StockMarketWire.com - Oil and gas producer and explorer Amerisur Resources said short-term testing revealed that its Indico-1 well flowed at 4,530 barrels a day.

The oil to surface flowed at a 35.9 degree API oil to surface from the lower sands of the Une formation, with a final flow rate of 4,530 barrels of fluid per day, the company confirmed. 'The confirmation of no oil water contact within the drilled reservoir at Indico-1 and the initial flow rates on short-term testing are very encouraging indeed,' the company said.

Calao-1, targeting a structure alongside Indico to the southwest, towards the Aguila structure was expected to spud in January 2019, with estimates of potential resources of between 2 and 7 million barrels of oil.

Pavo Real-1 would target a similar structure adjoining Indico to the northeast, with estimates of potential resources in the range of 2 to 23 million barrels of oil, the company said.

But potential resources may be significantly higher at both Calao-1 and Pavo Real-1 owing to the potential of combination trapping, the company added.

Following these wells, a further two appraisal wells would be drilled in the Indico structure from the Indico pad, with the objective of refining resources and reserves estimates, Amerisur confirmed.

While the Sol-1 was 'drill-ready,' the company said it was considering with its partner whether to drill it after spudding Calao-1 and Pavo Real-1, or opt for a second drilling rig in the short term.

'We have no doubt that further flow improvements may be achieved during long-term testing, as well as improvements to surface facilities in order to optimise production from the well. We are now evaluating the resource potential within the Indico structure, with the help of the data acquired to date and of course utilising additional data that will be acquired under the continuing short-term testing and subsequent long-term testing,' said John Wardle, CEO of Amerisur.

'The initial flow data also support our view of the importance of this play, not just at Indico but also in the surrounding area, extending down to Mariposa and up to the Aguila and then Sol structures'.


At 8:57am: [LON:AMER] Amerisur Resources PLC share price was +1.41p at 16.77p



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