What a cracking update to the market! If only others could take a lead from Amerisur and concentrate on building their core interested before diversifying elsewhere. (PLEASE TAKE NOTE PETE LANDAU)
I missed Amer when they were under 40p less than a year ago and have watched them since - they moved up to almost 60p earlier in the year but have drifted back to the low 40's recently. The chance to buy at 42p was last week on the day of the announcement that they were temporarily shutting in production as this had no real long term impact, but I had no spare funds and kicked myself. This looks like a company that will continue to grow over the next 12 months - their results suggest an increase in reserves and production well over 10,000 bopd by next year.
Ivestec today reiterated a "buy" with target price raised from 71p to 73p.
One to watch and look out for the dips in my opinion.
"Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, announces results for the six months ended 30 June 2013 (the "Period").
· Revenue US$64.4m (H1 2012: US$6.0m)
· Profit before tax US$29.1m (H1 2012: US$0.4m)
· Cash position at period end US$40.4m (2011: US$11.2m), all H2 2013 and 2014 commitments and planned programmes fully funded
The first half of 2013 has seen a continuation of the very successful Platanillo drilling with seven new wells, three of which were side track wells on top of the four new wells drilled in the Platanillo block in 2012. The results of that programme have been very encouraging as we continue to delineate the size of the oil field and as we have considerably de-risked the middle sector of the block which to date remains unappraised. The drilling results have been at the top end of management's estimates with our 100% success rate in Platanillo still standing.
Production in the first half was 672,533 barrels of oil, or 3,715 BOPD, with significant momentum of production growth with the new wells coming on stream as we go into the second half.
Following receipt of an independent reserves report as at 31 December 2012 undertaken by Petrotech Engineering Ltd using the standards set by the Oil and Gas Reserves Committee of the Society of Petroleum Engineers, the Company reported that Platanillo field 2P reserves more than tripled from 7.7 to 29.9 MMBO. Additionally the independent assessor calculated 3P reserves at 46 MMBO. Importantly, the upgrade came following just four of the Platanillo wells and the Board expects a significant uplift in 2P and 3P reserves when this exercise is repeated at the year end and announced in March 2014.
In country, John Wardle the Company's CEO, has pulled together a first rate operational team which has worked tirelessly to deliver the results. This work has been undertaken professionally, efficiently and safely and I congratulate them on their hard work, attitude and importantly, their engagement with the local communities."