other comprehensive income/(loss)
to be classified to profit
or loss in subsequent periods:
Foreign exchange differences
on retranslation of foreign
operations 821 (679) (285)
------------------------------------- ----- ---------- ---------- ----------
Total comprehensive loss
attributable to equity
holders of the parent (1,470) (8,640) (28,738)
------------------------------------- ----- ---------- ---------- ----------
The above consolidated income statement and statement on
comprehensive income should be read in conjunction with the
accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 June 30 June 31 December
2017 2016 2016
$'000 Note Unaudited Unaudited Audited
------------------------------- ----- ---------- ---------- ------------
ASSETS
Non-current assets
Goodwill - 514 -
Intangible exploration
and evaluation assets 6 45,899 46,372 32,704
Property, plant and equipment 7 147,844 145,196 147,866
------------------------------- ----- ---------- ---------- ------------
193,743 192,082 180,570
Current assets
Inventory (crude oil) 5,091 993 5,085
Cash and cash equivalents 24,405 56,138 40,051
Restricted cash deposits 4,615 - 2,233
Trade and other receivables 21,427 16,872 15,078
------------------------------- ----- ---------- ---------- ------------
55,538 74,003 62,447
------------------------------- ----- ---------- ---------- ------------
Total assets 249,281 266,085 243,017
------------------------------- ----- ---------- ---------- ------------
LIABILITIES
Current liabilities
Trade and other payables (30,793) (25,588) (23,793)
Current tax liabilities (847) - (842)
------------------------------- ----- ---------- ---------- ------------
(31,640) (25,588) (24,635)
Non-current liabilities
Remediation provision (2,758) (2,742) (2,633)
Deferred tax liability (8,079) (10,515) (8,079)
------------------------------- ----- ---------- ---------- ------------
(10,837) (13,257) (10,712)
------------------------------- ----- ---------- ---------- ------------
Total liabilities (42,477) (38,845) (35,347)
------------------------------- ----- ---------- ---------- ------------
Net assets 206,804 227,240 207,670
------------------------------- ----- ---------- ---------- ------------
EQUITY
Issued capital 1,761 1,755 1,761
Share premium* 144,941 144,941 144,941
Merger reserve* 13,532 13,532 13,532
Other reserve 11,716 12,003 11,112
Foreign exchange reserve 10,365 9,150 9,544
Retained earnings 24,489 45,859 26,780
------------------------------- ----- ---------- ---------- ------------
Total equity 206,804 227,240 207,670
------------------------------- ----- ---------- ---------- ------------
The above consolidated statement of financial position should be
read in conjunction with the accompanying notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Foreign
Share Share Merger Other exchange Retained Total
$'000 capital premium* reserve* reserves reserve earnings equity
At 1 January
2016 (Restated) 1,560 109,070 4,485 10,979 9,829 53,723 189,646
Loss for
the period - - - - - (7,961) (7,961)
Foreign exchange
differences - - - - (679) - (679)
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
Total comprehensive
loss - - - - (679) (7,961) (8,640)
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
Share options
exercised 1 - - (97) - 97 1
Equity settled
share options - - - 1,121 - - 1,121
Issue of
shares 194 35,871 9,047 - - - 45,112
Transactions
with owners 195 35,871 9,047 1,024 - 97 46,234
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
At 30 June
2016* 1,755 144,941 13,532 12,003 9,150 45,859 227,240
Loss for
the period - - - - - (20,492) (20,492)
Foreign exchange
differences - - - - 394 - 394
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
Total comprehensive
income/(loss) - - - - 394 (20,492) (20,098)
Share options
exercised 5 - - (1,413) - 1,413 5
Equity settled
share options - - - 522 - - 522
Issue of
shares 1 - - - - - 1
Transactions
with owners 6 - - (891) - 1,413 528
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
At 1 January
2017 1,761 144,941 13,532 11,112 9,544 26,780 207,670
Loss for
the period - - - - - (2,291) (2,291)
Foreign exchange
differences - - - - 821 - 821
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
Total comprehensive
loss/(income) - - - - 821 (2,291) (1,470)
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
Equity settled
share options - - - 604 - - 604
Transactions
with owners - - - 604 - - 604
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
At 30 June
2017 (unaudited) 1,761 144,941 13,532 11,716 10,365 24,489 206,804
--------------------- ---------- ----------- ----------- ----------- ---------- ----------- ---------
*Prior period balances have been reclassified (see note 2).
CONSOLIDATED CASHFLOW STATEMENT
6 months 6 months 12 months
to to to 31
30 June 30 June December
2017 2016 2016
$'000 Note Unaudited Unaudited Audited
---------------------------------- ----- ---------- ---------- ----------
CASH FLOWS FROM OPERATING
ACTIVITIES
Loss for the period (2,291) (7,961) (28,453)
Adjustments for:
Finance income (165) (96) (289)
Finance charges 922 947 1,965
Taxation 730 1,206 (895)
Depreciation 7,837 4,353 11,147
Impairment charges - - 15,263
Share options charge 604 1,121 1,643
(Increase)/decrease in inventory (5) 5,965 1,873
Increase in trade and other
receivables (6,939) (3,301) (2,197)
Increase/(decrease) in trade
and other payables 7,792 (3,993) (4,309)
---------------------------------- ----- ---------- ---------- ----------
Net cash generated by/(used
in) operations 8,485 (1,759) (4,252)
Tax (paid)/receipt (724) (1,206) 907
---------------------------------- ----- ---------- ---------- ----------
Net cash generated by/(used
in) operating activities 7,761 (2,965) (3,345)
---------------------------------- ----- ---------- ---------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest received 165 96 289
Expenditure on property,
plant and equipment 7 (12,455) (8,112) (18,568)
Acquisition of exploration
and evaluation assets 6 (4,850) - -
Expenditure on exploration
and evaluation assets* 6 (3,547) (10,280) (12,478)
---------------------------------- ----- ---------- ---------- ----------
Net cash used in investing
activities (20,687) (18,296) (30,757)
---------------------------------- ----- ---------- ---------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from exercise of
share options - 1 6
Net proceeds from issue
of equity shares on share
placing* - 36,022 36,022
Interest paid (338) (947) (1,965)
---------------------------------- ----- ---------- ---------- ----------
Net cash (used in)/generated
by financing activities (338) 35,076 34,063
---------------------------------- ----- ---------- ---------- ----------
Net (decrease)/increase
in cash and cash equivalents (13,264) 13,815 (39)
Cash and cash equivalents
at the start of the period 42,284 42,323 42,323
---------------------------------- ----- ---------- ---------- ----------
Cash and cash equivalents
at the end of the period 29,020 56,138 42,284
---------------------------------- ----- ---------- ---------- ----------
*June 2016 balances have
been reclassified (see note
2).
The above consolidated cashflow statement should be read in
conjunction with the accompanying notes
Cash and cash equivalents at 30 June 2017 above include
restricted cash of $4.6m.
1. The Company
Amerisur Resources Plc ("the Company") is principally involved
in the exploration for and production of oil and gas in Colombia,
South America.
The Company is a public limited company incorporated and
domiciled in England and Wales. The address of its registered
office is Amerisur Resources Plc, Lakeside, St. Mellons, Cardiff,
CF3 0FB, United Kingdom.
The Company has its listing on the AIM Market ("AIM") of the
London Stock Exchange.
2. Basis of preparation
These unaudited consolidated interim financial statements are
for the six months ended 30 June 2017. They do not include all the
information required for full annual financial statements and
should be read in conjunction with the consolidated financial
statements of the Group for the year ended 31 December 2016, which
were prepared under International Financial Reporting Standards
("IFRS") as adopted by the European Union ("EU"). A number of new
standards, amendments to existing standards and interpretations
were effective from 1 January 2017. The adoption of these
amendments did not have a material impact on the group's condensed
financial statements for the six months ended 30 June 2017.
The consolidated interim financial statements have been prepared
under the historical cost convention except for certain fair value
adjustments required by certain standards. The Group's presentation
currency is the US Dollar and amounts are rounded to the nearest
thousand dollars ($'000) except as otherwise indicated.
These consolidated interim financial statements have been
prepared in accordance with accounting policies consistent with
those set out in the Group's financial statements for the year
ended 31 December 2016. These statements do not constitute
statutory accounts under s434 of the Companies Act 2006 (the
"Act").
In order to be maintain consistency of accounting treatment
between periods, certain prior period balances have been
reclassified as follows:
i. A reclassification from share premium to a new merger reserve
in relation to the acquisition of PDSA in 2015 where the excess
over the nominal value of the fair value of the consideration where
more than 90% of the shares are acquired through the issue of new
shares should be recorded in a separate merger reserve.
ii. A reclassification between operating and investing cashflows
in relation to the PDSA assets acquired through shares rather than
cash.
The consolidated statutory accounts for the year ended 31
December 2016 have been filed with the Registrar of Companies.
Those accounts have received an unqualified audit report and did
not contain statements or matters to which the auditors drew
attention under the Act.
The Directors are satisfied that the Group has adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, these interim financial statements have been
prepared on a going concern basis as the Directors are of the
opinion that the Group has sufficient funds to meet their ongoing
working capital and committed capital expenditure requirements. In
making this assessment, the Directors considered the budgets, the
cash flow forecasts and associated risks.
3. Segmental reporting
Segment Reporting
Our management information system produces reports for the
Executive Board grouping financial performance under the following
business areas:
-- Colombia; and
-- Paraguay
The UK is primarily considered to be an administrative extension
of the Colombian and Paraguayan operations. The business segments
are responsible initially for the exploration and evaluation of oil
reserves and then the development and production of oil wells. As
permitted by IFRS 8, these business segments are deemed to have
similar economic characteristics and are similar, if not the same,
in all of the following as they:
-- are both involved in E&P, whose economics are heavily
influenced by the international O&G market;
-- are subject to a similar regulatory environment.
The business areas have been aggregated into a single reportable
operating segment, namely oil exploration and evaluation (E&E)
and development and production (D&P). Each month the Executive
Board is presented with financial information prepared in
accordance with IFRS as adopted in the EU and the accounting
policies set out in Note 2 to the financial information as such
information regarding this operating segment has already been
disclosed in the financial statements.
In the period the following three customers (H1 2016: two, FY
2016: three) contributed to the majority of revenue:
6 months % 6 months % 12 months %
to 30 to to 31
$'000 June 30 June December
2017 2016 2016
Customer A - - 16,365 67 22,709 48
Customer B 19,623 52 - - 9,493 20
Customer C 3,499 9 6,169 25 7,082 15
Customer D 15,033 39 - - - -
Others - - 1,876 8 7,890 17
38,155 100 24,410 100 47,174 100
------------ --------- ---- --------- ---- ---------- ----
Geographical information
Non-current assets Revenue
As at As at As at 6 months 6 months 12 months
30 June 30 June 31 December to to to
30 June 30 June 31 December
$'000 2017 2016 2016 2017 2016 2016
---------- --------- --------- ------------- --------- --------- -------------
Colombia 191,146 172,286 178,464 38,155 24,410 47,174
Paraguay 2,491 18,641 2,000 - - -
United
Kingdom 106 1,155 106 - - -
---------- --------- --------- ------------- --------- --------- -------------
193,743 192,082 180,570 38,155 24,410 47,174
---------- --------- --------- ------------- --------- --------- -------------
The revenue split is based on revenue by origin of supply.
4. Taxation
6 months 6 months 12 months
to 30 to 30 to 31
$'000 June June December
2017 2016 2016
Current tax:
Overseas tax - Colombia (461) (510) (895)
Deferred tax:
Origination and reversal of
temporary differences - - 2,436
----------------------------- --------- --------- ----------
Income tax (expense)/credit (461) (510) 1,541
----------------------------- --------- --------- ----------
The combined Colombian tax rate for 2017 is 40%; 34% income tax
plus 6% income surtax (2016: 40%).
5. Loss per share
6 months 6 months 12 months
to to to
30 June 30 June 31 December
$'000 2017 2016 2016
---------------------------------- -------------- -------------- --------------
Loss for the period attributable
to equity shareholders of
the parent (2,291) (7,961) (28,453)
Loss per share
Basic (cents per share) (0.19) (0.69) (2.40)
Diluted (cents per share)
(1) (0.19) (0.69) (2.40)
---------------------------------- -------------- -------------- --------------
Shares Shares Shares
Issued ordinary shares at
start of the period 1,213,205,768 1,073,038,018 1,073,038,018
Ordinary shares issued in
the period - 135,301,612 140,167,750
---------------------------------- -------------- -------------- --------------
Issued ordinary shares at
end of the period 1,213,205,768 1,208,339,630 1,213,205,768
---------------------------------- -------------- -------------- --------------
Weighted average number
of shares in issue for the
period for basic and diluted
earnings per share 1,213,205,768 1,162,102,421 1,185,762,842
---------------------------------- -------------- -------------- --------------
(1)the effect of outstanding
share options is anti-dilutive
6. Intangible exploration and evaluation (E&E) assets
Total
$'000
----------------------------------- -------
COST
At 1 January 2016 53,487
Additions 12,370
Acquisition of interests 7,000
At 30 June 2016 72,857
Additions 108
------------------------------- --- -------
At 31 December 2016 72,965
Additions 3,547
Acquisition of interests(1) 4,850
Reclassification from
PPE 4,798
------------------------------- --- -------
At 30 June 2017 86,160
------------------------------- --- -------
AMORTISATION AND IMPAIRMENT
At 1 January and 30
June 2016 26,485
Impairment charge(2) 13,776
------------------------------- --- -------
At 31 December 2016 40,261
------------------------------- --- -------
At 30 June 2017 40,261
------------------------------- --- -------
NET BOOK VALUE
At 30 June 2017 45,899
------------------------------ ---- -------
At 1 January 2017 32,704
------------------------------ ---- -------
At 30 June 2016 46,372
------------------------------ ---- -------
(1) on 16 March 2017 the Group announced the following working
interest asset acquisitions from Meta Petroleum Corporation and
Pacific Status Energy Colombia Corporation (both ultimately owned
by Pacific Exploration and Production, a Canadian Listed
company).
-- 60% of Put-9;
-- 58% of Mecaya;
-- 100% of Terecay; and
-- 50.5% of Tacacho.
(2) in 2016, the Group recorded an impairment charge of $13.8m
in relation to its E&E expenditure on the San Pedro block in
Paraguay.
7. Property, plant and equipment
Oil Office
D&P Land Plant and computer Motor
$'000 assets and buildings and machinery equipment vehicles Total
------------------ -------- ---------------- ---------------- -------------- ----------- --------
COST
At 1 January
2016 176,594 1,994 21,247 871 692 201,398
Additions 1,235 7 6,854 16 - 8,112
------------------ -------- ---------------- ---------------- -------------- ----------- --------
At 30 June
2016 177,829 2,001 28,101 887 692 209,510
Additions 650 49 9,636 58 63 10,456
Disposals - (19) - - (189) (208)
Transfers
(out)/in - (732) 750 (18) - -
------------------ -------- ---------------- ---------------- -------------- ----------- --------
At 31 December
2016 178,479 1,299 38,487 927 566 219,758
Additions 10,529 351 1,612 88 - 12,580
Reclassification
to E&E (4,798) - - - - (4,798)
Foreign exchange - - 27 5 6 38
At 30 June
2017 184,210 1,650 40,126 1,020 572 227,578
------------------ -------- ---------------- ---------------- -------------- ----------- --------
DEPRECIATION
At 1 January
2016 57,376 339 1,517 454 275 59,961
Charge for
the period 3,544 25 430 252 102 4,353
------------------ -------- ------ ------- ------ ------ --------
At 30 June
2016 60,920 364 1,947 706 377 64,314
Charge for
the period 5,752 112 1,057 (152) 25 6,794
Impairment - 27 639 133 174 973
Disposals - - - - (189) (189)
Transfers
(out)/in - (72) 173 (146) 45 -
------------------ -------- ------ ------- ------ ------ --------
At 31 December
2016 66,672 431 3,816 541 432 71,892
Charge for
the period 6,256 49 1,436 48 48 7,837
Foreign exchange - - 5 - - 5
------------------ -------- ------ ------- ------ ------ --------
At 30 June
2017 72,928 480 5,257 589 480 79,734
------------------ -------- ------ ------- ------ ------ --------
NET BOOK VALUE
At 30 June
2017 111,282 1,170 34,869 431 92 147,844
------------------ -------- ------ ------- ------ ------ --------
At 1 January
2017 111,807 868 34,671 386 134 147,866
------------------ -------- ------ ------- ------ ------ --------
At 30 June
2016 116,909 1,637 26,154 181 315 145,196
------------------ -------- ------ ------- ------ ------ --------
Oil development and production assets relate to the 100% owned
Platanillo field.
8. APPRoval of the interim accounts
The unaudited interim condensed consolidated financial
statements were approved by the Board of Directors on 22 September
2017.
Copies of the Interim report are available by download from the
Company's website at: www.amerisurresources.com
9. GLOSSARY
Amerisur Amerisur Resources Plc and its subsidiaries
ANH Agencia Nacional de Hidrocarburos
ANLA Autoridad Nacional de Licencias Ambientales
API oil American Petroleum Institute
ARCH Agencia de Regulación y Control Hidrocarburífero
BO Barrels of Oil
BOPD Barrels of Oil Per Day
Canacol Canacol Energy Colombia SA
Company Amerisur Resources Plc
Consulta The right of indigenous and ethnic groups
Previa to be consulted on matters affecting their
culture and heritage
D&P Development & Production
E&E Exploration and Evaluation
EBITDA Net income/(loss) before interest, taxes,
depreciation and adjusted for other non-cash
items
D&P Development & Production
Group Amerisur Resources Plc and its subsidiaries
Ha Hectares
LTT Long Term Test
mb/d Million Barrels per Day
MD Measured Depth
MMBO Million Barrels of Oil
OBA pipeline Oleoducto Binacional Amerisur pipeline
Operating Operating profit/(loss) pre royalties,
Netback high prices tariff and depreciation
Opex/bl Operating expense per barrel (excludes
transport costs, royalties, tariffs and
depreciation)
OWC Oil Water Contact
PDEL Petro Dorado Energy Ltd
PDSA Petrodorado South America SA
Platino Platino Energy (Barbados) Ltd
"Prospective Those quantities of petroleum estimated,
Resources" as of a given date, to be potentially
recoverable from undiscovered accumulations
by application of future development projects.
Prospective resources have both an associated
chance of discovery and a chance of development
"Proven Those quantities of petroleum, which,
Reserves" by analysis of geoscience and engineering
or "1P" data, can be estimated with reasonable
certainty to be commercially recoverable,
from a given date forward, from known
reservoirs and under defined economic
conditions, operating methods, and government
regulations. If deterministic methods
are used, the term reasonable certainty
is intended to express a high degree of
confidence that the quantities will be
recovered. If probabilistic methods are
used, there should be at least a 90% probability
that the quantities actually recovered
will equal or exceed the estimate
"Proven Those additional Reserves which analysis
+ Probable of geoscience and engineering data indicate
Reserves" are less likely to be recovered than Proved
or "2P" Reserves but more certain to be recovered
than Possible Reserves. It is equally
likely that actual remaining quantities
recovered will be greater than or less
than the sum of the estimated Proved plus
Probable Reserves (2P). In this context,
when probabilistic methods are used, there
should be at least a 50% probability that
the actual quantities recovered will equal
or exceed the 2P estimate
TD Total Depth
Vetra Vetra Energia S/L.
X factor Additional royalty payable to the ANH
Forward Looking Statements
Forward looking statements and dates referenced in this
announcement, in relation to Amerisur's exploration, development
and production assets are estimates and subject to change. Oil and
gas operations, particularly those relating to development stage
assets, are subject to varying inputs that may impact timing,
including inter alia permitting; environmental regulation; changes
to regulators and regulation; third party manufacturers and service
providers; political and social developments; the weather and asset
partner and operator actions. The Company's estimates of timing for
forward looking operations are based on the best information it has
to hand at the time, however these timings may change with little
or no notice to the Company. The Company will update the market as
and when it becomes aware of a material change to any of the
operations or timings referenced in this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR SEFESLFWSEFU
(END) Dow Jones Newswires
September 25, 2017 02:01 ET (06:01 GMT)
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