29th Jul 2008 07:00
29th July 2008
Amerisur Resources Plc ("the Company")
AGM Trading Update
Amerisur Resources Plc, the oil and gas explorer and developer focused on South America, holds its Annual General Meeting ("AGM") today at 10.00am.
At that meeting, Giles Clarke, Chairman will make the following comments:
"We are very pleased with our achievements in the past year to focus the business on achieving our three priorities - generating cash flows, delivering production and increasing our exposure to low risk, high impact prospects.
"Since becoming operator of the Platanillo block in June, and recently gaining the controlling interest in the Fenix block, we are already seeing the benefits of greater control.
"The Board looks to the short, medium and long-term future with a significant degree of confidence, given the current and forthcoming production and the powerful position we have with our two main low risk and highly prospective blocks, which demonstrate production, known resources, exciting upside to those resources and an extremely attractive suite of exploration prospects."
John Wardle, Chief Executive Officer will give the following update:
"We are pleased to have recommenced the long-term testing of Alea-1R well. Last year, we re-perforated the Lower U Sandstone and produced approximately 10,000 barrels of oil during an initial test of three months. On Sunday 27th July the well Alea-1 was re-opened on a 10/64" choke into newly commissioned facilities. Those facilities were approved by Ministry of Mines and Energy (MME) to perform a Long Term Test until at least the end of the current evaluation period, 9th January 2009. The well is currently producing at a rate of 85 BOPD on the above mentioned choke setting, on natural flow with 160psi of pressure at the wellhead. Installations continue to place Platanillo-2 on line, which is expected within the next 10 days.
"We have now been operator at Platanillo for almost a month, and it is becoming evident that this increased control is enabling us to accelerate the work programme. We believe there is significant value and are applying all efforts to turn these discoveries into commercial production. Long-term testing of the two wells over the coming months will help us determine the next phase of the work programme for this block.
"On Fenix, we are very encouraged by the results of the 2D and 3D seismic data, which has now been analysed, and to date have identified two very interesting exploration leads and a firm exploration prospect in this block. The prospect is an up-dip target from the wells La Tigra-9 and 10, drilled in 1927 and 1969 respectively, which both produced oil. The Company believes those wells did not reach the principal sands in the reservoir sections, and plans a well to test those intervals. The potential resources associated with this target are 8 to 16 MMBO. The southern lead is a structure similar to the Bonanza field alongside. This lead may contain potential resources in the range 5 to 23 MMBO. The second lead is an extension of the La Tigra trend to the north, and may have a resource potential of 15 to 45 MMBO.
"Now we have control, there are attractive options to take forward a cost effective and focussed drilling programme and are currently in potential farm out discussions. We expect the first well to be spudded in Fenix during the second quarter of 2009, subject to the award of an environmental license and drilling rig availability.
"We are also considering other potential prospects and have a pipeline of activity that we anticipate has the capacity to deliver additional medium term production."
- Ends -
Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 24 years experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.
ENQUIRIES:
|
Billy Clegg/Caroline Stewart, Financial Dynamics |
Tel: +44 (0)207 831 3113 |
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Jerry Keen/Rhod Cruwys, Blue Oar Securities Plc |
Tel: +44 (0)20 7448 4400 |
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