Amerisur Resources advances on positive Platanillo update

Shares in South America-focused oil and gas producer Amerisur Resources rose on Monday after the company unveiled a positive update on its operations at the Platanillo Field in Colombia.

The AIM-listed company reported that the area known as the "Platanillo-1 ST1 sidetrack" had encountered a 22 foot (ft) net pay interval in the U sand and produced 530 barrels of oil per day (bopd) in a controlled production test.

Furthermore, the company said that the Platanillo-10 well encountered 68 ft net pay in U and T sands and reported that Platanillo Field production is currently at 4,700 bopd. It pointed out that production was constrained by pipeline and export facility availability and said that total field production capacity was estimated at 6,400 bopd.

The company said that it was active in developing new alternatives for oil delivery, and expected those options to allow a continued growth in production over the coming months.

Dr. John Wardle, Chief Executive Officer of Amerisur Resources, commented: "I am very excited by the result of the Platanillo-1 ST1 sidetrack. To encounter producible oil at that position in the structure augurs well for the size of the eventual recoverable resource in the Platanillo field.

"Additionally, this great result has significantly de-risked the northern section of Platanillo. Based on our 3D seismic and this well data I am confident we will develop significant reserves volumes in the northern part of the block."

Shares in Amerisur Resources were up 5.39% to 53.75p at 09:19 on Monday morning.

MF