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.)

b>



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.

You may well be right, but I am staying in.

So am I but not because of his involvement.

Well I am hoping for an improvement by Xmas - there seems to be so much news being stored up. But agree that we need to see an improvement in the markets first - and I think the markets will still go lower before we start to rise

Not even GC is King Canute-
I know the man and my money is on him to deliver.When in this climate is anybody's guess.

not sure that Canute is quite the comparison that you seek, though the fact that there has been no visible tide of oil may indeed make it apposite!

Nice to see you back sivad. GC has to sign the agreements set up by JW. JW is the one who gets his hands dirty and he has been very busy lately.
The arbitrary period between Director purchases, prior to a news release, for decency's sake, has elapsed now and I expect they will deliver on their promise quite soon.
They have not disappointed yet or put out 'bad' news. It is very frustrating when other co's are releasing RNS' several times a month. I want to see another emphatic step in the projected schedule and I expect we'll be told soon enough.

Canute was misunderstood anyway. He merely attempted to show the King did not control nature. I know who the power behind the throne is and he is doing it all for us. GC is just the official imprimateur.
As you say; when will they deign to tell us?

you're right ..... even GC could not hold back the tide of oil if it ever exists!

Maybe the difficulty they seem to be having wrestling control of Ecopetrel's 40% share of Platinillo suggests that it is not only Amer which believes that this field will turn out to be very lucrative. Apart from the usual lengthy timescale for the ANH to sanction RNS's I would expect that there may be quite a lot of information which could be announced soon. Why else would key UK Amer people need to have recently been in Colombia?

restock on powder for christmas!

Yes, am sure they are doing what they said they would. They are playing the long game here - they said as much at the AGM in the summer. At least we are not being subject to rumour and leak with this co. GC said he would release facts when they are known, and when they are allowed to under the rules. Fair enough by me.

Is something happening today, fair amount of transactions?

nothing good!

Maybe just the friendless AIM market and the sinking oil price. Given the various countries which need an oil price north of $75 a manipulated recovery to around that level looks a reasonable prospect once the end of this downturn looks to be on the horizon.
Cynic never has a good word for any oil stocks that I know about - regrettably the feeble management of many of the AIM oilers have a habit of proving him right.
I still believe that the underlying potential of Amerisur is there and that once this sector even approaches coming back into fashion, this stock has better than the average chance of staging a good recovery.

Sharesure,in for a penny and all that,i topped up this am,and average now at 4.75.

try getting it right Sharesure ..... in their time, i have been a fan of TLW, PMO, BUR and PFC (though this one is not strictly an oilie) and currently hold IEC, HAWK and EO ..... in fact, you are clearly badly wrong in your assertion and quite probably with throwing money at AMER

as I said as far as I know... but then I am not a regular follower of your comments. If it doesn't risk you being sued I am sure that many would be interested in what you consider to be so wrong with Amer - is it the management, the assets, the area of exploration or what else????

AMER have threatened solid news for far far too long, and come up with zilch! ..... my gut feeling is therefore that i shall certainly not live long enough to see any, should it even materialise ..... i also readily admit that i allowed greed to take hold a good time back and suffered the consequences both here and with GOO .... in both instances i eventually bit the bullet

Well that's a relief that it is only a case of being bored with waiting; aren't we all? The fact that Colombia and Paraguay remain largely unexploited as far as their hydrocarbons are concerned is probably explained by the snail's pace that progress seems to take. China has been the same but has produced some stunning returns (50 baggers) for those that waited and weathered the dips in sp along the way. Doubt now that this will ever be quite as dramatic but 10 or 20 bagger must be a possibility from the current sp - but in what timescale I wouldn't want to speculate a view. I'm prepared to wait another year... if that is necessary.

and many if not most who dived into china have ended up with broken cups and saucers and floods of tears before bedtime!

Well, not me. Just a shame that I used it to get in here at between 3p -6p. It looked a good decision for all of a few months!