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.

Hope so as rns didnt say much.

Well i am glad i did not set my alarm!,
Once we start production of the oil in the amounts stated in the RNS my hope is that with the strong cash reserves and the cash flow to be generated and any other news will finally start to see a steady increase in the sp.

yet another `nothing' statement in my opinion......

Not a bad statement-stating fact and a bright future-see whta the AGM produces.

Feel happy with the cash balance and future drill schedules.

2 mm's gone blue-certainly dont expect to see it red by the end of the day.

Out of interest Chabadnik, how long have you been a holder of these shares ?

Below is a copy of Xscreams report of AGM along with my own views from the day.


"Evening All,
Well, I am pleased I went to the AGM. Whatever our satisfaction of the pace of progress John Wardle has consistently impressed most of those who have met him. Today continues in that vein. The AGM statement was bland and there is no surprise there. Interesting pieces of info that were part of the presentation included:
ALEA The environmental permit that will allow Alea production to start is expected in the unspecified near future.
It will take about 10 days to finish off the final touches to the Alea production facilities. John considers the management of water to be the key to fine tuning production in this valley. He showed photographs of large artificial ponds that will achieve this. The water management is complete.
The break even prices for Alea Production of 300, 400 and 500 BOPD are $32, $27 and $24, no problems here.
Plat 3 no longer has a timescale for drilling.
FENIX
JW listed 4 targets within the Fenix area. Fenix was previously, as I understand it, divided into 3 being La Tigra/Fenix 1/new name Iguasa 1; Fenix North and Fenix South. At the last AGM the estimated oil for the 3 blocks was 28-84mmbbl (which was an increase on the 2007 figures). The 2009 figures are 46-240 mmbbl excl Buenos Aires 10-65mmbl (This is a medium term target). This may be the same as Fenix South. JW was not saying the estimates were more however the numbers add up to more. Site works in preparation for the September drilling are being done now.
SAN PEDRO (Paraguay)
New info from the Brazilian side of the border and informative Geochem soil sampling results has led JW to no longer doubt that oil has migrated into trapped areas that, if found, will be capable of being produced. JW showed illustrations to add substance to this. The contractors that conducted the Geochem were particularly impressed with C2+ anomalies that shows, as I understand it, heat in the formations.
Cash at 31.3.09 is 9.2m Capital commitments are 2.4m (Fenix 1). The cost of Fenix 1 is much reduced form last years estimates. AMER have gained around USD 900k though currency gains.
AMER continue to provide community benefits including the building and equipping of 5 schools and supplying water when there was a breakdown in the local supply.
The directors considered that production revenues and partners contributions would fund future new projects without needing to raise more money from shareholders.
There were only a dozen non AMER directors at the AGM and this included the auditor and broker representatives so there were few investors.
My notes are pretty much restricted to information as presented. If I were not a holder I would buy. I am happy to hold. Nobody is delighted with the passage of time and the periods between updates nevertheless my view is that the directors are creating value.

Xscream179"




Evening all. was good to renew old and new friends today.
Xacream has given a very fair and concise report of the days events.

the only points I can add are that in Alea the operating costs have been significantly reduced to a third and our breakeven oil price is now only
$32 a barrel. Plat ONE is still interesting and will be looked at again in the future. The water problem that has presented itself will now be disposed of by
skimming off the artificial ponds and released into the river, not into Plat 1 as was previously annouced.

Fenix oil seaping out of the ground is fresh and warm with a API of 30, this makes it very desireable indeed. The Iguana well has a COS of 35%, most wells drilled today have a fig of 20% success.
It appears that any JV negotiations were not on the favourable terms that we require so it has been decided to drill the first well ourselves as this is a very
good prospect and the chance of success is high.

Paraguay,is starting to really excite JW and he really wants to understand the Geology there better before they enter into any form of JV. Obviously the more understanding the less risk and better terms of any negotiations.


Having spoke to two of the directors at length, I am more convinced than ever that as large shareholders they are just as frustrated as we are and they want the best for the company, not just for us but themselves as well. Cash position is very healthy and as soon as Alea production commences then the company will be self financing with nearly 6m in the bank and the well at Fenix paid for!!!

After last years AGM I was not happy and sold. This year I am holding and will continue to buy as and when.


M

Thanks for that, always helpful hearing view of other holders who attended, seeing as I couldn't make the AGM myself.

Yes thanks for that ML, I like many long term holders get dis-illusioned because of the time frame and every so often think it's time to sell, so far I have resisted and the above posts reaffirm the view that patience will ultimately be rewarded.
2517

SAME HERE,many thanks,i wonder how we would feel if we sold and it did a GKP the next day.

If only all my oil minnows did a GKP, thankfully I am in them at <11p but will continue holding.
2517

Good on you 2517,not the case here.

Sold half GKP at 28p very nice..

Profits being taken in GKP atm, understandable, well done bb, I have high hopes that PRL will make me a mint as well. Sorry it's off thread.
2517

Two plops already. Clearly the post AGM period is a rude awakening and all the misleading lies and garbage is taking its toll.

Let's wait for the ironmans thread on the dark side to produce the usual complete and utter bull: -

- a great buying opportunity, erm, for the umpteenth time;
- must be a large buy being manoevred onto the market;
- real spread is 3.25/3.25 and all the trades yesterday and today are buys because every man and his dog is still topping up;
- excecllent news waiting to be released this week, or will it turn out to be next week, or next month, on next quarter.........

YAWN.

Even more funnier is the claim by the ironman to be holding an average of 2.5p yet he's ramped like duck since at least the 6p+ days. One can only conclude that he either pumped and dumped or we can expect a 3% RNS as he must hold millions to average down from the 6p and beyond period. No wonder its desperation stakes and he stamps on anything remotely negative.

Absolutely priceless.

It's fun being provocative.

No word from Sharsure , does he still hold these ?

Sharesure was very pro AMER but like the rest of us he (according to his posts over recent months) has become disillusioned with them. I know I have but I still hold.
2517

Presumably if you still hold, then you believe that - at some point - the share price will rise. I can never understand why those who are disillusioned don't sell up and reinvest their money somewhere where they think they stand a better chance of success.

Hence the saying 'There's nowt so queer as folk'
2517

The Pdf presentation is now on the Amer website.


http://www.amerisurresources.com/Amerisur_AGM_presentation_05-08-09.pdf