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.

some decent buying volume today, interesting to see some buyers at 7p, next stop 9p...?

BigTed 8p would be good for the session,
Another good start to the day.

Yesterday's rise mentioned briefly in the D Express market round-up today. No link, sorry.
"Oil and gas explorer Amerisur Resources, formerly Chaco Resources, gained 1.13p to 6.62p on suggestions it had bought all or part of venture partner Repsol's 35 per cent stake in the Alea discovery field in Colombia. There was also talk of Colombia licences in the pipeline."

Moving in the right direction but big move ahead.

bodeng1,can you expand on that??

Seconded

Going in the right direction over the last few days,lets hope we find some meat in this sandwhich!!

I just meant a lot in the pipeline.

30% increase from the low has been exellent for newcomers and those topping up.

There is naturally going to be profit taking at all levels on the way up and it will take confirmed good news to reach my breakeven and I guess other long term holders.

Yes Oakapples142, I have a couple of p to go yet.
2517

Apologies if this is a daft question, but surely holders of the original chaco shares should by now have received updated Amerisur share certificates ?

Could be wrong but I don't think you get new share certs on the change of a name.

Thanks, i hope you're correct, 'cos surely with Chaco not longer actually existing as a company, the certificates would be worthless...

I'm sure they won't be worthless, but check with your broker if you're really worried.

whats happened to this board?

All holding our breath. Some reasonable buys yesterday.

Nothing has happened to this board; everyone is waiting for AMER to do what it said it would do 2 years ago - namely drill Platinillo to get some production income. With all their calculations done at an oil price of $60/barrel what they find is going to be a lot more valuable at the current barrel price.

I'm back ;-)

Nice to see you two too !!