Deals



Amerisur Resources Plc Acquires Platino Energy Ltd


Posted: 26th January 2016 08:26

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to announce the acquisition of Platino Energy Ltd , a private company, from COG Energy ("COG") for a total consideration of US$7MM.

Highlights:

The assets acquired through this transaction are:

The Put-8 Block, adjacent to the west of the Platanillo field, is in Phase 1 of its exploration period and has a 2% X Factor and low work commitments of one exploration well and 208km2 of 3D seismic. The block has had limited exploration and is bordered by a number of proven oil fields. Two drill-ready prospects have been identified on new 3D seismic, adjacent to the Platanillo field and significant upside has been identified in the N sands adjacent to the Cohembi field. The block has unrisked resources of 45MMBO and is currently awaiting an environmental license to advance the exploration programme.

The Coati Block, located in the South West of the Putumayo basin and adjacent to the Loro and Hormiga oil fields, is in Phase 3 of its exploration period with no X Factor and low work commitments. Seven prospects and leads have been identified on 2D seismic with unrisked resources of 79MMBO. Towards the southern end of the block, in the Coati Evaluation Area (Temblón field), there is a proven hydrodynamic trap in the Caballos Formation and a structural accumulation in the T and U sands which have flowed oil and are awaiting extended testing. The Temblón field is currently in an evaluation period. Additional prospectivity has been identified in the exploration areas of block with the Nasua prospect drill ready and N sands with stratigraphic potential in the North of the block. The block is awaiting an exploration environmental license to advance the planned exploration programme. A "consulta previa" with indigenous communities is required by law in order to commence the long term testing of these discoveries.

The Andaquies Block located in the north east of the Putumayo Basin has no X Factor and low work commitments of one exploration well by May 2017. The block has multiple proven reservoir targets, six mapped leads targeting both proven and novel plays and unrisked resources of 66MMBO prospects both proven and unproven and sits to the north east of a proven structural play within the Putumayo Basin. The block's exploration environmental license has been granted.

John Wardle, CEO of Amerisur commented:

"This acquisition represents a significant new opportunity for Amerisur and is in line with our strategy to expand the Company's asset base using the low oil price environment to buy assets with significant resource potential at attractive valuations, while expanding our portfolio of opportunities, thus creating greater flexibility and diversity in our production base and forward planning. Through this transaction we are adding three highly prospective assets to our portfolio at a low cost, with significant tax losses and minimal work commitments, while also consolidating our position in the Putumayo basin.  

"The X factors are low or non-existent and the commitments are also low, which will enable us to maintain the discipline of investing in risked capex only what we generate in free cash flow.

"All three assets have exciting exploration potential with multiple plays identified and are ideally positioned to feed into Amerisur's Ecuador-Colombia Interconnector pipeline (OBA) creating further value.

We look forward to beginning the evaluation of the discoveries in the southern part of the Coati block, where we hold 100%, in order to add further reserves and development activity into our portfolio."

Tomas Villamil, CEO of COG Energy commented:

"We are very happy to close this transaction with Amerisur. As new shareholders of Amerisur we look forward to the long term value creation from these assets, which will be facilitated by Amerisur´s abilities to operate efficiently within the region."

An application will be made to the London Stock Exchange for 22,711,494 new ordinary shares of the Company ("Shares") to be admitted to trading on AIM. The Shares will rank pari passu with the Company's existing issued ordinary shares and dealings are expected to commence at 8:00 a.m. on 1 February 2016.

Following the issue of the Shares, the issued ordinary share capital of the Company will comprise a total 1,095,749,509 shares.  No ordinary shares are held in treasury.


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