StockMarketWire.com - Amerisur Resources posted a sharp jump in revenue and profits supported by higher production and increased oil prices.

For 2018, adjusted earnings (EBITDA) increased by 72% to $34.0m, and revenue grew 28% to $108.2m.

The results were driven by production growth and higher oil prices; 2018 average production was up 10% to 5,356 barrels of oil per day and oil prices averaged a $64.8 a barrel selling price, compared with $50 a barrel in 2017.

Production throughput through the OBA pipeline averaged 4,113 bopd in the period, with a peak of 6,540 bopd, the company said.

1P reserves were up 27.8% to 17.82 mmbo and 2P reserves were up 23.6% to 25.59 mmbo.

Production in the first quarter of the current year averaged 4,600 bopd, the company said.

The company said its work programme was fully-funded work programme, with up to ten exploration and development wells planned across CPO-5 and the Putumayo targeting gross prospective resources of 145 mmbo.

'We increased reserves significantly; we entered into a farm-out agreement with Oxy in the Putumayo, which will deliver a $93.25m exploration and appraisal campaign; we made a discovery at Indico-1X on CPO-5 from which we are now producing, taking the number of producing fields to three; we made a profit and generated free cash flow; and we exited the year in a strong financial position with $44.1 million of cash and no debt,' said Giles Clarke, Chairman of Amerisur.

'The Board looks forward to 2019 full of confidence. Production is growing and we have a fully-funded work programme of up to ten wells across CPO-5 in the Llanos Basin and the Putumayo, targeting 145 MMBO of resources'





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