25th Sep 2018 09:46
LONDON (Alliance News) - Shares in Amerisur Resources PLC fell Tuesday as it said a main target in Colombia has no potential for producing oil.
Amerisur shares were down 14% early Tuesday, trading at a price of 13.00 pence each.
Amerisur had been targeting the N, M2, U, and T sands anomalies with its Pintadillo-1 well on the Platanillo field in Colombia.
The N sands were its main objective, but the firm said logs showed no hydrocarbon potential, an "unexpected" result. It reported a "strong development" of limestone and calcareous sandstone 63 feet thick.
Amerisur is now assessing logs and samples to see if this is the case on the other anomalies before it goes ahead with any further drilling.
More promisingly, the company said the U sand was well developed, with 12 feet of net pay logged, while the T sand also was promising with 15 feet of net pay indicated.
Amerisur has so far produced around 300,000 barrels of oil from the T sand at two other wells, Pintadillo-8 and Pintadillo-20, and the oil found from Pintadillo-1 has not yet been included in any reserve calculations for the Platanillo field.
Amerisur has now cased and cemented Pintadillo-1, and it plans to test the T sand initially. Any oil from the sand, it continued, will be able to go through its OBA oil pipeline due to its "high quality".
Chief Executive John Wardle said: "While it is disappointing not to have encountered the N Sand as expected, we are encouraged by the development of the T and U sands in this area, in light of our success to date at Platanillo-8 and Platanillo-20.
"On success these accumulations offer reserves upside and useful bolt-on production volumes, and I look forward to updating the market on test results."
Turning to other developments, Amerisur said it expects to finish commissioning its Chiritza facility in early October, which once done will give it access to a carrying capacity of 9,000 barrels of oil a day through the RODA pipeline.
On its Coendu prospect in Colombia, on the Putumayo-12 block, Amerisur has collected all the 2D seismic data covering 43 kilometres, it added.
On the Indico-1 drill site, on the CPO-5 block, rig mobilisation is going to plan with spud targeted for the second half of October, while on the Miraparriba-1 site Amerisur said talks with Empresa Colombiana de Petroleos SA are going well over a future drilling programme.
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