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 they keep the noise down wouldn't want the nap disturbed until they hit oil!

FT today:

Amerisur Resources , which is chaired by Giles Clarke, of the England and Wales Cricket Board, added 5.9 per cent to 6p on rumours of an update from its operations in Colombia.

Presumably these rumours relate to the award of the environmental licence. Drill news must be a way off.

Heady heights, I'm feeling dizzy!

Can't remember when it last reached 7p.

Oh yes I remember, I was a young virile man with my life in front of me ..

That long ago - who was on the throne then?

Victoria I think, but there again, these days my memory ain't what it used to be ..

Aren't we due an RNS sometime re the resumption and/or increase in production at Alea/Platinillo if the water contamination issue has been solved?

This what the FT could be alluding to sharesure.

Either way i am expecting big things from AMER once TD is reached.
Another GKP perhaps??

How far can this go before news? 9 or 10p?

Possibly, but increases to those levels would certainly induce profit taking.

Looks like the production licence could be issued this week.

Its all coming together,i wonder if we will see 10p on licence issue.

Wakey wakey

RNS Number : 3421B
Amerisur Resources PLC
26 October 2009

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26 October 2009


Amerisur Resources Plc ("the Company")


Colombia Update


* Production recommences at Platanillo
* Fenix current contract phase extended to 21st February 2010
* Iguasa-1 progressing according to plan



Amerisur Resources Plc, the oil and gas producer and explorer focused on South
America, is pleased to announce an update regarding operations in Colombia.


The Company has successfully completed the temporary contractual and licensing
arrangements necessary to re-establish production in the Platanillo block. As
such Amerisur placed Alea-1R on production during the last week. Platanillo-2
was also placed on production on Sunday 25th October. The wells are currently
being monitored and allowed to stabilise before adjusting injection rates to
optimise production levels. The Exploitation Environmental License process is
proceeding favourably, and this is expected to be completed during December
2009.


The Company received confirmation from the Agencia Nacional de Hidrocarburos
(ANH) that the termination of the second phase of the Fenix E&P Contract would
be extended to 21st February 2010 (this previously fell on 11th November 2009).
This extension compensates a delay caused by negotiating certain terms of the
environmental licence with the Ministry of Environment (MAVDT) regarding
specific environmental issues.


Following the announcement of the spudding of the well Iguasa-1 on 19th October,
the Company is pleased to confirm that the operation is proceeding according to
plan and drilling had reached a depth of 2,365ft at noon 25th October, with one
casing successfully set and cemented. This is the company's first new well in
the Fenix Block and is expected to take approximately 30 days in total to drill
and log.


Giles Clarke, Chairman of Amerisur Resources Plc said:


"These are all positive and encouraging steps which are the result of the
planning and preparatory work we have performed over the last year or so. The
results move us nearer to the Company's objective of becoming an important
explorer and producer in the region. Progress at Fenix is encouraging, where the
actual drilling results are very much in line with our geological prognosis in
this complex area. The shows of oil and gas we have observed to date are also
encouraging, and we look forward to continued good progress into the deeper
sections of the well. The replacement of the time we spent to perfect the terms
of the Environmental License is also welcome, since we will have additional time
to review the results of Iguasa-1 before the end of the phase. The
recommencement of production at Platanillo is significant, where our increased
interest now gives us 100% of the post-royalty revenue from those wells. Our
technical team have worked very hard to re-engineer, restructure and thus
control the operational cost base at Platanillo, which should demonstrate
important cash flows in the immediate future. I look forward to updating
shareholders as results continue to accrue in this very exciting period of
growth for the Company"






The Platanillo block is located in the Putumayo Basin of southern Colombia, and
is held 100% by Amerisur Resources Plc through its subsidiary Amerisur
Exploracion Colombia under an Exploration and Production contract with ANH. The
contract is currently in the Exploitation Phase.


The Fenix block, located in the Middle Magdalena Valley Basin of Colombia is
owned and controlled 100% by Amerisur Resources Plc through its subsidiaries
under an Exploration and Production contract with ANH. The contract is currently
in the second Exploration Phase.

It will be interesting to see how the market reacts.

little bit of profit taking today.

Inevitable, given the rises over the last few weeks.

It is disappointing that volumes are low today after the news.

Whilst the news was encouraging, it's the next steps that will have more impact:

* Fenix - whether there is likely to be a commercially exploitable amount of oil
* Actual production rates for Plat, so that the net income per day can be deduced.

Would anyone argue with 1p on the sp/1 mb oil in the ground as a valuation at current oil prices.
Example calculation: Recoverable Reserves of 150mb at 2/3 to reflect risk = 100 mb. assume long term oil price of $40/barrel less Cost of extraction, delivery and tax etc of $20/b = Profit/barrel of $20/b. 100mb at $20/b profit = $2.0 b. 800m shares = $2.5/share = 1.56 sp. ie 1p sp for every 1 mb Recoverable Reserves.

Interested in anyone else's version; this has aimed at being conservative in terms of the maths. The Recoverable Reserves is based on some very speculative suggestions way back, we won't know how realistic those are for a little time yet. If they turn out to be at all accurate then the future looks very promising.

A split of the company into Chaco Colombia and Chaco Paraguay must then be a priority.

SS,

I thought it was $5/barrel in the ground. That is say 3.25/barrel. So 100 million would be 325 million = 39p/share (833 million shares). I believe that bids for companies with proven recoverable reserves can be higher than $5/barrel.

There are some figures of extraction costs/barrel (Plat) in the AGM presentation based on various levels of production. Got a feeling that at 500 barrels/day, the margin may be something in the order of $40/barrel with oil at current levels.