Amerisur Resources is an independent full-cycle oil and gas company focused on South America, with assets in Colombia and Paraguay. I have a holding in my growth portfolio (epic code: AMER).
Amerisur issued an operations update today, informing the market that they have reactivated a limited production volume from Pad 3N in the Platanillo field. Pad 3 is currently producing around 1,300 BOPD, and the entire field production is currently ~5,030 BOPD.
Operational netback to the Company during early April was US$24 per bbl, with an estimated sales price of US$51, and the volume contribution from Pad-3N is expected to increase operational netback to US$29 per bbl at a sales price of US$55.
Once the interventions of wells on Pads 9 and 5 are completed, field production in May is expected to be around 5,600 BOPD, with an operational netback of US$30 per bbl in that month.
It is worth comparing this detail with their guidance here in February. Their estimate of $34 EBITDA was based on volume of 2.22m barrels of oil (6082 BOPD) a netback of $24.68 and an average sales price of $48/bbl.
So current production is -17.3% below the average guidance for the year, and the netback during early April is -3% above guidance. May's increased production will be -7% below the average guidance, but the netback will, if the average sale price remains at around $55, more than eliminate the production short-fall.
This looks to be good control of the resource by management.
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