Amerisur Resources PLC (LON:AMER) shares were on the back foot in Tuesday’s early deals after the South America-focused oiler told investors that a work-over would be required to recover production capacity in the Platanillo-22 well in Colombia.
Platanillo-22 came online in April last year, but, output has declined following a pump change earlier this year. An organic treatment was undertaken in the well, though it was only partially successful.
A technical review has since taken place, and, the company has now decided to launch a well work-over programme to ‘permanently resolve’ the production decline.
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To conduct the work-over the company has had to take a rig out of the separate exploration and development programme, because there’s limited rig availability in the area.
Operations are underway at Platanillo-22 and the forward programme is expected to involve an isolation and re-perforation of the reservoir interval, which is slated to take around 10 days to execute.
Elsewhere, work continues to advance other wells such as Pintadillo-1 (which will now follow the Platanillo-22 programme once the rig is returned), and proposed wells in the CPO-5 block and PUT-8 block which are due to spud during the third quarter.
Amerisur also noted that work is advancing at the Chiritza re-pumping station project where operations aim to increase minimum transport capacity.
On AIM, Amerisur shares were down 1.3% changing hands at 15p each.