Colombia: Amerisur Resources announces reserves, operational and production update
22 Jan 2019
Amerisur Resources, the oil and gas producer and explorer focused on South America, has provided a reserves, operational and production update, for its two core regions of Colombia: CPO-5 in the Llanos basin with ONGC Videsh; and the Putumayo basin with Occidental Andina and other partners.
Highlights:
- Preliminary results of independent reserves report (assuming conservative production parameters) on CPO-5 (Amerisur 30%) indicates gross 2P reserves of 22.7 MMBO at Indico-1X and 2.9 MMBO at Mariposa as at 17 January 2019
- Reserves report attributes mean gross prospective resources of 49.3 MMBO to the LS3 play around the Indico and Mariposa discoveries which are the targets of a new upcoming drilling programme
- Indico-1X currently producing under choked natural flow at approximately 5,130 BOPD
- Mariposa-1 continues to produce in natural flow at approximately 3,150 BOPD, with the field development plan under preparation by the operator
2019 work programme targeting:- 49.3 MMBO from a minimum of four additional wells from the Indico pad to determine the prospectivity of the area within the LS3 play
- Drilling of the first of up to six wells on Coendu structure (Put 9 and Put 12) is expected to begin in Q3 2019
- Miraparriba-1 expected to spud in H1 2019 on Put-8
Group average daily production in Q4 2018 was 4,602 BOPD, with peak daily production 5,405 BOPD. Production was impacted by completion issues in Platanillo 22 and 8. Current production rate is 5,426 BOPD - Ministry of Mines and Energy of Colombia approval to begin the purchase and shipping of third party crude via the OBA expected in H1 2019
Location of Amaersur’s Colombian assets
CPO-5 (Amerisur 30%, ONGC Videsh 70% and operator)
Indico-1X Update
Indico-1X is currently producing under an extension of the short term test (STT) programme granted by ANH, while the application for Long Term Test (LTT) is processed. The well is currently producing in natural flow at approximately 5,130 BOPD with 0.19% water cut over a 46/64″ choke.
Mariposa-1
Mariposa-1 continues to produce in natural flow in a stable manner at approximately 3,150 BOPD with 0.4% water cut over a 28/64″ choke. The well has produced approximately 1,300,000 BO since the beginning of the LTT. The Mariposa structure has now been declared a commercial discovery by ANH and the field development plan is under preparation by the operator.
Reserves
The Company commissioned a preliminary study of the Indico-1X discovery and an update of the Mariposa structure analysis by McDaniel and Associates Consultants Ltd (McDaniel) of Calgary. Based upon initial data, McDaniel has calculated the following gross technical recoverable volumes within the Mariposa and Indico structures to date:
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CPR Resources McDaniel was also commissioned to review the local structures associated with the LS3 play in the area of Indico and Mariposa at CPO-5, which are the targets of upcoming drilling. This review was performed on a simple structural basis only and the results are shown below:  Future drilling As previously reported, the Company and partner ONGC Videsh, are planning a minimum of four additional wells on the basis of the Indico discovery. The current programme is: Calao-1, targeting a structure alongside Indico to the southwest, towards the Aguila structure which is expected to spud before the end of January 2019. On a simple structural basis, McDaniel estimates prospective resources at Calao of between 2 and 9.8 MMBO. Pavo Real-1, targeting a similar structure adjoining Indico to the northeast. Structural evaluation by McDaniel estimates prospective resources of 4 to 45 MMBO in the combined Indico-Pavo prospect area. Given the potential for combination trapping, the Company believes potential resources may be significantly higher at both Calao-1 and Pavo Real-1. Following these wells, a further two appraisal wells will be drilled within the Indico discovery from the Indico pad, with the objective of building production and refining resources and reserves estimates. Sol-1 is drill-ready and the Company is considering with its partner whether to drill this well following the above programme or to take up the option for a second drilling rig in the short term. In addition, the partners are evaluating a further increase in drilling activity for 2019, targeting an accelerated appraisal/development of the Indico field, the NE structures and other prospects associated with Indico down-dip and Mariposa offsets. This may involve the contracting of a third drilling rig. Putumayo region PUT-8 (Amerisur 50%, Vetra Exploration 50% and operator) The Company and operator Vetra continue to pursue the approval of Ecopetrol in order to drill the Miraparriba-1 well from the Cohembi-2 pad. The well will target a light oil U and T sand structure defined by 3D seismic. This approval is expected in the first quarter. The environmental studies required to drill the Bienparado structure, to the west of Platanillo field are now underway. Additionally, it is planned to acquire a total of 112km2 of 3D seismic data over the Nyctybius prospect in the central part of the block. PUT-9 (Amerisur 50% and operator, Occidental 50%) / PUT-12 (Amerisur 60% and operator, Pluspetrol 40%) Environmental studies have been completed for the construction of a 10.2km road from the Platanillo field to the Coendu prospect in the PUT-9/12 blocks. The civil works on this access road are expected to commence within six weeks and drilling of the first of up to six wells on Coendu is expected to begin in Q3 2019. In PUT-12, the Company has begun a second 2D seismic acquisition programme of 73km in the south-eastern part of the block. Tacacho and Terecay (Amerisur 50% and operator, Occidental 50%) / PUT-30 and PUT-14 (Amerisur 100% and operator) The Company is currently updating the local permits and socializing the activities shortly to commence in these blocks. The initial programme envisages the acquisition of approximately 200km in Tacacho and 470km in Terecay of 2D seismic data in H1 2019. At PUT-30, Amerisur is completing the final phase of the Prior Consultation (Consulta Previa) with an indigenous community within the block as a necessary step before seismic data acquisition during 2019. The acquisition of PUT-14 by Amerisur has now been approved by ANH and the funds associated with the transaction have been received by the Company. Amerisur is continuing the Prior Consultation with local communities before initiating the seismic programme during 2019. Q4 Production and OBA throughput Total production in the fourth quarter from the Platanillo and the Mariposa fields was 423,386 BO, with an average daily production of 4,602 BOPD. Platanillo production was impacted by completion issues in Platanillo 22 and 8, which occurred during interventions. These wells have now been evaluated and are currently being treated to return them to production. Further well interventions are planned on 24, 21, 25ST1, 17 and 7 as part of the normal maintenance and optimization operations in the Platanillo field. Current group production is 5,426 BOPD which includes the Company’s share of the production from Indico-1X. OBA throughput in Q4 was 236,833 BO with average daily throughput of 2,574 BOPD. This was lower during the fourth quarter owing to the phasing of 2019 Government royalty barrels (“Royalty Barrels”). Royalty Barrels are collected at the Platanillo wellhead and transported by road. The Government elected to take delivery of its 2019 Royalty Barrels disproportionally in Q4, leading to lower utilisation of the OBA in Q4. As a result of lower oil prices in the fourth quarter, the Company decided not to make sales from Platanillo in the month of December, and instead chose to store produced barrels for sale at higher oil prices in the first quarter of 2019. The Company is awaiting the approval of the Ministry of Mines and Energy in order to begin purchase and shipping of third party crude via OBA. That approval is expected in H1 2019. John Wardle, CEO of Amerisur Resources, said: ‘Our strategy continues to be to create shareholder value through exposure to material upside in our portfolio, where we continue to deliver by way of our active programme with the drill bit in two core areas of Colombia. Our forward activities are all fully funded from internal resources and positive cash flow from our producing assets, and we remain debt-free. ‘We are extremely encouraged by the progress made across our portfolio during 2018. In particular, the excellent results at Indico, where we have added immediate material reserves with very large future upside. McDaniel have a long history and detailed understanding of the Llanos basin in Colombia and the attribution of substantial reserves at this very early stage is a reflection of the quality of our LS3 play. ‘The activity we plan in CPO-5 and in our acreage in the Putumayo basin during 2019 has the potential to transform Amerisur – I have never been more excited by, or optimistic about the Company’s future.’ Source: Amerisur Resources Amerisur Resources announces CPO5 operational update02 Jan 2019 Highlights
 John Wardle, CEO of Amerisur said: ‘The confirmation of no OWC within the drilled reservoir at Indico-1 and the initial flow rates on STT are very encouraging indeed. We are very pleased to have agreed an augmented drilling programme from the Indico pad with our partner. These wells already have all required environmental permits and hence can be drilled immediately, targeting important offsets to the Indico play. Indeed after re-location of the drilling rig we hope to initiate Calao-1 during January 2019. The initial flow data also support our view of the importance of this play, not just at Indico but also in the surrounding area, extending down to Mariposa and up to the Aguila and then Sol structures. We have no doubt that further flow improvements may be achieved during LTT, as well as improvements to surface facilities in order to optimise production from the well. We are now evaluating the resource potential within the Indico structure, with the help of the data acquired to date and of course utilising additional data that will be acquired under the continuing STT and subsequent LTT. ‘These latest data from the well further indicate that we are developing an important play fairway within the LS3 unit of our large CPO-5 block, with significant upside both in the Indico accumulation, other structures to be drilled in the immediate future, as well as a long programme of exploitation within this sizeable block which is five times the size of our Platanillo block.’ Indico-1 Initial analysis by the Company indicated that a 283 feet gross, 209 feet net, oil column is present in the LS3 formation at Indico-1. The LS3 unit is a high quality sand with some shale intercalations, principally towards the base. The LS3 unit sits upon Palaeozoic basement. In the initial analysis, no Oil-Water-Contact (‘OWC’) was detected in the wireline logs acquired in the well, hence the base of the oil column encountered at the Palaeozoic level represents a Lowest-Known-Oil for the Indico structure. The wireline formation pressure and sample data subsequently acquired in the LS3 formation confirmed an oil column throughout the reservoir, with no indication of an OWC. Initial STT operations have been conducted on the well after running and cementing a 7 inch production liner. A 40 feet interval of the upper reservoir was perforated and a completion was installed in the well. The well initiated production in natural flow. After a short clean-up period a 24 hour pressure build up (‘PBU’) test was performed. The well was subsequently flowed at a series of choke sizes, known as a Multi-Rate-Test (‘MRT’), flowing 35.9° API oil to surface. The final flow rate in this MRT was 4,530 barrels of fluid per day (gross) with a water cut of 0.33% at a choke size of 40/64″ and a wellhead pressure of 241psi. Following the first MRT, the well was closed in for a further 48 hour PBU, after which downhole pressure gauges were retrieved and downhole samples captured. The well is currently producing over a controlled choke of 28/64″at a rate of approx. 2,680 bopd with 447psi wellhead pressure, while the drilling rig is rigged down. It is envisaged that the well will continue to be produced under STT while application is made to ANH to begin a Long-Term-Testing (‘LTT’) programme on the well. The LS3 sand package is the same formation which holds the 120 feet oil column discovered at Mariposa, which lies some 6.5 kms to the northwest of Indico-1. The Mariposa well has produced at a stable rate of approximately 3,200 barrels of oil (gross) per day in natural flow from 12 feet of perforations near the top of the 120 feet oil column for over a year, during which time it has produced over 1.2 million barrels of oil with no significant water cut, which remains at 0.05%. CPO-5 augmented drilling programme The scale of the reservoir thickness and oil column at Indico-1 has important implications for the prospectivity of the area within the LS3 play, as well as the degree of fill within Indico. In particular, additional structures alongside the Indico structure may now be considered to form part of the play fairway. This has led the Company and the Operator to agree an augmented forward drilling programme, with additional directional wells to be drilled immediately from the Indico-1 location. The first additional well will be Calao-1, which is targeting a structure alongside Indico to the southwest, towards the Aguila structure. On a simple structural basis, the Company estimates potential resources at Calao of between 2 and 7 mmbo. However, given the results at Indico-1, which indicate the potential for combination trapping, the Company believes potential resources may be significantly higher. The same holds for the second well to be drilled after Calao-1, named Pavo Real-1, which targets a similar structure to Calao, adjoining Indico to the northeast. Structural evaluation by the Company estimates potential resources of 2 to 23 mmbo in this prospect. It is envisaged that following these wells, a further two appraisal wells will be drilled in the Indico structure from the Indico-1 pad, with the objective of refining resources and reserves estimates. Sol-1 is also drill-ready, and the Company is considering with its partner whether that well should be drilled following the programme at Indico pad or whether a second drilling rig should be contracted to drill the well in the short term. Source: Amerisur Resources
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