Amerisur Resources PLC OBA Third Party Transportation Approvals (1141Y)
07 May 2019 - 4:01PM
UK Regulatory
TIDMAMER
RNS Number : 1141Y
Amerisur Resources PLC
07 May 2019
7 May 2019
Amerisur Resources Plc
OBA Third Party Transportation Approvals
Highlights
-- Approvals in place to transport third party volumes through OBA
-- Creates the potential for a material revenue generating opportunity
-- Initial volumes to be sent shortly, building through H2/19 to around 2,000BOPD
Amerisur Resources Plc ("Amerisur" or the "Company"), the oil
and gas producer and explorer focused on South America (LSE: AMER),
is pleased to announce that the company has received all the
required approvals to begin transportation of third-party crude via
the 100% owned OBA pipeline system to Ecuador. Access to this lower
cost route to market for Putumayo Basin production in southern
Colombia has the potential to generate material revenues for the
Company.
Facilities Ready
Amerisur will purchase oil from third party producers at the
existing Platanillo reception facilities based on the sales price
at Esmeraldas, minus a negotiated margin. The oil will be sold
subsequently in a back to back arrangement through an existing oil
sales agreement. The Company takes no commodity price risk.
The OBA has a technical capacity of 50-70,000 BOPD with
currently installed export pump capacity of 18,000 BOPD. The
minimum transport capacity through the RODA is 9,000 BOPD.
Commercial Terms Agreed
The company has reached agreement with another producer in the
Putumayo Basin to start crude transportation. Initial volumes are
expected to arrive later this month and build, as the system is
proved, to around 2,000 BOPD through H2 2019. Third party oil will
be received at existing Platanillo field facilities, where it
becomes Amerisur owned and is then transported via the OBA to the
Amazonas Oil Pipeline System (RODA) to be dispatched, from Lago
Agrio, to the port of Esmeraldas.
John Wardle, CEO of Amerisur Resources said:
"These approvals create a consistent revenue generating
opportunity from the OBA, further to material cost savings
delivered since operations started in Q4 2016. In addition, the
ability to transport additional volumes, including third party oil
through the Ecuadorian network was a significant factor in securing
the Occidental farm-in deal. This represents a major step forward
in the profile of the Putumayo Basin".
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Ends
Enquiries:
Nathan Piper, EVP, Head of Business Development Tel: +44 (0)330 333
and Comms 8273
Amerisur Resources
Billy Clegg/Kimberley Taylor Tel: +44 (0)203 757
4983
Camarco
Callum Stewart/Nicholas Rhodes/Ashton Clanfield Tel: +44 (0)20 7710
Stifel Nicolaus Europe Limited 7600
Chris Sim/Alex Ruffman/Tejas Padalkar Tel: +44 (0)207 597
4000
Investec
Paul Shackleton/Dan Gee-Summons Tel: +44 (0)207 614
Arden Partners Plc 5900
About Amerisur Resources
Amerisur Resources is an experienced Colombian Operator with an
extensive, strategic acreage position in the underexplored Putumayo
Basin with Occidental Petroleum ("Oxy") and a the prospective Block
CPO-5 in the Llanos Basin with ONGC. Amerisur is the 100% owner and
operator of the OBA pipeline, a key piece of strategic,
cross-border export infrastructure delivering oil from the Putumayo
in Colombia into Ecuador. Amerisur produces from three fields,
Platanillo, Mariposa and Indico that together generate cash flow to
fund its work programme. Amerisur has recently announced a
potentially transformational result at Indico-1, which
significantly exceeded expectations - 283 feet gross, 209 feet net
oil column without an oil-water-contact.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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