Amerisur Resources (LSE:AMER) was up 6% this morning after updating the market on operations. The company has acquired the outstanding working interest in the Mecaya contract in the Caguan-Putumayo basin, making the company operator and 100% owner.
For it’s 55% working interest, Amerisur will pay Mecaya Oil and Gas Ltd $400k over three years, and a further $1.2m from 50% of production form the block. Once payment is completed a royalty payment of 4% will continue thereafter. Petex Offshore will receive $150k on completion of the deal for its 30% working interest, then a further $600,000 from 10% of production, and a royalty of 2.2%.
The Mecaya block lies adjacent to the Putumayo-9 well and covers around 74,128 acres. It contains a faulted zone with potential traps similar to those in the Platanillo field. The Mecaya-1 well was drilled in 1989 and produced 682 bopd and Amerisur plans to place the well on long-term test.
Meanwhile, at Amerisur’s Indico-1 the company reports drilling is proceeding satisfactorily with the well currently at approximately 6,500 feet, just over half way down to the estimated total drill depth of 10,780 feet.
The company also gave an update on the Chiritza station where it is currently reviewing options to utilise the 9,000 bopd capacity through the purchase of local crude oil as an interim measure until its production increases.
John Wardle, CEO of Amerisur said:
“I am very pleased to have consolidated our position in the Mecaya block under these attractive terms. The payments due to the previous partners are now, in the main, dependent upon successful production from the block, as opposed to the carry requirement we inherited by way of our original acquisition. Importantly, the increase of our working interest to 100% offers us significantly increased materiality together with wider strategic options.
“I am also pleased at the progress achieved by our partner in the CPO-5 block, where we look forward to entering the potential reservoir in this exciting prospect.”
Author: Stuart Langelaan
Disclosure: The author of this piece owns shares in the company written about above