Amerisur Resources PLC Acquisition of Petrodorado South America SA (5030R)
June 29 2015 - 5:30AM
UK Regulatory
TIDMAMER
RNS Number : 5030R
Amerisur Resources PLC
29 June 2015
29 June 2015
Amerisur Resources Plc
Acquisition of Petrodorado South America SA
Amerisur Resources Plc ("Amerisur" or the "Company"), the oil
and gas producer and explorer focused on South America, is pleased
to announce the acquisition of Petro Dorado South America SA
(PDSA), a subsidiary of Petro Dorado Energy Ltd (PDEL).
The acquisition has been agreed under the following terms:
-- Payment to PDEL of a total of US$6MM in three instalments,
US$3MM upon closing, and two further instalments of US$1.5 MM at
three-monthly intervals. This consideration may be paid in cash or
in Amerisur stock, based on the 5 day VWAP preceding the due date
for each instalment, at the election of Amerisur. Amerisur has
elected to issue stock for the first instalment and will issue
5,148,447 new Ordinary Shares based on a 5 day VWAP of
37.0214p.
-- The provision of a 2.5% net royalty to PDEL on production
arising from the assets acquired. This royalty is post any
overriding government royalties.
-- Payment by Amerisur of 50% of PDSA net costs (estimated at
US$2MM net) for the ongoing 405km(2) 3D seismic programme in Block
CPO-5. Amerisur will reimburse PDEL for the remaining 50% of those
seismic costs from a further 2.5% royalty until those costs have
been recovered.
The assets acquired through this transaction are:
-- 30% (non-operated) working interest in the CPO-5 contract,
located in the Llanos basin. ONGC Videsh Ltd holds a 70% working
interest and is the Operator.
-- 49.5% (non-operated) working interest in the Tacacho
contract, located in the Caguan-Putumayo basin. Pacific Stratus
Energy holds 50.5% and is the Operator.
In addition, PDSA carries current tax losses of approximately
US$57MM, representing a potential tax benefit to the Company of up
to approximately US$20MM.
CPO-5 is an Exploration and Production Contract with an 8%
sliding scale royalties and a 23% X Factor. It covers 198,000Ha and
is 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.
405km(2) of new 3D data is currently being acquired in the north
western sector of the block, adjacent to the Guatiquia and Akira
discoveries, and covering the entirety of the Loto structure. A
further two wells within the north western sector of the block,
Kamal and Metica also tested oil, and these structures are also
covered by the new 3D data. Amerisur interpretation of the existing
data indicates potential oil in place for the Loto structure of
approximately 44.46MMBO. Loto-2, which will be operated by PDSA
(Amerisur) will be spudded in July 2015. The cost of this well is
expected to be US$6.5MM (gross). In the event of commercial success
in Loto-2, a further two wells may be drilled on a back-to-back
basis. The contract is currently in Phase 2, where exploration
commitments are 250km(2) of 3D seismic and one exploration
well.
Tacacho is an Exploration and Production contract with an 8%
sliding scale royalties and a 0% X Factor, covering 238,000Ha in
the eastern Caguan-Putumayo basin. This 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, with an estimated
cost of US$9MM (gross). The phase is currently suspended while
social consultations and security planning is performed.
A presentation giving further details of the new assets and
activities in these blocks will be available on the Company website
at www.amerisurresources.com.
John Wardle, CEO of Amerisur commented:
"This acquisition creates an important new opportunity set for
Amerisur. Through this transaction we have accessed prime Llanos
acreage in the form of the CPO-5 block, with near term drilling on
a proven discovery at the Loto structure, and considerable further
upside for light and medium oil within the block, which is on trend
with the most important recent discoveries in the basin. Amerisur,
through its subsidiary PDSA and by way of an Engineering,
Procurement and Construction (EPC) agreement with ONGC Videsh Ltd
will operate the drilling, testing and LTT of the Loto wells,
bringing our operational expertise to this discovery to ensure
efficient operations and rapid cash flow generation. The Tacacho
block is also very attractive, being located within the
Caguan-Putumayo heavy oil belt and demonstrating large structures
with exposure to several play types, and as such is an ideal
complement to our strong Putumayo portfolio made up of the
Platanillo, Put-12 and Put-30 blocks."
Giles Clarke, Chairman of Amerisur commented:
"We are very pleased to have closed this important strategic
acquisition on such favourable economic terms and to commence a
relationship with ONGC Videsh Limited, based in a country we know
extremely well. The CPO-5 interest will be our first entry into the
Llanos basin, where our management team have had considerable
success in the past, and where we see strong potential for future
growth, beginning with the appraisal and development of the Loto
discovery. The near term production from this asset will generate
significant cash flows and diversify our production base, giving
greater security in our financial projections and considerable
upside to both net production volumes and reserves. The Tacacho
block also has very impressive potential, and makes an excellent
fit within our Putumayo strategy."
ENDS
Competent person: Technical information in this announcement has
been reviewed by John Wardle Ph.D., the Company's Chief Executive.
John Wardle has 29 years' experience in the industry, having worked
for BP, Britoil, Emerald Energy and Pebercan, and is a trained
drilling engineer.
ENQUIRIES:
Billy Clegg/Georgia Tel: +44(0)203 757 4980
Mann
Camarco
Jeremy Low/Daniel Tel: +44 (0)207 653 4000
Conti
RBC Capital Markets
Chris Sim Tel: +44 (0)207 597 4000
Investec
This information is provided by RNS
The company news service from the London Stock Exchange
END
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