You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Amerisur Resources

0
Written by: YourMoney.com
23/04/2018
Helal Miah, investment research analyst at The Share Centre, picks oil and gas exploration and production company, Amerisur Resources, as stock of the week.

This week’s stock of the week is Amerisur Resources, an independent full cycle oil and gas company focused on South America. Listed on the AIM market of the London Stock Exchange, Amerisur recently entered into a $35m working capital facility with Shell Western Supply and Trading limited and it seems it is one of the market’s most undervalued small-cap oil stocks.

Indeed, the company has reported revenue growth of 96% to $92.5, up nearly 100% year-on-year due to higher oil prices and increased production of 58%. Growing production and improving oil prices resulted in a strong cash position of $41.3m with zero debt, and low-cost production generated significant cash flow from operations.

The firm currently wholly owns the OBA oil transfer line into Ecuador and has plans to expand its exploration portfolio; it holds a strong presence in the unexplored Putumayo region of Columbia for which 14 fully funded exploration and development wells are planned for 2018.

Given the unrest involved with the FARC rebels in the past, the Putumayo region suffered from a lack of investment and development. Now with a peace process in place, the region and Amerisur should benefit from the government’s commitment to a large increase in rural investment spending.

The outlook for 2018 appears positive and sustainable growth is expected. If all commitments are met, Amerisur is in a very strong position. This is a small oil and gas exploration firm operating in a potentially unstable region and thus represents a high risk investment, however, we maintain our recommendation of Amerisur as a ‘buy’ for growth-seeking investors willing to accept a higher level of risk.

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape for summer, and moving your cash savings to a higher paying deal is ...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Retirees anything but reckless with pension pots

Fears pensioners would go on spending sprees following the introduction of pension freedoms have been allayed as retirees show they're...

Close