Amerisur well positioned for growth

But the reserves revision, which followed an independent report by Petrotech Engineering, is more significant. It was based partly on poor initial production from the Platanillo-15 and -16 wells, which effectively reduced the volume of oil Amerisur is expected to recover within Petrotech's reserve model. The reserves were also pared back by management’s decision to cut drilling activity so that capital expenditure is matched by cashflows in the new lower oil price environment. Amerisur is confident that this "technical" revision can be reversed once full production is re-established following the completion of the Ecuador pipeline project in the second half of the year.

It's worth noting that average full-year production - though "constrained" last year - was still up by a third at 6,242 barrels of oil per day (bopd). Despite its reduced oil price assumptions, Amerisur has maintained guidance for the current year at 8,200 bopd.