Amerisur Resources PLC OBA Pipeline Operational (6470N)
October 27 2016 - 8:12AM
UK Regulatory
TIDMAMER
RNS Number : 6470N
Amerisur Resources PLC
27 October 2016
27 October 2016
Amerisur Resources Plc
OBA Pipeline Operational
Highlights
-- ARCH has issued the decree to Petroamazonas EP for the operation of the OBA system
-- Line has been filled with oil and exports at an initial rate of 1,500 BOPD have begun
-- Flow rates will be increased significantly in the weeks ahead
-- Company has guaranteed right to throughput of up to 5,000 BOPD
-- Discussions ongoing to increase this significantly
-- Cash opex costs per barrel expected to reduce from approximately $26 to under $15
-- Nine fully funded wells to be drilled in OBA cluster of assets in next 15 months
-- OBA has been constructed and commissioned on budget of $18m
Amerisur Resources Plc ("Amerisur" or the "Company"), the oil
and gas producer and explorer focused on South America, is pleased
to announce that the regulatory agency of Ecuador, ARCH has issued
the decree to Petroamazonas EP for the operation of the OBA system
in Ecuador. As a result, transport of Platanillo crude oil has
commenced at an initial rate of 1,500 BOPD via the Petroamazonas EP
owned and operated Amazonas Oil Pipeline System (RODA) to Lago
Agrio, for further onward transport to the port of Esmeraldas. The
OBA has been constructed and commissioned on budget of $18m.
Once precise measurement of tanked volumes and adjustment of the
dynamic measurement systems has been completed, flow rates will be
increased significantly in the weeks ahead. The Company has a
guaranteed throughput of up to 5,000 BOPD in the pipeline and an
increase is currently being negotiated. The technical capacity is
50,000 BPD and the line has a currently installed export pump
capacity of 18,000 BOPD.
Cash opex costs per barrel are expected to reduce from
approximately $26 to under $15. In addition to the cost savings,
Amerisur OBA and SOTE (Ecuadorian pipeline to the coast) exported
crude will receive Oriente crude pricing plus a quality
compensation factor, which has historically approximated to WTI
pricing. Current trucked production is sold as South Blend, which
is at a discount to WTI.
Giles Clarke, Chairman said:
"The OBA is the first piece of bilateral infrastructure between
the two great countries of Colombia and Ecuador. Its delivery is a
historic achievement and I would like to thank the Colombian and
Ecuadorian Governments and congratulate the executive team at
Amerisur. The OBA is a highly strategic and valuable asset for
Amerisur and its shareholders."
John Wardle, CEO said:
"I am delighted this strategic piece of infrastructure is now
operational. We have an OBA cluster of assets including Platanillo,
Put-8, Put-12 and Coati, on which we are drilling nine fully funded
wells in the next 15 months to increase low cost production,
resources and reserves, all of which can feed this pipeline. In
addition, in time we have the potential to take third party oil,
initially from partners, and then from others."
Ends
Enquiries:
Billy Clegg/Georgia Tel: +44 (0)203
Mann 757 4980
Camarco
Callum Stewart/Ashton Tel: +44 (0)20
Clanfield/ Nick Rhodes 7710 7600
Stifel Nicolaus Europe
Limited
Chris Sim/George Price Tel: +44 (0)207
597 4000
Investec
Darrell Uden/Marcus Tel: +44 (0)207
Jackson 653 4000
RBC Capital Markets
Glossary
ARCH Agencia de Regulación y Control
Hidrocarburífero
BOPD barrels of oil per day
OBA Oleoducto Binacional Amerisur pipeline
RODA Red de Oleoductos Amazonas
SOTE Sistema Oleducto Trans-Ecuatoriano
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 the Platanillo field in southern
Colombia. In 2016 Amerisur successfully built and is 100% owner of
the strategic OBA pipeline into Ecuador.
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 4,500 BOPD. The Company
has a strong position in the Putumayo basin and has a cluster of
near term activity assets around the OBA export pipeline including
the Platanillo block, Put-8, Put-12 and Coati. It has a diverse
portfolio of longer term exploration assets.
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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