Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

AIM-listed South America-focused oiler <a href="https://www.smartkarma.com/entities/amerisur-resources-plc" target="_blank" data-smartkarma-citation="entities:23299:1" rel="noopener">Amerisur Resources (AMER LN)</a><a href="https://polaris.brighterir.com/public/amerisur_resources_plc/news/rns/story/xz2yeox" target="_blank" rel="noopener">announced</a> a strategic review, including a formal sale process (FSP) on the 19 July, following the receipt of interest in the company.On the 22 July, AMER <a href="https://polaris.brighterir.com/public/amerisur_resources_plc/news/rns/story/w3359dw" target="_blank" rel="noopener">announced</a> a possible offer from <a href="https://www.smartkarma.com/entities/etablissements-maurel-et-prom" target="_blank" data-smartkarma-citation="entities:24885:1" rel="noopener">Etablissements Maurel Et Prom (MAU FP)</a> for 17.5 pence, comprising 12.5 pence in cash and 4.5 pence in MAU shares.Following updates on the <a href="https://polaris.brighterir.com/public/amerisur_resources_plc/news/rns/story/rn6m6kw" target="_blank" rel="noopener">9 August</a> and <a href="https://polaris.brighterir.com/public/amerisur_resources_plc/news/rns/story/wk0j91x" target="_blank" rel="noopener">11 October</a>, AMER <a href="https://polaris.brighterir.com/public/amerisur_resources_plc/news/rns/story/w33e0dw" target="_blank" rel="noopener">announced</a> on the 15 November a recommended cash acquisition from <a href="https://www.smartkarma.com/entities/geopark-ltd" target="_blank" data-smartkarma-citation="entities:27360:1" rel="noopener">Geopark Ltd (GPRK US)</a> of 19.21 pence, in cash, for all shares.The Offer price represents a 58.8% premium to the undisturbed price on the 8 July.A condition to the Scheme requires 75% of AMER shareholders approve the transaction.AMER's directors have unanimously recommended the Offer to its shareholders. Directors holding 4.9% of shares out have given an irrevocable to vote in favour of the Scheme. An additional 18.9% (from Canaccord Genuity Limited and Michinoko Limited) have also provided irrevocable undertakings, taking the irrevocable total to 23.8%.Faced with various interested parties, AMER undertook a relatively lengthy FSP, arriving at an all-cash Offer - 13% above MAU's cash/scrip bid - which has the support of AMER's board and the backing of two major shareholders.Pricing appears fair and the acquisition provides an attractive bolt-on for Geoparks' existing adjacent assets. We recommend getting involved at 19 pence or below.

AIM-listed South America-focused oiler Amerisur Resources (AMER LN)announced a strategic review, including a formal sale process (FSP) on the 19 July, following the receipt of interest in the company.On the 22 July, AMER announced a possible offer from Etablissements Maurel Et Prom (MAU FP) for 17.5 pence, comprising 12.5 pence in cash and 4.5 pence in MAU shares.Following updates on the 9 August and 11 October, AMER announced on the 15 November a recommended cash acquisition from Geopark Ltd (GPRK US) of 19.21 pence, in cash, for all shares.The Offer price represents a 58.8% premium to the undisturbed price on the 8 July.A condition to the Scheme requires 75% of AMER shareholders approve the transaction.AMER's directors have unanimously recommended the Offer to its shareholders. Directors holding 4.9% of shares out have given an irrevocable to vote in favour of the Scheme. An additional 18.9% (from Canaccord Genuity Limited and Michinoko Limited) have also provided irrevocable undertakings, taking the irrevocable total to 23.8%.Faced with various interested parties, AMER undertook a relatively lengthy FSP, arriving at an all-cash Offer - 13% above MAU's cash/scrip bid - which has the support of AMER's board and the backing of two major shareholders.Pricing appears fair and the acquisition provides an attractive bolt-on for Geoparks' existing adjacent assets. We recommend getting involved at 19 pence or below.

In A Light, Sweet Spot As Geopark Bids For Amerisur

Global Cross-Asset Energy Analyst, VAC Investments

Aaditya Chintalapati, CFA

Global Cross-Asset Energy Analyst

VAC Investments

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/25655" target="_blank" data-smartkarma-citation="entities:25655:1">Frontera Energy (FEC CN)</a>'s Acorazado exploration well (Llanos 25, Colombia) discovered significant oil &amp; gas pay, albeit achieving lower than expected flow rates and uncertain commerciality. A successful well was expected to help address investor concern around Frontera's resource upside and production growth potential. However, given the mixed results at the well, we believe management will now need to focus on building a robust hopper of exploration prospects for 2019, via licensing rounds and acquisitions. Crucially, with the company generating c.US$300m of FCF per year, we believe Frontera is well placed for accretive resource acquisitions in the region. We see c.50% upside to our C$27/share price target, which is based on our Base Case NAV.

Frontera Energy (FEC CN)'s Acorazado exploration well (Llanos 25, Colombia) discovered significant oil &amp; gas pay, albeit achieving lower than expected flow rates and uncertain commerciality. A successful well was expected to help address investor concern around Frontera's resource upside and production growth potential. However, given the mixed results at the well, we believe management will now need to focus on building a robust hopper of exploration prospects for 2019, via licensing rounds and acquisitions. Crucially, with the company generating c.US$300m of FCF per year, we believe Frontera is well placed for accretive resource acquisitions in the region. We see c.50% upside to our C$27/share price target, which is based on our Base Case NAV.

Frontera Energy (FEC CN): Mixed Results at Acorazado Reiterate Investor Concerns

Colombia

Geopark Limited is an oil and gas exploration and production company. The Company has operating and production properties in Chile, Colombia, Brazil and Argentina.

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Geopark Ltd (GPRK US)

In A Light, Sweet Spot As Geopark Bids For Amerisur

AIM-listed South America-focused oiler Amerisur Resources (AMER LN)announced a strategic review, including a formal sale process (FSP) on the 19...

David Blennerhassett

Frontera Energy (FEC CN): Mixed Results at Acorazado Reiterate Investor Concerns

Frontera Energy (FEC CN)'s Acorazado exploration well (Llanos 25, Colombia) discovered significant oil & gas pay, albeit achieving lower than...

Aaditya Chintalapati, CFA

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