The Platanillo-11 well has added 1,100 barrels of oil per day (bopd) to bring total output from the field to 7,100 bopd. As Investec analyst Brian Gallagher points out, in 50 days, Amerisur has effectively increased Platanillo production from ‘over 4,000’to the current level, a 77.5% rise in volumes.
The company is working to address logistical issues which prevent Platanillo from producing at its estimated potential of 8,500 bopd. At present oil is trucked to various Colombian pipelines but according to Investec, which has a 'buy' recommendation on the stock and a target price of 71p, the key 64,000 bopd Trans Andean pipeline is constrained at 24,000 bopd due to bottlenecks at its unloading facilities.
Upgrade works to these facilities are expected to complete in the near-term and this could allow the group to increase trucked production to 10,000 bopd. Also a new pipeline is expected to become operational in July, further increasing capacity, and there are plans to work on an export route through Ecuador, though Investec does not expect these to bear fruit until next year at the earliest.
Drilling results from Platanillo have been excellent with a 100% success rate from the seven new wells and reworking of two historic wells which have constituted Amerisur’s work on the field.
The next well in its programme, Platanillo-12, is in the process of being drilled. This progress has been rewarded by the market – the shares gaining 86.4% in the last two years.