One to watch: Amerisur Resources
The company plans to grow production from 550bbl/d to 5,000bbl/d by the end of the year from an existing oil field onshore southern Colombia. In addition, recently acquired 3D seismic on the key Platanillo Block has identified almost 100mmbbls of prospective resources, highlighting the potential for long-term production growth. We would recommend buying the stock ahead of the start of a four-to-six well drilling programme starting in July once environmental approvals are secured later this month.
Colombia may appear an unlikely location to look for a low-risk investment opportunity. However, the country's security issues have improved markedly and the oil sector has enjoyed a history of fiscal stability with no retrospective tax increases, unlike the UK. In addition, the government in Colombia is focused on growing oil production in the country and views foreign investment as a key part of achieving this goal.
Amerisur Resources
27.25p +3.25p
Scotsman says BUY
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Hide Ad• Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.
BROKER SNAPS
Brewin Dolphin
166.1p +0.4p
Broker says HOLD
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SuperGroup
1,021p -19p
Broker says BUY
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