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.

Don't forget the mists, as well! Perhaps appropriate given the veil drawn over operations since big G's arrival.

or to misquote Izaac Walton, "The season of falling charts and sharks!"

Sorry, forgot the mist. As the sun comes up, the mist will clear.

And there will be a "Host of Golden Daffodills"

any thoughts on recent sells anyone?

same old, same old, imo shankly. Don't think they are significant in size or number. I would have said the same if we'd ticked up on the same amount, by the way. We are in the doldrums again until there is an announcement about further progress.
At least we are now in the "second half" of Sept, so the work-over rig should be on site at Alea-1 and re-entry work about to start, if it has not done so already.

As per the last RNS issued 6/9........'Should the well
encounter hydrocarbons, initial testing is planned to last for 10 to 15 days'.

We are now 12 days on, so it would be interesting to know if the initial testing is still in progress.

blackdown - the drilling has to be done first. That could take 30 days from the date it was spudded. Assuming they hit oil, then there will be another 10-15 days of tests. So, October is more realistic for news on that front imo.

looks to me as if GOO (i hold) and AMER (i don't) are desperately vying along with VOG for Bad Bet of the Year! ..... in truth, i hope they all (especially GOO) find buckets of oil ..... that at least is an improvement on the usual dusters!

BWD (Hi)
re 157.
And if they do not find hydrocarbons there will presumably be no further testing to be done and we will be informed sooner than if there were hydrocarbons.

Spud announced 6th Sept, with a 30 day first drill - that takes us to 36th Sept a Saturday. No news by then would be a good indicator there is something worth testing.

Tony . did you buy your calendar in a pound shop ?

Ah - someone is awake. LOL

still smiling here...lol
nice one Tony..

Tony. I like your thinking. It's difficult to know how they are going to deal with news of any kind on this well... but I guess no news could be good news (for once!) Maybe they will link in with Alea. Wish I knew. It could be a long month....it might even feel like 36 days!

Good day to put out news!

Thanks Bwd, I think there will be more jitters this time around unfortunately.Therefore we will be more open to manipulation. Been here since 2005 with sizeable stake. Saw 18p come and go.

shankly. Yes, I remember 18p well! I've learned a lot since then...but surely Platanillo should be less jittery. At least we know it has got some oil. Question is: how much can AMER/Ecopetrol get out?

If you have any spare cash take a look at Indago (IPL) whilst the wait for AMER continues - it might be timely since a prgress report must be due soon.

I hope its a better tip then CHP was.

I see the old company secretary has taken up an option for 300,000 shares @2.2p each....