29 June 2015

Amerisur Resources Plc

Acquisition of Petrodorado South America SA

Amerisur Resources Plc ("Amerisur" or the "Company"), the oil and gas producer and explorer focused on South America, is pleased to announce the acquisition of Petro Dorado South America SA (PDSA), a subsidiary of Petro Dorado Energy Ltd (PDEL).

The acquisition has been agreed under the following terms:

·      Payment to PDEL of a total of US$6MM in three instalments, US$3MM upon closing, and two further instalments of US$1.5 MM at three-monthly intervals. This consideration may be paid in cash or in Amerisur stock, based on the 5 day VWAP preceding the due date for each instalment, at the election of Amerisur. Amerisur has elected to issue stock for the first instalment and will issue 5,148,447 new Ordinary Shares based on a 5 day VWAP of 37.0214p.

·     The provision of a 2.5% net royalty to PDEL on production arising from the assets acquired. This royalty is post any overriding government royalties.

·      Payment by Amerisur of 50% of PDSA net costs (estimated at US$2MM net) for the ongoing 405km² 3D seismic programme in Block CPO-5. Amerisur will reimburse PDEL for the remaining 50% of those seismic costs from a further 2.5% royalty until those costs have been recovered.

The assets acquired through this transaction are:

·      30% (non-operated) working interest in the CPO-5 contract, located in the Llanos basin. ONGC Videsh Ltd holds a 70% working interest and is the Operator.

·     49.5% (non-operated) working interest in the Tacacho contract, located in the Caguan-Putumayo basin. Pacific Stratus Energy holds 50.5% and is the Operator.

In addition, PDSA carries current tax losses of approximately US$57MM, representing a potential tax benefit to the Company of up to approximately US$20MM.

CPO-5 is an Exploration and Production Contract with an 8% sliding scale royalties and a 23% X Factor. It covers 198,000Ha and is located to the south of block Llanos 34 and to the east of the Corcel fields. The block includes the evaluation area related to the Loto-1 oil discovery. That well was drilled in 2013 and tested oil in the Mirador formation during a short test however lack of zonal isolation prevented performance of a long term test. Core and electric log data indicate 61ft of net pay within the Mirador. 405km² of new 3D data is currently being acquired in the north western sector of the block, adjacent to the Guatiquia and Akira discoveries, and covering the entirety of the Loto structure. A further two wells within the north western sector of the block, Kamal and Metica also tested oil, and these structures are also covered by the new 3D data. Amerisur interpretation of the existing data indicates potential oil in place for the Loto structure of approximately 44.46MMBO. Loto-2, which will be operated by PDSA (Amerisur) will be spudded in July 2015. The cost of this well is expected to be US$6.5MM (gross). In the event of commercial success in Loto-2, a further two wells may be drilled on a back-to-back basis. The contract is currently in Phase 2, where exploration commitments are 250km² of 3D seismic and one exploration well.

Tacacho is an Exploration and Production contract with an 8% sliding scale royalties and a 0% X Factor, covering 238,000Ha in the eastern Caguan-Putumayo basin. This is a heavy oil exploration play, supported by regional studies which indicate a continuation of the heavy oil trend extending from the eastern llanos basin through to the ITT field complex in the eastern Oriente basin of Ecuador. Additionally, the well Solita-1, drilled nearby by Texaco in 1948 indicated the presence of hydrocarbons in the Pepino formation. Large structures have been defined on existing 2D seismic, with closures at both the base and top of the Pepino formation. The contract is currently in Phase 1, where the exploration commitment is 480km of 2D seismic, with an estimated cost of US$9MM (gross). The phase is currently suspended while social consultations and security planning is performed.

A presentation giving further details of the new assets and activities in these blocks will be available on the Company website at www.amerisurresources.com.

John Wardle, CEO of Amerisur commented:

"This acquisition creates an important new opportunity set for Amerisur. Through this transaction we have accessed prime Llanos acreage in the form of the CPO-5 block, with near term drilling on a proven discovery at the Loto structure, and considerable further upside for light and medium oil within the block, which is on trend with the most important recent discoveries in the basin. Amerisur, through its subsidiary PDSA and by way of an Engineering, Procurement and Construction (EPC) agreement with ONGC Videsh Ltd will operate the drilling, testing and LTT of the Loto wells, bringing our operational expertise to this discovery to ensure efficient operations and rapid cash flow generation. The Tacacho block is also very attractive, being located within the Caguan-Putumayo heavy oil belt and demonstrating large structures with exposure to several play types, and as such is an ideal complement to our strong Putumayo portfolio made up of the Platanillo, Put-12 and Put-30 blocks."

Giles Clarke, Chairman of Amerisur commented:

"We are very pleased to have closed this important strategic acquisition on such favourable economic terms and to commence a relationship with ONGC Videsh Limited, based in a country we know extremely well. The CPO-5 interest will be our first entry into the Llanos basin, where our management team have had considerable success in the past, and where we see strong potential for future growth, beginning with the appraisal and development of the Loto discovery. The near term production from this asset will generate significant cash flows and diversify our production base, giving greater security in our financial projections and considerable upside to both net production volumes and reserves.  The Tacacho block also has very impressive potential, and makes an excellent fit within our Putumayo strategy."

ENDS

Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 29 years' experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

ENQUIRIES: