Amerisur Resources (LSE:AMER) was up 3.5pc to 12.2p on Tuesday after releasing an operational update in which it highlighted current production has been ramped up to 6,800 barrels of oil per day (bopd). The increase is largely down to the completion of the Platanillo-26 infill well which is now contributing 710 bopd. The firm is continuing to optimise the Platanillo field with a planned sidetrack well at Platanillo-22. Final year average production is estimated to be in the range of 5,000-6,000 bopd, with an average of 5,300 bopd achieved in the year to date up until the end of May.
Meanwhile, results from the Sol-1 exploration well on the CPO-5 block are expected shortly after the well was spud on 11 May. The CPO-5 block includes the Mariposa and Indico fields where the company has had great success with the Mariposa-1 and Indico-1 wells. The last drill on the block – the Calao-1X well – was a disappointment but such is the nature of oil exploration.. the next target after Sol-1 will be the drilling of the Indico-2 appraisal well.
In an interview on the ValueTheMarkets podcast back in April, Amerisur’s Nathan Piper detailed the firm’s exploration plans for 2019, in which it’s aiming to drill up to 10 wells.
In addition to its own production, Amerisur also has the facility to transfer oil produced by third parties. Its 100pc owned OBA pipeline has the capacity to transfer up to 50-70,000 bopd from the Putumayo in Colombia into Ecuador. In May, Amerisur announced it had received all the required approvals to start the transportation of third-party oil. It expects initial volumes will be around 2,000 bopd in the second half of this year.
John Wardle, CEO of Amerisur, commented: “We are pleased to secure all the approvals associated with the transformational deal with Occidental. Work has started to initiate seismic surveys and drilling on the acreage later this year. Production optimisation at Platanillo continues to deliver with production now over 4,500 BOPD from the field. On completion at Sol-1 the drilling rig on CPO-5 will return to Indico for appraisal drilling that has the potential to increase reserves and production from the field”.