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.

we have identified significant prospectivity in the relatively small areas covered by existing data. This gives us considerable hope that we can convert these leads into commercial discoveries, and indicates that the eventual potential of our Paraguayan acreage may be very large.


real strong and positive stuff, of which dreams are made

Hey cynic - dont knock it - it may well still be jam tomorrow - but the RNS was a marked change to previous RNS's. Agreed it might take a couple more years to deliver - but I for one was encouraged

for goodness sake, why can't you just bite the bullet and put your money elsewhere where it has at least a realistic chance of growing within your lifetime

Because I like the odd challenge I guess

There's knockers and knockers. I know which sort I prefer.

all you blinkered "blue sky" boys (more like pit ponies!) would do well to look at the comments from TLW's annual results, now on that thread, with regard to what constitutes commercial volume and the length of time it takes to bring it on stream ..... falklands fans should just take a deep breath and dive for cover, as the TLW finds are relatively easy to exploit and recover

The humble pie is being prepared, nearly ready for the oven.

don't be silly .... you might pop your head in there by mistake!

24 March - not long to go now.

what's the diff between AMER and SEO? ..... one pretends to have oil while the other pretends to have the ultimate answer in biodegradable packaging .... other than that, they're almost identical with both pretending that they have viable businesses and conning the odd mug here and there to buy their shares

Cynic,

You're lovely. Guaranteed response every time.

when will you mugs ever learn that AMER, GOO, SEO and a stack of others are just money pits?

Come on. Give us a break. We can't all be as shrewd as you.

at least i had (and still have) the sense to cut losses here and in several other misbehaving stocks ..... don't you?

You assume I am making a loss.

as sp has never been lower, then YES!!
and regardless, you should still have bailed out many many moons ago when sp started misbehaving consistently

We'll see.

blackdown - March 24? What is happening then?

Well I am nearly 50% up on my investment in L&G - question is - do I take the profit now and invest it in here ??

are you totally off your trolley????????????