Amerisur makes a move

 

On 26 January 2016, Amerisur announced the acquisition of Platino Energy (Barbados) Ltd, a subsidiary of COG Energy, a private E&P with a focus on Colombia. The consideration for the transaction is USD7 million which we be paid entirely in Amerisur stock, through the issuance of 22.7 million new shares. A further payment of USD500,000 in cash will also be made in respect of fixed assets. As part of the deal, COG is entitled to a 2% overriding royalty if production in the acquired blocks exceeds 5,000bopd.

The transaction adds prospective acreage (190mmbbls unrisked resources) to Amerisur’s Putumayo Basin portfolio at a limited cost with drill ready prospects close to the company’s Platanillo field. Commitments are limited to USD12 million across the next three years. New production from the blocks would have access to Amerisur’s new pipeline to Ecuador, once completed.

The acquired assets include:

• PUT-8 (Amerisur 50%) immediately west of Platanillo with 45mmbbl in unrisked resources in similar structure
• Coati Block (Amerisur 100%) holds 79mmbbl unrisked resources and the Temblon field with long-term testing potential; the next exploration well is partly carried by Canacol (part of farm-in deal for 20%, excluding Temblon)
• Andaquies Block (Amerisur 100%)

The blocks have no or limited X-factors and are covered by 2D and 3D seismic. Drilling commitments include one exploration well on PUT-8 and the Andaquies Block by May 2017 (although some environmental licenses are still to be secured).

On the export pipeline, Amerisur continues to engage with the Ecuadorean authorities to secure the final EIA approval and complete construction of their strategic pipeline connection through Ecuador. This will reduce transportation costs and increase off take capacity.

Amerisur's acquired and existing acreage
Source: Broker research