Amerisur Resources PLC Ecuador Update (4632C)
January 22 2018 - 2:00AM
UK Regulatory
TIDMAMER
RNS Number : 4632C
Amerisur Resources PLC
22 January 2018
22 January 2018
Amerisur Resources Plc ("Amerisur" or the "Company")
Ecuador Update
Amerisur Resources Plc, the oil and gas producer and explorer
focused on South America, is pleased to provide an update on
agreements in Ecuador for the use of the OBA/RODA pipeline systems
for transport of Amerisur crude oil.
On January 19 in the Petroamazonas EP operational base at Lago
Agrio, Ecuador, Petroamazonas EP and the Company signed the "Second
Cooperation Agreement for the Use of the Oil Pipeline Network of
the Amazonian District (RODA)". This agreement defines the terms
and conditions for the construction and commissioning of the
Chiritza re-pumping station at Km 51+300 of the RODA pipeline from
Cuyabeno to the SOTE pipeline at Lago Agrio.
The construction and operation of this re-pumping station is
designed to increase the carrying capacity of the Cuyabeno-Lago
Agrio export line.
The agreement allows Amerisur, through its Ecuadorian
subsidiary, to build and commission the Chiritza station. Once
operational, the Company will gain an additional 4,000 bopd of
guaranteed minimum carrying capacity, bringing Amerisur's
guaranteed minimum carrying capacity to a total of 9,000 bopd.
The principal features of the agreement and its annexes are:
1. Amerisur estimates that the cost of the construction and
commissioning will be approximately $3.7mm.
2. The cost to Amerisur is capped at $4.0mm.
3. The investment made by Amerisur is considered a pre-payment
of the existing transport tariff over the first 5,000 bopd
transported. Hence the Company will recover the investment made at
Chiritza.
4. The second agreement has the same term as the first
agreement, i.e. 15 years from the date of the first agreement, 11
June 2015. The agreements may then be extended.
The Company is currently in the process of procuring goods and
services to fulfill its commitments under the Second Agreement.
Amerisur estimates that the construction and commissioning will be
completed in October 2018. This estimate will be updated as
procurement of long-lead items continues.
John Wardle, CEO commented:
"I am very pleased to have completed the negotiation of this
agreement, bringing important benefits to both Amerisur and
Petroamazonas EP. The increase in Amerisur minimum carrying
capacity is necessary in light of our continuing work in Platanillo
and the upcoming exploration drilling within both Platanillo and
the neighbouring blocks around the OBA facility. It is another
example of our important and growing strategic relationship with
Petroamazonas EP."
ENDS
Enquiries:
Nick Harrison, CFO Tel: +44 (0)330
Amerisur Resources 333 8246
Billy Clegg/Georgia Tel: +44 (0)203
Edmonds 757 4980
Camarco
Callum Stewart/Nicholas Tel: +44 (0)20
Rhodes/Ashton Clanfield 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
BOPD Barrels of oil per day
RODA Red de Oleoductos Amazonas
SOTE Sistema de Oleoductos 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 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
field, which is currently producing circa 6,100 BOPD. Amerisur also
holds a 30% non-operated working interest in the CPO-5 block in the
Colombian Llanos basin. The successful discovery well Mariposa-1 is
located in that block and is currently undergoing a Long Term Test,
producing approximately 3,100 bopd gross. Additionally the Company
has a strong position in the Putumayo basin and has a cluster of
near term activity assets around the OBA export line including the
Platanillo block, Put-8, Put-12 and Coati. Also, the Company holds
a 100% working interest in contract Put-9, 100% of Tacacho and 100%
of Terecay. 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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