Amerisur is focusing on developing its assets in Colombia, which has a well established petroleum industry with highly productive basins, yet remains relatively unexplored. The Company believes there remains significant opportunity to explore lower risk opportunities aiming to deliver significant medium term cash flows through focussed exploration in Colombia.
Amerisur has a cluster of assets around the OBA pipeline including Platanillo, Put-8 and Put-12, able to utilise the lower cost OBA export route. In addition, Amerisur has interests in Coati, Put-30, Andaquies, CPO-5 and Tachacho. It will continue to review new portfolio additions in Colombia that offer near to mid-term production opportunities that provide value for shareholders.
The Company is Operator and has a 100% working interest in the block. The 14,341 hectare block is located in the Putumayo Basin, in the south of Colombia. The Company has continued to make excellent progress with the drilling and production programme in Platanillo, having successfully drilled 15 wells, three sidetracks and one infill well.
The OBA interconnector pipeline connects production from the Platanillo field under the Putumayo River into the Victor Hugo Ruales pipeline infrastructure in Ecuador. The pipeline is now operational and has increased production capacity constraints.
• OBA pipeline is complete and operational.
• Highest daily throughput has been 4,110 barrels of oil on 9 December 2016.
• The first infill well, Platanillo 8, has been drilled and encountered oil columns in the Upper U, Lower U and T sands, with excellent reservoir quality.
• Drilling has commenced on the second infill well, Platanillo 24.
Acquired in January 2016, the Put-8 Block is adjacent to the west of the Platanillo field and is in Phase 1 of its exploration period with a 2% X Factor and low work commitments of one exploration well and 208km2 of 3D seismic.Amerisur has a 50% (non-operated) working interest and Vetra holds the remaining 50% and is Operator.
• Inversion processing of 2D and 3D seismic data in progress.
• The Company has begun the studies required to apply for an exploration environmental license in the central to northern part of the Platanillo block (which includes Put-8). It is expected to complete these studies in Q1 2017.
Acquired in January 2016 as part of the Platino transaction, the Coati Block, 100% owned and operated by Amerisur, is located in the South West of the Putumayo basin, adjacent to the Loro and Hormiga oil fields and is in Phase 3 of its exploration period with no X Factor and low work commitments.
Canacol Energy Colombia SA ("Canacol"), a subsidiary of Canacol Energy Ltd. of Canada has a 40% working interest in the exploration area of the Coati contract. The consideration for the farm in is a total carry of US$10.75 million, of which US$6.95 million is outstanding in favour of Platino Energy ("Platino").
Seven prospects and leads have been identified on 2D seismic with unrisked resources of 79 MMBO.
• The Company is currently performing the Consulta Previa required by law with local indigenous communities in order to initiate the seismic and long term test ("LTT") programmes in this block.
• The Company expects to complete this process in Q1 2017.
• The LTT is expected to begin in Q2 2017.
Put-12 was acquired following a successful bid in November 2012, in a joint venture with Pluspetrol. It is a 55,000 hectare block which is adjacent to Platanillo and shares its geology. The Company is Operator with a 60% working interest. The bid included a commitment to a seismic acquisition programme and the drilling of one exploration well during the first three year exploration phase.
• 2D seismic to commence on the resolution of social issues, which is anticipated during Q1 2017. This will focus on the Western prospects in the block, as on success these could be tied into the Platanillo infrastructure.
• The Company has begun the studies required to apply for an exploration environmental license in the central to northern part of the Platanillo block (which includes Put-12). It is expected to complete these studies in Q1 2017.
Put-30 covers approximately 38,514 hectares and lies within the Putumayo basin, approximately 55km to the north of both the Company's 100% owned Platanillo field and 60% owned Put-12 Contract. The Company has formed a joint venture with Talisman Colombia, with each party owning 50% respectively.
The block has cretaceous potential and is a recognized Tertiary play concept. The joint venture will explore to evaluate the potential of producible heavy oil deposits in the Neme formation.
• The social consultation process is in progress and is expected to be completed in H1 2017.
The Andaquies Block, 100% owned and operated by Amerisur, was also part of the Platino acquisition and is located in the north east of the Putumayo Basin with no X Factor and low work commitments of one exploration well by May 2017. The block has multiple proven reservoir targets, six mapped leads targeting both proven and novel plays and unrisked resources of 66MMBO prospects both proven and unproven and sits to the north east of a proven structural play within the Putumayo Basin.
• The environmental management plan ("PMA") is currently under preparation.
CPO-5 was acquired in June 2015 through the Company's acquisition of Petro Dorado South America SA (PDSA) a subsidiary of Petro Dorado Energy Ltd (PDEL). Amerisur has a 30% (non-operated) working interest in the contract, ONGC Videsh Ltd holds a 70% working interest and is the Operator.
CPO-5 is an Exploration and Production Contract, covering 198,000Ha and located to the south of block Llanos 34 and to the east of the Corcel fields. The block includes the evaluation area related to the Loto-1 oil discovery. That well was drilled in 2013 and tested oil in the Mirador formation during a short test however lack of zonal isolation prevented performance of a long term test. Core and electric log data indicate 61ft of net pay within the Mirador. A further two wells within the north western sector of the block, Kamal and Metica also tested oil.
• Amerisur and ONGC Videsh have defined the location of two exploratory wells within the North West 3D seismic data. The Company expects to drill the first of the two wells in April 2017.
• The testing data from the Loto-1 Mirador L4 zone is undergoing analysis.
Tacacho was acquired in June 2015 through the Company’s acquisition of Petro Dorado South America SA (PDSA) a subsidiary of Petro Dorado Energy Ltd (PDEL). Amerisur has a 49.5% (non-operated) working interest in the Tacacho contract, Pacific Stratus Energy holds 50.5% and is the Operator.
Tacacho is an Exploration and Production contract, covering 238,000Ha in the eastern Caguan-Putumayo basin. It is a heavy oil exploration play, supported by regional studies which indicate a continuation of the heavy oil trend extending from the eastern llanos basin through to the ITT field complex in the eastern Oriente basin of Ecuador. Additionally, the well Solita-1, drilled nearby by Texaco in 1948 indicated the presence of hydrocarbons in the Pepino formation. Large structures have been defined on existing 2D seismic, with closures at both the base and top of the Pepino formation. The contract is currently in Phase 1, where the exploration commitment is 480km of 2D seismic. The phase is currently suspended while social consultations and security planning is performed.