21st Nov 2018 09:31
LONDON (Alliance News) - Amerisur Resources PLC on Wednesday said its Chiritza pumping station has been commissioned on time and on budget, while it has also announced an acquisition.
Now that Chiritza, in Ecuador, has been completed, Amerisur's capacity has increased to 9,000 barrels of oil a day through the OBA pipeline, which links production facilities in Colombia with neighbouring Ecuador.
Amerisur is now recovering its capital expenditure of USD3.9 million by not paying the USD1.09 per barrel tariff on the first 5,000 barrels per day sent through the system until the amount is reached.
Amerisur said it might buy locally produced oil in Colombia to reach that amount until its own production increases.
The South America-focused oil firm has taken its working interest in the Mecaya contract, in the Caguan-Putumayo basin, to 100% from 15%.
Mecaya is next to Amerisur's existing Putumayo-9 assets, and covers around 74,128 acres with a faulted zone with "potential traps similar to those in the Platanillo field". Platanillo is one of Amerisur's producing assets in Colombia.
The Mecaya-1 well was drilled in 1989, producing 682 barrels of oil a day with no water, and an early plan will be to put the well on a long-term test.
Amerisur will not have to pay a USD8.6 million capex obligation, but instead, will pay USD400,000 over three years for Mecaya Oil & Gas Ltd's 55% interest.
It will also pay Mecaya USD1.2 million when the block comes into production, and a royalty equal to 4% of production revenue after government royalties.
Amerisur will pay Petex Offshore Inc USD150,000 upfront for its 30% interest, USD600,000 when it comes online, and then 2.2% of production revenue.
Elsewhere, Amerisur said work at the Indico-1 well is on plan and budget, having reached a depth of 6,500 feet. The target depth is 10,780 feet.
Chief Executive John Wardle 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."
Amerisur shares were 5.5% higher Wednesday morning at 10.02 pence each.
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