Amerisur in an update this morning provides positive news from Chiritza where the re-pumping station is progressing ahead of schedule and on budget. The station is expected to be commissioned in September with access to a minimum daily carrying capacity of 9,000 bopd through the RODA system. As mentioned by me recently the Platanillo 22 workover has been successful with the cause being a severe degradation of the cement sheath. Once sorted the well was re completed is now producing approximately 360 bopd at a low pump rate with water cut declining. Expect careful treatment of Plat 22 as pump is increased and to manage the well judiciously .
Pintadillo-1 will use Rig D-10 once this work is completed and a further announcement will be made at spud, I’m not expecting any delay.
Another upbeat report from PPC this morning where progress is continuing apace at Puesto Flores. The three well drilling programme is confirmed as ready to start in September and is funded from cash flow and expect to be increasing oil production by a minimum of 600 bopd.
2019 should see further development wells and two exploration wells which complement development drilling at Puesto Guardian and in Paraguay. Current production is 2,700 boepd and Group free positive cash flows from operations now running in excess of$2m per month. Upcoming results are expected to reflect this strong operational performance with more to come in the second half. Accordingly these shares are significantly undervalued, the market has not picked up on recent operational success.
A brief comment on RockRose this morning as they announce the acquisition of a 20.43% interest in the Arran field in the UK North Sea. The reason for brevity is that I will need to talk to the company as there is little or no detail with regards to costs etc in the statement although I am sure that it will have good economics. It adds 3,500 b/d of initial production and5.7m mmboe of 2P reserves to RockRose, more tomorrow .