Amerisur Resources update on Loto-2

Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, has provided an update on well Loto-2 in the CPO-5 contract area, Colombia.

Well Loto-2 has been drilled to a total depth of 10,320 ft MD, and a liner run and cemented. Two zones within the Mirador formation, L1 and L3 were tested, where electric log analysis indicated the existence of 54ft net pay. L1 tested water and oil with water cut (BS&W) of 96% and 16o API oil and L3 tested water and oil with BS&W of 97% and 10o API oil. Loto-2 has been temporarily suspended pending further analysis of these results.

The well was drilled for a total cost of US$3.98 million, US$1.19 million net to Amerisur/PDSA and testing costs are currently estimated at US$0.69 million net to Amerisur. The operations were completed on time and under budget, at 69% of the planned expenditure, due to excellent operational planning and execution. The Tuscany 109 will now be demobilised while the partners review the well testing data together with the 3D seismic model. A decision on further wells on the Loto structure will be taken in the next few weeks.

The Company and OVL are currently reviewing a number of exciting drilling opportunities within CPO-5 and expect to formalise the future drilling plans before year end.

As a reminder, Amerisur acquired its 30% interest in the CPO-5 block as part of the $6MM acquisition of Petro Dorado South America SA (PDSA), a subsidiary of Petro Dorado Energy Ltd (PDEL). In that contract ONGC Videsh is the Operator and holds a working interest of 70%. As part of the same transaction Amerisur also acquired a 49.5% (non-operated) working interest in the Tacacho contract, located in the Caguan-Putumayo basin (Pacific Stratus 50.5% and Operator) and tax losses of approximately US$57 million, representing a potential tax benefit to the Company of up to approximately US$20 million.

John Wardle, CEO of Amerisur commented: "Initial analysis of the Loto-2 well indicates there may be an issue with the mobility of the oil in place, coupled with the usual strong Llanos aquifer, and together with our partner ONGC Videsh we intend to further study the detailed test results with the objective of defining whether this accumulation can produce economically through the use of advanced techniques. As part of these studies, the partners are considering a further test of well Loto-1. The presence of heavy oil in the Llanos basin is wide spread, given the diversity of sourcing and migration mechanisms, which are the basis of the basin's prodigious potential. The block is on trend with a number of important Llanos light and medium oil discoveries and we remain convinced of the high potential within the structures already identified and the wider exploration opportunities held within the contract. It is very encouraging that we have been able to develop the drilling operations in such an efficient and cost effective way. This benefit will enable comprehensive exploration within CPO-5 at very reasonable cost."

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/exploration/06112015/amerisur-resources-update-on-loto-2-1565/