Amerisur Resources Acquires Fenix Oil & Gas
The Company has acquired the entire issued share capital of Fenix Oil and Gas S.A. for a total consideration of US$4.3m satisfied in cash from existing resources. Fenix Oil and Gas S.A. has a 35% working interest in the Fenix block and no other material assets. The acquisition increases the Company’s working interest in the block to 83.75%. The Fenix block is an area of 24,117 hectares located in the Middle Magdalena Basin of Colombia. The acquisition will complete on December 6th.
The Company also has signed heads of terms to acquire from Petex Offshore Inc the remaining 16.25% interest in the Fenix block. In addition, as part of the agreement Amerisur will no longer be required to pay Petex Offshore 15% of Amerisur's net profits from the Platanillo block. The total consideration for the transaction with Petex Offshore Inc will be 18,250,000 new ordinary shares of 0.1p each in Amerisur.
This transaction is expected to be completed shortly and a further announcement will be made. The Fenix block is an exploration stage project and the Platanillo block contains contingent and prospective reserves. The effect of these transactions will be to increase the economic interest the Company will have in the two blocks.
The Company is currently interpreting the 103km2 of 3D seismic data acquired in this block during 2007. This work will be completed during Q1 2008. However, an initial study focussed on the southern part of the survey, which adjoins the Bonanza field operated by Ecopetrol, and which contains the La Tigra wells has indicated some interesting opportunities. As an example, among these is the well La Tigra-10, drilled by Sinclair –BP in 1969, where 30.1 API degree oil was produced from a formation at approximately 4,750 ft. Our initial analysis indicates that the structure tested by that well may have a significant closure above the level at which the original well penetrated the reservoir. In addition, the target reservoir within the Lisama sands was not reached by the well. This analysis indicates that reserves potential within the area studied (approximately 16 km2) may be in excess of 8 MMBO. The Company will shortly submit an application for an environmental license for the area, which is required before operations can commence.
Platanillo-2, the second new well in the current phase of the Platanillo contract has been drilled to a total depth of 8,578ft. The Lower U sand, which is productive in Alea-1 was encountered approximately 20ft higher than in Alea-1 and 75ft higher than in Platanillo-1. Good shows of oil were observed at that horizon and at several other zones within the reservoir. The condition of the wellbore in this directional well prevented full access of electric logs, however the indications during drilling and the fact that the productive interval was encountered higher indicated that the well should be tested. Accordingly, the well has been secured with 7" casing, which has been run to total depth and cemented successfully. The rig Pride-17 has now been released and is currently being demobilised. The work over rig Pride-6 will be moved to Platanillo-2 during the first week of December and will be used to test the well. The use of the work over rig will facilitate the testing phase and in addition is a more economic alternative. The testing program will be defined after acquiring further electric logs through casing, and it is expected that at least 2 separate zones will be tested. The Company expects that program to begin within the next 15 days.
During the drilling of Platanillo-2, Alea-1, currently undergoing Long Term Testing, has been in intermittent production, having been closed in during certain operations to ensure that such activities were not impaired. The well is currently producing at a controlled rate of approximately 70 BOPD on a 12/64" choke.
Amerisur holds a 25% working interest in the Platanillo block under the Platanillo E&P Contract with the Colombian National Hydrocarbons Agency. Repsol YPF holds 35% and Ecopetrol S.A. (40%) is the operator.
Giles Clarke, Chairman of Amerisur commented:
"I am very pleased with the increase in our holding in the Fenix block, where we believe there are exciting opportunities to be exploited in the near term. In addition, the Platanillo drilling program is progressing well and we look forward to updating shareholders with the results of Platanillo-2."
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