Amerisur revenue slips and loss widens in first half

The AIM-traded firm reported operating cash burn for the period of $0.4m, against cash flow of $8.1m a year ago, though it did see its non-cash amortisation charge reduced to $4.4m as a result of a technical increase in reserves.

Amerisur’s operating loss for the period was $7.2m, widening from $6.5m, and its loss before tax reached $6.8m, compared with a loss of $5.8m a year ago.

The company’s cash position at period end was $56.1m, with no debt.

“We have made great strides in the first half, further diversifying our portfolio within the Putumayo region of Colombia, with activity levels across many blocks increasing as we deploy the capital raised in March,” said chairman Giles Clarke.

“I am particularly pleased the OBA pipeline is now fully completed and undergoing final commissioning checks before entering operation within days and as a result we are once again drilling wells on the Platanillo field to increase reserves and production and leverage the significantly reduced opex per barrel using the pipeline for oil evacuation.

“We would like to thank shareholders for their patience in what has been an exceptionally complex undertaking.”

Clarke said Amerisur now has a cluster of assets around the OBA pipeline including the Platanillo field, Put-8 to the West of Platanillo and Put-12 to the East.

“Following our successful placing of approximately $35m in March, we have the capital to invest in drilling new wells at Platanillo, to increase both reserves and production and to move forward our acreage elsewhere in the portfolio such that Amerisur anticipates producing commercially from more than one oil field during 2017.

“Production in the second half is expected to ramp up - whilst preserving the integrity of the reservoir - and we are targeting a 2016 exit rate of 7,200 BOPD.”

At 1629 BST, its shares were flat after an afternoon of choppy trading at 23.5p.