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.

i am always happy to apologise as/when necessary, unlike many here and in real life ...... just how long do you intend to give this load of rubbish? ..... SS has clearly been promoting this company since mid 2007 (thread header), so you are already 18 months down the line, having been through an unprecedented boom in crude and now its relative collapse ..... AMER made little or no hay during the boom times, so now what?

Wait.

"Just how long do you intend to give this load of rubbish?"

Week commencing 23rd March. No later than.

I hope you're right

It tends to be a lucky time for me.

at least i should still be alive by then!

Pleased to hear you are somewhat positive on that. You rarely are on anything else.

i am positive you guys should not be in this stock and positive that you should have been in TLW and HOIL and SHP and arguably PMO and short of WOS

Let's review in 3 months time.

what's wrong with 24th March?

Yep, see you on 24th March.

Well I too wait with baited breath on this. Luckily took a little profit before it all went t*ts up but still sat on quite a few.
For me this company doesn't really seem to have any strong direction and despite the repeated promises of news, nothing is ever said. I do still hold as some of the acreage they have may come to fruition but certainly not counting on it anymore. Wishful thinking on my part maybe.
Along with RGM I would regard this as one of my poorer invesments, luckily regularly trading HAWK has kept the wolves at bay.
Good luck to everyone still holding

Something going on here-very strong buying.

plenty of volume, but really not that much excitement with sp, so could be just an institution moving it from one hand to the other

Do I detect the faint aroma of humble pie. ?

not really, or even not at all ..... as i posted a little earlier, pretty good volume, but nothing that exciting happened to sp ..... +14% of bugger all was 0.33p, so no yacht for you!

Aha - but I have 10m of the buggers - so 14% of 10m - is still bugger all !!!!!

what do your doctor and psychiatrist have to say about your dire affliction?

what are the costs at Alea to get the stuff out the of the ground?

Does anybody know the lifting costs in South America? i'm trying to get a feel of how profitable AMER could.

Oil Break-Even Prices
Nation US$/Barrel
Bahrain 40
Kuwait 17
Saudi Arabia 30
U.A.E. 25
Oman 40
Qatar 30
Canada's oil sands 33


Based on the formula, profitability of these countries' oil operations are in order:
Profitability at $100/barrel oil
Nation Break-Even Price Profitability
Kuwait 17 488%
U.A.E. 25 300%
Saudi Arabia 30 233%
Qatar 30 233%
Canada's oil sands 33 203%
Bahrain 40 150%
Oman 40 150%