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.

ML: about the only prediction I've got right!

Predicting this lot is a nightmare.

Let Amer do the talking-so far so good. It will take time. Pretty good job to turn the company round by a 1m-veen if it was FX based.

Anyone know the date of the AGM? The company's web site is out of date.

sharesure -
AGM: August 5, Cardiff.
ML has been told it will be at the same venue as last year ie the St Mellons Hotel.
http://www.bestwestern.co.uk/Hotels/Best-Western-St-Mellons-Hotel-83508/Hotel-Info/Default.aspx

BWD, Thanks; I suppose that is when we will get an update on Paraguay - more waiting and patience!

SS - it looks that way. The Paraguay research work is now scheduled to take until August rather than July (March RNS) and we will have to take a view as to whether that is a positive, negative or neutral.

BD - did they say June? I can't see a ref to it.Perhaps I've missed it.
Talking of June, I was expecting a ref in the latest RNS to production restarting at Plat/Alea. Rather disappointed that nothing was said about that. Maybe waiting for the nod from the ANH or Ecopetrol but if that were the case I wish they would just say so.

Bwd, extract from May RNS ......Initial results will be available during early June and final analysis will be completed during July 2009.

no rush to do much with price of oil creeping down

BD, thanks. Was looking at an earlier one. I guess we will have to wait for the final analysis seeing as we have missed the "initial"...

Someone mentioned there's a hint of a company buyback of shares in the agm letter...... Firstly, is this true & secondly, is this not a tad worrying to us investors ?
I will be honest & admit that I haven't read my letter yet, still sitting on breakfast table at mo.

AGM letter? Didn't know there was one. If Aug 5 is now official why haven't they posted the date on the webshite? Incredible.

BWD, I think it's a proxy voting form in case you can't attend the AGM. I received it yesterday in the post. I take it you've not received your yet then. Once you've read it, let me know your views please

Tud: I'm not on the register. All held in nominee accs so I doubt I will see the letter unless they post the contents on the website or I get someone to email it to me. I think they have done that in the past. I am considering attending AGM so will try to get it obviously.

Tud: I don't profess to fully understand all the jargon... but it looks like they simply want to delete a now irrelevant clause relating to whether the company can or cannot buy its own shares. I can see nothing of consequence there.

ML, dont they have to notify shareholders at the latest 21 days in advance of AGM? I'm not that up to speed these days with the regs and they change so often anyway....

Beau

Cheers BWD, likewise no fully conversant with the jargon, but was initially worried that this would mean the carpet could be pulled from beneath us & be left with nothing. Let's hope the directors aren't that conniving, considering how long some of us have waited for this to make significant progress, not that it has at present.

Correct Beau, 21 days is a requirement.

Well, good luck ML. I was planning a trip to visit the old man in Glamorgan over the AGM period, but work committments makes this difficult now. Was going to face all the serial rampers and change the tone of the meeting and challenge the all smiling Gilesey and his spin that has so often mesmerised the back slapping followers and almost always eluded full achievement as the sp testifies and as so many refuse to concede because its such a long term investment. I had a quick look in at the threads on the cess side and note that BWD, all present again after a long spell in the wildnerness, is lauding up the ironman on the quality of his thread. Not sure if I've ever laughed so much in all my life, I almost wet myself and it made me want to return. But alas, we move on, you know my email address, so drop me a line from time to time, I may give you a call after the AGM to get a feel of the levels of a*s licking at the AGM which will allow me to gauge the chance of all the usual empty promises happening this next 4 quarters and to see if it will at long last demonstrate to shareholders the status of producer, that has been lauded for yonks but has not quite happened yet.

I'll pop by occasionally to read the bollocks, have a good laugh, and will probably post over on iii as its the easiest password to remember.

Beau