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.

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

blackdown

Not as funny as reading the continual garbage on the dark side, mostly lies and illegal ramps, perpetuating over long periods, going from hectic activity on a thread from the desperate holders as an opening coincides with a small spike to long periods of silence as the sp drifts back, inevitably on the disappointment or non-event, then the red faced wallies tip up and rally to begin it all over again. Check the chart and the volume, then any news statements for that period, speaks volumes.

I recall getting slated when I questioned the 12p (or whatever unrealistic figure given a couple of months ago) by Sept nonsense. Rather amusing dont you think, yet few at the time dared to question it, preferring to back slap and massage the ego of the owner of the statement. Pretty much sums up these ridiculous free bb's that pretty much delivers 99.9% horse poo from an informational, honest and realistic perspective. Yet thousands rely on it, and many of them get sucked in.

This share has only ever been about hype by those calling themselves experts or pretending to be on first name terms with the Board. Each time the guff fails to materialse the very organised defence becomes a stronghold of war cries spouting "hey guys, its only ever been a long term investment, this time next year" and countless other classics as if to justify the ongoing malaise, constant disappointment, lack of communication and seemingly indolent progress.

It certainly has been a long term investment, it has taken 3 years at least to get Plat to this stage, still not producing, 3 years to still be waiting for these near term revenues Clarke boasted of, 3 years and still devoid of real information with regards to operational progress (except an update around AGM time) and reserve quantities that actually states it how it is.

Most disguise their unhappiness and desperation with attacks on people who counter the nonsense, question the company's performance and attempts to balance the rose tinted brigade's drivel. The thing that is most worrying for me is that there are those who never fail to support those ultra optimists (being kind) who continue to spout unrealeastic claims that fail to materialise only for them to return to repeat the process all over again, with impunity and increased respect. Never fails to amaze me that folk are so trusting.

A professional outfit, in my book, should be advising its stakeholders of specific, measurable, achievable, realistic and time related objectives. The old classic SMART management technique. Those objectives, when complete, should be communicated professionally and the process should start all over again. Sadly for me, this shower dont know their botty from their brain.......the AGM demonstrates that little changes from year to year and shareholders merely take on the chin all the nonsense, nods and winks etc that pretty much attempts to justify the hundred reasons why their status as producer is still to be achieved.

So me, provocative, no mate. Realistic.

AIMHO naturally.

Back in a week or so.

Beau

Aldwyickk & others,

I do still hold these and will possibly buy more over the coming months but that is not necessarily a measure of confidence in the stock which I would expect anyone to draw a conclusion on since I know no more, and maybe even less, about these than some others these days. Like a lot of people I think that I have heard enough bull from certain quarters to last me a long time - most frequently forced unfolding of positions causing weakness in the sp and also well-connected GC people mopping these up. Doubt much of that is true. I still hold a reasonable amount of this stock and if it strikes oil in the Fenix area in the 3rd or 4th qtr I will be pleased. If it does a JV with a major on Paraguay that should also be helpful.

On Paraguay one has to wonder why, if so many wells have produced such good results over the last 50 years, firstly, why even more have not been drilled and secondly, why they have yet to get an oil industry established. After all we have had several oil price spikes during that half century. It cannot all be down to bureaucracy, can it? At least with Colombia one can understand that political instability and the threat of being taken hostage or worse (hopefully in the past now on the former and much reduced in the latter) will mean that we can now make progress.

Beau62 this is probably the best statement anyone has ever made on this site i agree with you entirely