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Amerisur Resources: update on Pintadillo-1 discovery well

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Oilfield Technology,

The water cut is less than 1% and is decreasing. An interval of 9 ft was perforated within the 15 ft of net pay identified in the T sand. Oil produced is being evacuated through the OBA pipeline with a consequent increase in the company's production.

In line with company standard practice, the well will be observed at these stable parameters for at least a further three days, after which a downhole pump may be run to provide some lift to the well to optimise flow parameters.

The company plans to re-map the T and U sand targets across this part of block to evaluate the size of the discovery and will make a decision as to future drilling options from the Pintadillo pad thereafter.

Currently no T-sand or U-sand reserves are attributed to this part of the block. Once a production history is established management expects reserves to be attributed.

John Wardle, CEO of Amerisur said:

"This is an exciting and very positive result from Pintadillo-1, ahead of what we had expected. Indeed, at current choked production levels, the well will pay back in under a year. The strong natural flow from the well, together with a different oil-water contact indicates a separate structure compared to the T-sand production in the southern part of the block, which further diversifies our production base.

"There are currently no reserves of any class booked for the U and T-sands in this area of the block. We will now work to evaluate the size of the discovery while continuing to produce the well, which is being commercialised via our normal OBA route. Once that evaluation is complete we will make a decision as to options for drilling further wells from this Pintadillo pad with the objective of developing the U and T-sand discoveries."

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