A full hand of meetings today make the blog short, if I have further comments on the below or others I will add later. AMER has announced a production update this morning which probably makes a bit of sense about the production concerns that have been doing the rounds. It appears that due to ‘social issues’ ie the Government implementing the crop changes post the peace process it was appropriate to suspend production at the Platanillo field from 10th-28th of July. No oil has been lost and production is already back over 6/- b/d and the company even made some important technical changes during the process. Production through the OBA is back to 5/0/- b/d and AMER are in talks with Petroamazonas to increase export capacity. The company’s target of 7/- + b/d by the end of the year still stands but clearly there will be a modest change to the average in the second half. At 17.5p these shares are excellent value although I seem to be saying that a lot lately, investor interest in the E&P sector is missing but for those hunting long term value this is probably the place to be.
Sound has announced that it has received final approval for the Matarka licence in Eastern Morocco. This approval fulfils one of the conditions required to complete the Company’s acquisition of the interests of Oil & Gas Investment Fund S.A.S (“OGIF”) in Eastern Morocco. Progress is still being made and once the acquisition is complete I expect shareholders will be given a substantial update in early autumn.