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.

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.

Yes, but why? A poster on another bb said that Evil Knevil had bought another load (and ref made to it on an investors' website) but I know no more.

Yes, but why? A poster on another bb said that Evil Knevil had bought another load (and ref made to it on an investors' website) but I know no more.

Another good start to the day.

Definately more interest here this week, We shell have to wait and see what happens.

blanche,we will indeed,what is intersting is that there are less sellers about at 4.25 than there were over the spike in sp tues/wed.

Nice 200000 @ 4.40 now one of 110k should get another tick up. loads of buyers at this price More or less a million buys through at this price

Sharesure,

Do you still hold these?

Annie, Yes, and I still believe that at some stage it will prove to be a good company. But it is turning out to be a longer haul than I ever expected.

SS,

I still think your synopsis as per the header is correct, and a very satisfactory outcome for shareholders is not that far away now.

Hi Sharesure,

Thanks for that. It's certainly taking its time.

Hi blackdown,

I hope so, as my nerves and patience can't hold out much longer!!!

Plenty of deep breaths.

glad you didn't miss type that one!!! lol

A couple of 1m buys today; tight spread with sells at 3.9p. Maybe further advance tomorrow/this week.

BB,

I was very careful - just in case!