Amerisur Resources is exploring for oil and gas in South America, currently in Colombia and later it plans to exploit its licences in Paraguay. It has a new Board of Directors and following a recent Placing at 6p (250m shares) sufficient cash to see through its current drilling plans and carry out some further corporate asset improvement opportunities.

Valuation of Amerisur Resources : 'Rule of Thumb' based on c.800m shares and using 10% DCF on oil at $70/barrel is 0.75p on the sp for every 1m barrels (CHP's share) that is proved in the ground.

Amerisur (formerly Chaco Resources) now has two exploration blocks in Colombia which it is currently evaluating and preparing to drill, one of these in the last quarter of 2007. It has also applied for further blocks in Colombia which are also believed to offer near term production. It also has three substantial areas in Paraguay and is awaiting news on a fourth. The next six months (May-November 2008) should see a steady news flow as it establishes the companys transformation from being an exploration company to becoming a significant oil production company. Set out below are some of the milestones which should produce announcements and have a positive effect on the share price. Any potential reserves are quoted in recoverable oil assets.



Platinillo, Colombia :

100% interest in a field currently assessed at holding 38.1m barrels of light sweet crude oil. Previously this a well flowed at 533 b/d before it was capped.Modern extraction methods may achieve up to double this output/well. Drilling completed for assessment and details of reserve figures and resumption of production daily figures awaited at Dec.2009. (Some guessestimates suggest the field might contain as much as 70m-100m barrels.)

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Tigra/Fenix block

100%% Further 3D seismic is completed; previous drilling has resulted in 30,000 barrels of oil from this block. Other blocks nearby in the Magdalena basin have also produced well. Drilled 11/2009; optimistic RNS (17 leads to follow)but reserve figures awaited

RNS :Expect further news on this block imminently and maybe a JV or other arrangement to speed up the timescale to production



Additional blocks to be announced

New local management team, in particular the CEO, is reputed to have some excellent contacts which will bring some high quality blocks to Amerisur in the coming months.

Curupayty Block, Paraguay :

1.39m hectares in north, close to Bolivia. Two wells previously drilled and both showed oil.

RNS : Expect JV with larger producer.



San Pedro Block, Paraguay :

1m hectares in south-east. Previous drilling showed oil.

RNS : Expect JV with larger producer.



Parana Basin, Paraguay :

Canindeyu block covering 1,789,000 hectares. Bordering Brazil. Oil field on Brazilian side already drilled. Chaco also expect to find oil and, at a deeper level, considerable quantities of gas. Chaco has obtained valuable historic seismic for re-evaluation.

RNS : Presidential Decree received 2/11/06.. Petrobras has announced its intention to increase substantially its effort to exploit Paraguay's hydrocarbons and has announced a farm-in on CDS's adjacent block. Possibility that they or another major will do likewise with Amerisur



Corporate Activity : The new Chairman is believed to have been brought on board to prove some or all of the existing Colombian assets and get these oil producing, arrange a JV on the Paraguayan assets before negotiating a sale of the company as consolidation of explorers in the region continues. An exit sp north of 1.00 over the next 12 months might be a reasonable target provided the drilling programme lives up to expectations, the price of oil remains at/above current levels and an approach is made for the company.

Ah, that old chestnut .. hindsight..if we had the benefit of that we wouldn't need to listen to anyone ...

It wasn't hindsight it was foresight, he sold out when the price was 12p, and gave his reason's why.

Yes, but it's not surprising many ignored someone as smug and vitriolic as French Connection.

shudda wudda cuddda, offer something useful!

The only useful comment is likely to come from the company itself. An update re progress would be appreciated by us small - and very patient and long term -shareholders.

Looking good for all interests in Colombia. Alea and Fenix.
Looking very good indeed.
Somebody found the ANH inking pad and Corporate stamp coincidentally with our papers getting to the top of the in-tray, it seems.Now the air is clear for Amer to declare flow test results at Alea-1 and Plat-2, and proceed with developments at Fenix. Looking very good for 2009. Looking very good for Oct 2008!

You certainly appear confident!

Uotld,

You were pretty confident in your 25/7 post and things didn't work out quite as you suggested they would - at that time. How come you are so confident now?

Things don't always go to plan in the oil business. Just because it went quiet and the financial world took a massive swan dive into turmoil and uncertainty doesn't mean it all stopped working over there. There has been nothing much to report in the interim, but I believe that is about to change. Many of the interesting factors referred to at the AGM, before and since, are now under way.
Bulletin boards are places where people express divergent views. I do not say i know it all.
Where and when have they disappointed other than encountering what are, basically, bureaucratic delays? It cost me a a lot of money just staying put and also some of my holding. Many of those delays were caused by inaction on the part of the previous board who did not set CHP up correctly in Colombia when energy and oil related laws were more lax.
If the original crew had intended drilling for, and producing, oil in the first place would have made applications for operatorship back at the inception and not left it to the current entourage to play catch-up with newly introduced regulations.
I could go on.
They have achieved certain things and will not disappoint with flow tests. The revelations could be this week, maybe next?
I do not work for the company! I am as frustrated as anyone with the delays we've had so far.
I also think they will tell us why there have been delays and the 'shut-down' in February quite soon.

A little more patience is required. But we may well be in for quite a nice surprise.

has someone been speaking directly in God's ear then? .... or is it just the magic mushrooms?

Good old cynic - you can be guaranteed to provide the cold shower. Thought of plying your trade in Dubai?

i do! ... shall be going there in a few weeks time ..... do a lot in saudi too ..... that fooled you didn't it - lol!

Call it a sixth sense.

wouldn't know .... i don't have any!

If you had perhaps you would be experiencing a jump in SP this morning !!

i can think of no good reason at all to throw money into this company, though that applies to nearly all minnow E&Ps ..... i wonder how many of the present bunch will still be around in say 3 years time, and not through A&M either!

cynic-AMER WILL be around in 3 years time-and as a much more powerful operator in both Colombia and Paraguay.
All those hurling insults at Gc do not know the man.He is passionate able and very very eager for AMER to succeed.He will not allow any news unless it fits in with the build plan of his company.
The man is rated highly in the City.

the blokee may be the best thing since sliced bread, but AMER patently is not!

zzz

"He will not allow any news unless it fits in with the build plan of his company"

Does that mean he suppresses news which is not part of his plan, albeit part of reality. Not sure he's supposed to do that kind of thing in the name of transparency.