Amerisur Resources (AMER:AIM)63.25p

Gain to date: 50.6%

Colombian oil producer Amerisur Resources (AMER:AIM) is enjoying almost unparalleled success on its Platanillo oil field - announcing the fourteenth successful well out of 14 (19 Jun).

The well has already been placed on commercial production and this incremental catalyst helps last November’s 42p trade (Plays, Shares, 7 Nov ‘13) advance further. Perhaps of greater significance is the indication that an export pipeline project to Ecuador remains on track to come on stream in the second half of the year.

Infrastructure limits constrain production - which currently totals 6,700 barrels of oil per day trucked to various locations in Colombia. Tapping the Ecuadorian system would lift production constraints, reduce operating costs and thereby result in higher margin sales of the company’s crude. Results from a well aimed at delineating the potential in a new part of Platanillo are expected before the end of July.

Ongoing drilling by peer President Energy (PPC:AIM) in Paraguay could offer a tangential benefit given Amerisur’s own acreage in the country. Paraguay’s oil potential is almost entirely untested but initial results from President’s first well in the region are expected late August.

Amerisur has further to run. (TS)