Amerisur swings to profit after rise in prices and production

Oil and gas exploration and production company Amerisur Resources swung back to a profit for the six months ended 30 June after the firm’s revenues almost doubled during the period.

The company reported a profit after tax of $10.8m on Thursday, up from a loss of $2.3m over the same period last year, following a 93% increase in revenues to $67.9m as the company benefitted from a rise in oil prices.

Amerisur’s cash and cash equivalents increased to $49.3m from $29m at the same point last year.

The average realised sales prices for the half year period were up 36% to $64.2 per barrel and average daily production rose 33.2% to 5,959 barrels a day in the first half of the year.

Giles Clarke, chairman of Amerisur, said: "The first half of 2018 has been a period of significant revenue growth for Amerisur, with our low-cost production and excellent netbacks delivering strong cash generation and profitability. As the owner and operator of the strategic OBA pipeline, we continue to deliver highly competitive operating margins."

The company has also increased the minimum guaranteed carrying capacity of the OBA pipeline in Colombia and Ecuador.

Clarke added that the AIM traded company will aim to expand production levels from its recently existed reserves and execute its drilling plan, having recently spudded the Pintadillo-1 well, the first of three upcoming fully-funded wells.

In a research note, broker Shore Capital said: "With average daily production of 5,959bopd reported for the first half, we continue to highlight Amerisur’s very active drilling programme and maintain a high level of confidence in this quality, production-led Colombian operator."

Amerisur’s shares were up 2.70% at 15.20p at 0924 BST.