29th Mar 2016 06:55
LONDON (Alliance News) - Amerisur Resources PLC Tuesday said production during 2015 caused its reserves to fall in the year, but said the work planned on its assets in Colombia during 2016 should lead to its reserves increasing once again this year.
The oil and gas producer operating within South America said its proven gross field reserves at the end of 2015 stood at 15.2 million barrels after production during the year made those reserves decline from the 16.2 million barrels at the end of 2014.
Amersiur produced a total of 1.62 million barrels of oil in 2015, driving those reserves down. Production in the year was higher than the decline in reserves because the company's new technical model envisages more oil can ultimately be recovered from its reserves than it did before.
Proven plus probable reserves at the end of 2015 stood at 23.7 million barrels, down from 24.55 million barrels at the end of 2014.
Amerisur said no barrels were added to the reserves in 2015 through drilling after the company made a decision back in the first quarter of the year to shut-in unprofitable production and reduce spending.
"The board expects an increase in reserves once production increases again from currently shut in pads, which will happen gradually following the commissioning of the OBA pipeline which is due in April 2016 and once the much reduced operating expenditure per barrel comes through from production going through the OBA pipeline," said the company.
Amerisur added that the additional drilling activity planned on the Platanillo field in Colombia during 2016, including two infill wells and up to two wells from the 2N drilling pad in the northern part of the field, should help boost its reserves in 2016.
The company also plans to drill wells on Put-8 and Coati, both in Colombia, and carry out a long term test of the Temblon discovery to the south of the Coati block, which will also help boost reserves in the year.
Amerisur said long term testing must be carried out for at least six months before resources can be categorised as reserves.
"An update of the resources report is currently under preparation by Petrotech Engineering Ltd in relation to all Amerisur's portfolio, including the Put-8, Andaquies and Coati blocks which were acquired after the year end. It is expected to publish the results of that study in in the weeks ahead," said Amerisur.
By Joshua Warner; [email protected]; @JoshAlliance
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