Oil Discovery at Indico-1

10 December 2018

Amerisur Resources Plc ("Amerisur" or the "Company")

Statement re: Media Speculation - Oil Discovery at Indico-1

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, notes the recent media speculation and is pleased to announce that drilling at Indico-1 well on the CPO-5 block (AMER 30%) has reached target depth of 10,604 feet measured depth and has encountered the targeted Lower Sands (LS3) of the Une formation.

The LS3 sand package is the same formation which holds the 120 feet oil column discovered at Mariposa, which lies some 6.5 kilometres to the North West of Indico-1. The Mariposa well has produced at a stable rate of approximately 3,200 barrels of oil per day in natural flow from 10 feet of perforations near the top of the 120 feet oil column for over a year, during which time it has produced over 1.2 million barrels of oil with no significant water cut, which remains at 0.05%.

The well Indico-1 has now been logged with a Triple-Combo wireline logging suite from Schlumberger. Initial analysis by the Company indicates that a 283 feet gross, 209 feet net, oil column is present in the LS3 formation. The LS3 unit is a high quality sand with some shale intercalations, principally towards the base. The LS3 unit sits upon Palaeozoic basement. In the Company's initial analysis, no Oil-Water-Contact ("OWC") was detected in the wireline logs acquired to date, hence the base of the oil column encountered at the Palaeozoic level represents a Lowest-Known-Oil for the Indico structure.

The next steps for the well operations include the acquisition of further wireline logging data, including pressures and samples across the reservoir. A 7-inch production liner will then be run and cemented followed by short term testing of the well.

Further updates will be provided as operations develop and the volumetric models are refined based on logging and testing data. 

Once operations are complete at Indico-1, the rig will move to drill Sol-1, which is a further 6.5 kilometres south of Indico-1 and approximately 13 kilometres southeast of Mariposa-1. The Sol-1 well will also target the LS3 unit as encountered in Mariposa-1 and Indico-1.

John Wardle, CEO of Amerisur said:

"In our view the principal pre-drill risk in this well was the presence of significant sand development in the Une formation. The results of the drilling have significantly exceeded our expectations in this respect and of course the very significant oil column encountered means we will have to review, with our partner ONGC Videsh, the resources associated with the Indico structure. The fact that no OWC was encountered is also very positive for the eventual size of recoverable reserves within the structure. Naturally, given this result, the Company and our partner will be reviewing options for further appraisal wells into the Indico structure in the short term, which will be required to further extend and define the resources encountered.

"Our impression now is that we are developing an important play fairway within the LS3 unit of our large CPO-5 block, which will be further explored with the drilling of Sol-1 post short-term testing of Indico-1."

Giles Clarke, Chairman of Amerisur said:

"This is an excellent result for Amerisur and our partner ONGC Videsh, and underlines the very high potential of this Llanos basin block. I take this opportunity to congratulate ONGC Videsh on this important success and to thank them for their efficient and productive drilling of this key well."

ENDS

Enquiries:

Notes to editors

About Amerisur Resources

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay and production from two fields in Colombia. In 2016 Amerisur successfully built and is 100% owner of the strategic OBA oil transfer line into Ecuador.

In Colombia, the Company is operator and has a 100% working interest in the Platanillo block which includes the Platanillo producing field in the Putumayo basin, and holds a 30% non-operated working interest in the CPO-5 block containing the Mariposa-1 producing field and the Indico-1 discovery well in the Llanos basin.

Amerisur has a strong position in the Putumayo basin and has a cluster of near term activity assets around the OBA export line.

Amerisur recently announced a $93.25mm farm out to Occidental Andina for 50% working interest in the blocks Put-9, Mecaya, Terecay and Tacacho.

These assessments are made in accordance with the standard defined in the SPE/WPC Petroleum Resources Management System (2007).

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 32 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.

www.amerisurresources.com