StockMarketWire.com - Amerisur Resources said Monday it had discovered oil at the Indico-1 well on the CPO-5 block.

The well was drilled to target depth of 10,604 feet and had encountered the targeted lower sands of the une formation.

The package was the same formation which held the 120 feet oil column discovered at Mariposa, some 6.5 kilometres to the North West of Indico-1, the company said.

The Mariposa well had produced at a stable rate of approximately 3,200 barrels of oil per day in natural flow from 10 feet of perforations near the top of the 120 feet oil column for over a year, during which time it had produced over 1.2m barrels of oil with no significant water cut, which remained at 0.05%, the company added.

The next steps for the well operations included the acquisition of further wireline logging data, including pressures and samples across the reservoir, the company said. A 7-inch production liner would then be run and cemented followed by short term testing of the well.

Once operations were complete at Indico-1, the rig would move to drill Sol-1, the company said. 'In our view the principal pre-drill risk in this well was the presence of significant sand development in the Une formation. The results of the drilling have significantly exceeded our expectations in this respect and of course the very significant oil column encountered means we will have to review, with our partner ONGC Videsh, the resources associated with the Indico structure,' said John Wardle, CEO of Amerisur . 'The fact that no OWC was encountered is also very positive for the eventual size of recoverable reserves within the structure. Naturally, given this result, the Company and our partner will be reviewing options for further appraisal wells into the Indico structure in the short term, which will be required to further extend and define the resources encountered.' 'Our impression now is that we are developing an important play fairway within the LS3 unit of our large CPO-5 block, which will be further explored with the drilling of Sol-1 post short-term testing of Indico-1.'

At 8:48am: [LON:AMER] Amerisur Resources PLC share price was +2.06p at 13.86p



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