Amerisur Resources reveals 'technical setbacks' at Platanillo well

Lower than expected initial oil production rates at Amerisur Resources' Platanillo-9 well in South America were disclosed in a trading update published by the company on Tuesday morning.

Lower than expected initial oil production rates at Amerisur Resources' Platanillo-9 well in South America were disclosed in a trading update published by the company on Tuesday morning.

The AIM-listed oil and gas production outfit, which focuses on South America, provided a detailed update on its operations in Colombia.

The company said that Platanillo-9, the fourth well in its planned campaign of eight wells in the Platanillo field owned 100% by Amerisur, was successfully drilled to a total depth of 8,689ft.

The well was perforated and produced up to 440 barrels of oil per day while choked back in natural flow with 60psi well-head pressure, significantly below expectations, the company said.

Investigative pressure testing found that the completion packer, a piece of equipment, had failed with respect to pressure integrity. The failed unit was pulled and a replacement hydraulic packer was run and set.

The well was subsequently placed on production, and the group said it is currently producing approximately 730 bopd with a down hole jet pump, taking current controlled production for the field to approximately 4,300 bopd.

However, the well has been damaged by the failure of the original packer and requires a corrective chemical stimulation using a Coiled Tubing Unit.

Dr John Wardle, Chief Executive Officer of Ameriseur Resources, commented: "We are pleased to report further progress towards realising the potential of our acreage. While the technical setbacks in the completion of Platanillo-9 are disappointing, the reservoir quality is high and our structure is developing faithfully to the seismic model, which augurs very well for the future field development."

He added: "Our focus is to create value in all of our assets within the field, as well as to access high value acreage in the same setting. The re-entry of Platanillo-1 is particularly important, since it will add much information about the field, thus assisting us to define ever more closely the ultimate potential of the accumulation."

The price of Ameriseur Resources shares was down 6.29% to 41p at 11:27 on Tuesday morning.

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
What does the Coinbase listing mean for bitcoin and other cryptocurrencies?
Bitcoin

What does the Coinbase listing mean for bitcoin and other cryptocurrencies?

As the bitcoin price hit new highs, the world's biggest cryptocurrency exchange, Coinbase, listed on the stockmarket. John Stepek looks at what that m…
15 Apr 2021
Properties for sale for around £400,000
Houses for sale

Properties for sale for around £400,000

From a converted church in Banffshire with views towards the Cairngorms National Park, to a period property in the Georgian market town of Beverley, e…
2 Apr 2021