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.

Following today's RNS, hopefully the start of greater things for AMER.

Really good RNS in my view-900m barrels in one field only-could well top the 1b if taken all together.

Unfortunately, the market doesn't seem very receptive today.

The initial rise was short lived, looks to be good news but the waiting game will continue well into next year by the look of it.
2517

Shocker.......

Another for the bottom draw Tudwick, hope theres room...lol

There's a bit of fear come into the market again. If the news had come out last week you'd probably be watching a 50% rise but the MM's have decided to pull the sp back as they have with all the tiddlers.

My bottom drawer is full to bursting at the moment.....

Careful dealerdear, making an accusation that the MM's manipulate the sp will upset RF and you'll get a slating.......:)

If I had one tiddler share each time I upset RF I'd now have a bursting bottom draw full of crap...

;-)

The potential here is explosive-just looked back the GKP revise numbers on 25th August-sent the price in to orbit. Amer have over a billion barrels estimated. Obce spudded and oil column is located we could be well in to the 50p range. Certainly not a bottom draw job as far as i am concerned. 3 to 4 months at best.

I am prepared to wait for a 10 bagger .

After reading the rns again I think you are too optimistic in your time frame tf.
2517

I agree. Hold until the end of 2010 and you are likely to be well rewarded.

Guys most of the billion barrels is in Paraguay that is still well over 12 mths from fruition!!!
steady rise is one thing but expecting 10 bagger in 3 mths is, well...........

If the sp falls back to lows,i am topping up.

I don't think that there is any chance of that.

I hope not blackdown,but if there is i am buying!!,@this price i am staying put,its looking better than it has for a very long time.

The reaction to yesterday's announcement says it all - we are still at the 'talk' stage; geologists and seismic experts can all be wrong. Until Amerisur commits to drilling and proving this field is actually there I don't expect the sp to progress a lot.
Also where is the announcement that Fenix has been/is being drilled? The company committed to drill it this autumn.
Anyone know which amerisur broker was fined? (reported in the small caps market news in the Times today)

Mark Lockwood stockbroker desk manager fined 20000 for failure to report an insider share transaction.

SS,

Possibly a bit harsh. The fact that they had their legal chaps along suggests that they were also making sure that their exploration/production rights are watertight, given that the company will be making a significant investment in the country.

Maybe also discussing the government's attitude re the formulation of one or more JVs?