Amerisur Resources PLC – Final Results

Amerisur Resources Plc final results for the year ended 31 December 2018 – Unlocking Potential, Strengthening Value.

Highlights:

Financial

• Strong financial performance in 2018 driven by production growth and higher oil prices, with netbacks of $43/bbl (average realised oil price of $64.8/bbl)
• Significant revenue growth of 28% to $108.2m (2017: $84.7m)
• Adjusted EBITDA increased by 72% to $34.0m (2017: $19.8m)
• Robust cash position of $44.1m* and zero debt (2017: $41.3m)
• Strong growth in operating profit to $11.0m (2017: $0.3m)

*Includes restricted cash

Production and OBA

• 2018 average production increased 10% to 5,356 BOPD (100% oil)
• FY18 OBA throughput average of 4,113 BOPD, with maximum throughput of 6,540 BOPD
• Average cash transport costs per barrel reduced further to $3.5 (2017: $3.9)
• Delivery of Chiritza pumping station increasing Amerisur’s capacity right within the Petroamazonas pipeline system to a minimum of 9,000 BOPD
• Continued diversification of production base from two to three fields following further exploration success at CPO-5
• 1P reserves up 27.8% to 17.82 MMBO and 2P reserves up 23.6% to 25.59 MMBO
• Optimisation of production at Platanillo continued post year end, with further workovers planned across Platanillo
• Q1 2019 production averaged 4,600 BOPD

Exploration and appraisal

• Transformational farm-out deal signed with Occidental Andina LLC (“Oxy”), with Oxy delivering a $93.25m exploration and appraisal programme in the Putumayo, including five carried wells
• Exploration success at Indico on CPO-5 in December adding significant reserves and production
• Acquired 100% Operated working interest in the Putumayo 14 block
• Post period end, acquired the remaining 50% working interest in Putumayo 8 for $19.1m

Corporate

• Board strengthened with the appointment of Elodie Grant Goodey as an independent Non-executive Director with Corporate Social Responsibility experience

Outlook

• Fully-funded work programme of around $35m, with up to ten exploration and development wells planned across CPO-5 and the Putumayo targeting gross prospective resources of 145 MMBO
• Wholly owned OBA offers further growth potential with the export of third-party crude expected to begin in the coming months   

Giles Clarke, Chairman of Amerisur, commented:

“2018 was a year of great achievement for Amerisur. We increased reserves significantly; we entered into a farm-out agreement with Oxy in the Putumayo, which will deliver a $93.25m exploration and appraisal campaign; we made a discovery at Indico-1X on CPO-5 from which we are now producing, taking the number of producing fields to three; we made a profit and generated free cash flow; and we exited the year in a strong financial position with $44.1 million of cash and no debt.

“The Board looks forward to 2019 full of confidence. Production is growing and we have a fully-funded work programme of up to ten wells across CPO-5 in the Llanos Basin and the Putumayo, targeting 145 MMBO of resources.”