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.

sivad - are you expecting news this month too?

I am

Robbie and Bhunt what news are you expecting?

Yeah, come on. Spill the beans.

Good volume this morning,news coming?

Something must be going on,those in the know are buying,there has to be a reason why this is up 30%,on a day when the markets are down,i just hope it is sustained this time.

Somebody knows something.

Now we are up 60%,could be we are close to farm in,as per last RNS,its cooking for now,lets hope we get covered in OIL. PLEASE!

Nice rise this morning for what some recently and colourfully referred to to as "1st class shit "

Great quote annie38, love it

Nice one Annie. First class news coming I suspect.

In my opinion, a '1st class shit' takes place in the morning and involves something interesting to read.

i guess it's better to be 1st class shit than to be worthless shit, for horticultural use or otherwise

more seriously, i have some concerns over the current sharp rally as it looks far too frothy to me with many amoeba-minnows rocketing ahead on the slightest rumour, or just on whim

Glad i topped up here back in march @1.7p

Fantastic volume. Apart from some large buys I wonder if there was anything else behind the spike today, apart from it being 1st class shite, of course. Some talk on the other bb about a tie-up with a major...

Morning.
Today's Daily Express: "South America-focused oil and gas group Amerisur added 1.13p to 3.63p on heavy volume amid vague bid gossip and talk of a joint venture deal."

sounds like time to take (some) profits

Or maybe, perhaps not.

Well not today anyway,still buying and a small tick up today.

Quite a bit of volume this week.