Mindful, perhaps, of the mixed news contained within, Amerisur Resources (AMER) decided this week to split an update to the market into three parts.
IC TIP:
Buy
at
13.5p
First came news that an ongoing workover programme led to a 4 per cent drop in output to 6,477 barrels of oil per day (bopd) in March. Also trending in the wrong direction is the resource base. Proven reserves declined 15 per cent to 12.84m barrels of oil (mmb) during the year, emphasising the need for the South American driller to make the most of its aggressive drilling programme. Following the approval of a modification to its drilling licence, that programme will soon turn to the Pintadillo-1 well, which is targeting P50 resources of 11.44mmb.
