Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce an update to the certified reserves for its production assets in Colombia.
Following receipt of an independent reserves report for the Platanillo field as at 31 December 2015 undertaken by Petrotech Engineering Ltd, using the standards set by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers, certified 1P (Proven) gross field reserves were 15.2 million barrels of oil ("MMBO") (2014: 16.2 MMBO) after production of 1.62 MMBO during 2015 and 2P (Proven and Probable) gross field reserves were 23.7 MMBO (2014: 24.55 MMBO).
Production during 2015 was 1.62 MMBO; hence current 1P reserves represent a small increase from year end 2014. This technical increase of the Expected Ultimate Recovery ("EUR") (a forward looking model which assumes a decline factor and projects the volume of oil which will ultimately be recovered) takes account of the successful Long Term Test of the T sands from Platanillo-20 undertaken during the year. In addition, the reserves have benefitted from an increase in the recovery rates per well following the Schlumberger integrated study and the results of the successful treatments of well Platanillo-14 and Platanillo-20. During the period there were no reserve additions from the drilling of new wells as no new development or appraisal wells were drilled on the Platanillo field following the Board's responsible decision in Q1 2015 to shut in unprofitable production and only spend in risked capex what the production generated in cash flow.
The Board expects an increase in reserves once production increases again from currently shut in pads, which will happen gradually following the commissioning of the OBA pipeline which is due in April 2016 and once the much reduced opex per barrel comes through from production going through the OBA pipeline. In addition, the additional drilling activity planned on Platanillo in 2016, including two infill wells and up to two wells from the northern pad 2N, which seek to extend the field limits, together with the drilling of wells on Put-8 and Coati and the Long Term Test of the Temblon discovery to the south of the Coati block, should result in an increase in both 1P and 2P reserves. It is worth noting that six months of Long Term Testing is required before resources can be categorised as reserves.
An update of the resources report is currently under preparation by Petrotech Engineering Ltd in relation to all Amerisur´s portfolio, including the Put-8, Andaquies and Coati blocks which were acquired after the year end. It is expected to publish the results of that study in in the weeks ahead.
John Wardle, CEO of Amerisur Resources said:
"When taking account of the 1.62 MMBO we produced last year, I am pleased reserves have in effect increased this year following the Long Term Test of the T sand in Platanillo-20, and the Schlumberger integrated study, despite no additional drilling on the Platanillo field. With our accelerated activity plan for 2016 in which will see drilling on Platanillo, Put-8, Coati and the Long Term Test of the Temblon discovery in Coati South, we should see positive reserves momentum in 2016. Indeed the Jaguarete well, which is due to spud in April in Paraguay, on success, has the potential to substantially increase the company's reserves and resources base."
Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 31 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.
Petrotech Engineering Ltd is an independent reserves assessor and conducts independent reserves reports for companies such as Canacol Energy Ltd, Pacific Rubiales and Petro America Oil Corp amongst others.