Amerisur Shares Approaching 5-Year High

PUBLISHED: 06 Oct 2012 @ 00:15 | Comments (0) | More info about Lou Gutheil

Amerisur’s (LSE:AMER) share price has reversed a slight 2-month downward trend, with a 20% increase over the end of trading last Friday, 28 September. Trading at 40.00 around the noon hour today, is only 2.00 pence short of its 5-year high of 42.00. One year ago, on 04 October 2011, the stock was trading at 9.50.

On 28 September, Amerisur released its 6-month interim results, indicating that it was well on its way to reaching the company’s goal to achieve a production rate of 5,000 BOPD by the end of the year.

Chairman Giles Clarke said in that report, “Results of our new wells are extremely encouraging, highlighting accuracy in our seismic model and excellent production characteristics in the reservoir. We look to the future with significant confidence as we continue our 8 well drilling programme and as we ramp up production to 5,000 BOPD by the year end.”

The stock was already moving back to the 40.00 range, when the company announced this morning that it had placed its Platanillo-5 well into commercial production, turning the expense generator into an income producer. Amerisur expects the initial controlled rate of production to be 1,500 BOPD of 31.8° API light crude. Its final stabilized flow rate was just shy of 2,500 BOPD. That may only be oil to you, but to shareholders it’s music to their ears, especially as it raises the total company-controlled production from 2,000 to 3,500 BOPD, leaving only 1,500 additional BOPD to reach the target of 5,000 by year end.

Amerisur now plans to drill its fourth well at Platinillo at a site approximately 1,550 feet from its Platinillo-3 well. Given their confidence in the accuracy of their seismic research and the relative ease with which they will be able to relocate drilling equipment, the goal of 5,000 BOPD is beginning to appear on the horizon.

Clarke acknowledged the milestone saying, “I am very pleased with this latest result from Platanillo, which further underlines the potential we are dealing with.”

CEO John Wardle said, “I see significant further opportunity as we continue our development programme.”

Amerisur Resources is an oil and gas explorer and developer focused on South America, operating currently in Colombia and Paraguay. Drilling in the Platinillo block in southern Columbia has been the company’s key strategy for 2012.

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