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.

This is really getting interesting now-only 6/7 weeks before drill completion in Wardles favourite block.
Top up time.

necessary for the drilling rig and eventual production facilities. Nice!

QUICK GET THE OXYGEN!

Dare I use the expression 'green shoots' re AMER?

No Dont, More Oxygen nurse cant breath at these dizzy hieghts!

Steady blanche, will have to come and give you CPR soon.....

Just bought 500k-can only see this getting better once spudding has commenced in October.The Fenix region is renowned for oil and gas ,and I am excited about Paraguay potential.

I agree with the Frummer-bye bye to 5p.

Yes i think its a bye as well, that's why I bought Afren.

Held on to its gains today which is a first for AMER-bodes well.

Today's RNS looks to be behind the rise:

Amerisur: Platanillo - Assignment of Interest

"Dr. John Wardle, Amerisurs Chief Executive Officer commented:
'I am very pleased we have acquired the full working interest in this contract. Holding 100% of this block will bring immediate economic value and also gives the Company access to expanded options for the future appraisal of the field. We have now submitted the required paperwork for the award of the Exploitation Environmental License to the authorities and expect to begin commercial production before the end of this year.' "

All this rns. This is really good news for amer. Should finally see some upward momentum.

Blimey!

This looks to be coming together at last. Key comment I think is the reference to increasing the Platinillo block still further. That was rumoured some while ago but I suspect that that had been put on the back burner pending getting Ecopetrel's 40% agreed first. Maybe the market (and me!) might start giving this mgt more credit for being shrewd!

All credit to John W. Worked a real blinder here. Like the bit from GC about improved cash flow-very important in these times. Also believe future oil flow = greater revenues and eventually more drilling rigs being placed. Paraguay to look forward to. By the time we spud early October we may well be in to double figures

Taken from another thread yesterday. With thanks to the author. I'm sure he won't mind me reproducing it here. Interesting stuff.

"By way of introduction I have posted news from AGMs in a positive fashion. The appraisal 2008 AGM could be summarised by saying that most of the planned action would be happening in Q2 2009 but it was worth holding. As we know Q2 2009 became Q3 2009 but, with the exception of Plat 3 it is now happening.

Positive AGM posters have come in for some criticism for having rosy eyed spectacles or being short term rampers. I have been in this since 1998 and no I didnt sell at 17p either. AMER is my biggest holding so Im in for real. I appreciate Beaus posts and there is clarity in the facts as he sees them. Nevertheless I have previously said I see value and that remains my view.

I think the strategy of gaining 100% of Alea is likely to prove to be an impressive negotiation. The AGM statement included We have established up to 900,000 bbl of recoverable reserves from the two existing wells within the lower U sand only. I think the recoverable reserves will turn out to be a lot more due robust well management now that Ecopetrol are out of it, due to the Upper Sands (which have been off the radar but are believed to be oil bearing), and due to production from the other Alea well that may not be just a home for unwanted water.

I would like to think that Plat 3, which is near the access road, will be progressed now that Ecopetrol are off the scene as well.

Turning to Fenix, I discussed with Doug Ellenor what oil might be produced from Fenix if the drill did not hit the trapped reservoir that was the main target. The well that was drilled straight down many years ago produced oil from about 3 levels, I believe, without hitting the reserve that is now being targeted. I am not a technically able, and these are my words rather than Doug Ellenors, however even if the drilling does not hit the main target it may produce enough to cover the cost of drilling by releasing oil from lesser areas found on the way down and therefore reduce the risk of Fenix.

As has been said by others, including the directors, Paraguay has major potential. At the AGM it was clear that the knowledge of the structures had moved on in a big way. To sell before this is joint ventured is not in my plans.

I dont think it is a matter of, Is it worth 6p, 7p 9p, 12p? There must be a price at which it would be wise to reduce a holding prior to the results of Fenix being known but for me it isnt anywhere around a single digit price. I increased my holding by 20% after the AGM so these are genuinely held views.

Best regards to all the regular posters.

Xscream179"

back up quickly after pullback. Unusual

blanchAMER always surprises-was not expecting this after yesterday but then again was not expecting yesterdys fall on the news flow to come-especially spudding of fenix.

Good to see amer holding on to its recent gains and small tick back up from 5.25 back to 5.75,and a nice 800k buy for a little confidence.

Any of you guys in PELE (Petrolatina)? Just looking at other companies active in Colombia.
They will be producing around 5,000bpd in the near future and are valued at 50% less than AMER after their recent discovery.

Interesting company. Six wells drilled this year all six wells successful with more planned for 2009 and into 2010.
Waiting on report that confirms significant upgrades in production and proven reserves.

Worth reading their last two RNS's.

I'll drink to that.