Amerisur Resources PLC Loto-2 Update (8137E)
November 06 2015 - 2:01AM
UK Regulatory
TIDMAMER
RNS Number : 8137E
Amerisur Resources PLC
06 November 2015
06 November 2015
Amerisur Resources Plc
Loto-2 Update
Amerisur Resources Plc ("Amerisur" or the "Company"), the oil
and gas producer and explorer focused on South America, provides an
update on well Loto-2 in the CPO-5 contract area, Colombia.
Well Loto-2 has been drilled to a total depth of 10,320 ft MD,
and a liner run and cemented. Two zones within the Mirador
formation, L1 and L3 were tested, where electric log analysis
indicated the existence of 54ft net pay. L1 tested water and oil
with water cut (BS&W) of 96% and 16(o) API oil and L3 tested
water and oil with BS&W of 97% and 10(o) API oil. Loto-2 has
been temporarily suspended pending further analysis of these
results.
The well was drilled for a total cost of $3.98MM, $1.19MM net to
Amerisur/PDSA and testing costs are currently estimated at $0.69MM
net to Amerisur. The operations were completed on time and under
budget, at 69% of the planned expenditure, due to excellent
operational planning and execution. The Tuscany 109 will now be
demobilised while the partners review the well testing data
together with the 3D seismic model. A decision on further wells on
the Loto structure will be taken in the next few weeks.
The Company and OVL are currently reviewing a number of exciting
drilling opportunities within CPO-5 and expect to formalise the
future drilling plans before year end.
As a reminder, Amerisur acquired its 30% interest in the CPO-5
block as part of the $6MM acquisition of Petro Dorado South America
SA (PDSA), a subsidiary of Petro Dorado Energy Ltd (PDEL). In that
contract ONGC Videsh is the Operator and holds a working interest
of 70%. As part of the same transaction Amerisur also acquired a
49.5% (non-operated) working interest in the Tacacho contract,
located in the Caguan-Putumayo basin (Pacific Stratus 50.5% and
Operator) and tax losses of approximately US$57MM, representing a
potential tax benefit to the Company of up to approximately
US$20MM.
John Wardle, CEO of Amerisur commented:
"Initial analysis of the Loto-2 well indicates there may be an
issue with the mobility of the oil in place, coupled with the usual
strong Llanos aquifer, and together with our partner ONGC Videsh we
intend to further study the detailed test results with the
objective of defining whether this accumulation can produce
economically through the use of advanced techniques. As part of
these studies, the partners are considering a further test of well
Loto-1. The presence of heavy oil in the Llanos basin is wide
spread, given the diversity of sourcing and migration mechanisms,
which are the basis of the basin's prodigious potential. The block
is on trend with a number of important Llanos light and medium oil
discoveries and we remain convinced of the high potential within
the structures already identified and the wider exploration
opportunities held within the contract. It is very encouraging that
we have been able to develop the drilling operations in such an
efficient and cost effective way. This benefit will enable
comprehensive exploration within CPO-5 at very reasonable
cost."
ENDS
Competent person: Technical information in this announcement has
been reviewed by John Wardle Ph.D., the Company's Chief Executive.
John Wardle has 29 years' experience in the industry, having worked
for BP, Britoil, Emerald Energy and Pebercan, and is a trained
drilling engineer.
ENQUIRIES:
Billy Clegg/Georgia Tel: +44(0)203 757 4980
Mann
Camarco
Jeremy Low/Daniel Tel: +44 (0)207 653 4000
Conti
RBC Capital Markets
Chris Sim Tel: +44 (0)207 597 4000
Investec
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 of circa 4,350 BOPD. Amerisur's strategy is
to acquire, explore and develop large acreage positions in major
under explored basins located in South America. The Company's
distinctive approach has been to own 100% of its assets at early
stages in order to have full control over the fields' development.
That requirement is now being relaxed as a sound production
baseline has been established and in response to the widening
opportunity set to which the Company has access.
In Colombia, the Company is operator and has a 100% working
interest in the Platanillo block which includes the Platanillo
field which is currently producing circa 4,350 BOPD. The 11,341
hectare block is located in the Putumayo Basin. In addition, the
Company has a 60% working interest and operatorship in block
Put-12, a 55,000 hectare block which is adjacent to Platanillo and
shares its geology and a 50% working interest in Put-30 a 38,514
hectare block, approximately 55km to the north of the Company's
100% owned Platanillo field. The company has recently acquired a
30% working interest in the CPO-5 contract, located in the Llanos
basin and a 49.5% working interest in the Tacacho contract, located
in the Caguan-Putumayo basin.
In Paraguay, Amerisur is the largest acreage holder in the
country, with 5.2 million hectares covering five 100% owned oil and
gas permits in the Paraguayan part of the Chaco and Parana
Basins.
John Wardle is CEO of Amerisur, having worked in Colombia since
1994, first for BP Exploration and subsequently for Emerald Energy.
The Company is chaired by Giles Clarke and is listed on the AIM
Market of the London Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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