Amerisur Platanillo-15 update

Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay. I have a holding in my growth portfolio (epic code: AMER).

Amerisur provided an update on their Platanillo-15 field. Following their completion of Platanillo-17 the Serinco D-10 rig was moved from Platform 3N to Platform 9S in order to drill a further 3 wells.

Platanillo-15 was spudded on 23^rd April 2014 and will be drilled directionally to a reservoir target approximately 1,602ft south-west of the surface location. The total depth of the well will be approximately 8,589ft MD with a maximum inclination of 17°. The Company expects log data from this well by the end of May.

When the three wells at Platform 9S are completed and placed on production the Company intends to shift drilling operations to Platform 5S from which a further 2 wells will be drilled. At that point the Platanillo field South and Central Lobes will benefit from 17 new wells and 3 side-tracks which the Company considers, on success, will support a prudent plateau oil rate in the absence of export constraints of some 12,000 BOPD.

This production estimate compares to an average BOPD in the last financial year of 4,730 that produced sales of $169.2m, earnings of $46.8m and EPS of $0.044.  So if 12,000 BOPD were achievable by 2015 then we might expect sales of $429.2m, earnings of $200m and an EPS of $0.188.  That would place the shares on their current price of 55p at a prospective P/E valuation of less than 5.  If they can resolve the transportation problems soon, this looks like an interesting value proposition.