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.

SIVAD,
Must also add that your posts and those from Shareshure have kept me going when at times it seemed i was going to loose it all,not going there again.

Noted your comments and I really hope that luck and fortune are on your side.
We really are at a crucial stage of Amers development and the pending news will IMO be the catalyst that will send us up.

Thanks Sivad
Hope you are correct on this one,then i have nothing to worry about as i will be taking out my origional investment and the rest will be pure profit,not falling for the fear and greed which had cost me in the early days.
Two good large buys end of trade 800k and 700k,the buyer is still soaking up the sells.

Spot on Sivad re 1535.
No guarantees in life. Things can, and do, go horribly wrong. However, I would suggest the RNS of Nov 5 was better than anyone expected, especially from a company which usually keeps news flow to a minumum. Also, to see the chairman and CEO grinning from ear to ear in front of the well - before it had even reached TD - spoke volumes for me.

Has td been reached? One would assume so. Any problems such as water contamination or drill equipment failure would have been notified to us by now
I am only assuming but what with the pretty large trades going through one would imagine traders taking positions.

Capetown, Thanks. I never thought that when I first started this thread that it would take as long as this to reach where we would seem to be now. I certainly won't be selling any on the drill result from Fenix - not necessarily out of greed but a belief that this has the ingredients for being an excellent stock and that this is going to prove to be only stage 1 of a fairly straightforward business plan. In believing that I think that all of the spadework done by John Morris, Graeme Stephens, Martin Groak and Jon Pither are now about to show that they were right in setting up what they did. Granted John wardle has brought more still to the company in the shape of Fenix and giles Clarke in raising capital (although I think that he has well and truely rewarded himself very well in the process). I agree that TD most probably has been reached although I suspect that what they are all smiling about was a reasonably sure bet in the context of drilling where nothing is ever that certain.

This now looks a good bet to me-no bad news reported despite td reached-it must have by now-so assume time now spent on log tests.

I copied this from another board. I do not know the people on that board so have no idea whether that info is reliable or not - apparantly it came from an ex Chaco person.

Nice if is true - but dont add too much credence to it unless you have other info to corroborate it - which I dont. Others on the board have asked for supporting evidence too.

"i heard that the well was making high press gas from 300m and oil shows all the way down. Wonder when the company will release this and significance to reserves in the reservour sands? "

Very good news from the company today.

BWD, what news please ?

No worries, I've now read the update via iii.

All very welcome news at Fenix. Plat resumption of production and estimated figures/day are also due shortly if their previous statements are being followed.

Thought we might have seen 10p today on the back of this news. hey ho!

.....what a shocker, a former director suddenly decides to exercise his rights to 1 million shares @ 2.16p.

why not wait? Is he going to sell on?

FT today: "Amerisur , the oil and gas explorer chaired by Giles Clarke of the England Wales Cricket Board, rose 7.1 per cent to 9.37p following a positive drilling update from its Iguasa-1 well in Colombia."

cmp0325, by exercising now he would cap the profit for tax purposes, the disadvantage being he would need to pay the tax in this tax year. But if you reckon a share is going to rise from current levels that is the sensible thing to do. As for which ex-director it was, there are a few to choose from but it might be ex-chairman, Jon Pither, or one of the Ozzies based in Perth. If it was one of the latter then that may be a very healthy sign since I doubt that they are entirely in the dark about where the sp is likely to go to next.

Thanks for your explanation Sharesure. Some high value transactions today, long may it continue. It would be great to see double figures again.

Whether (or when) that happens will depend on a) results from Fenix (which should be with us before Xmas) b) flow rates from Plat (which we should hear about shortly) and c) whether the oil price holds up.

Hi Sharesure (and all other long term holders),

I dont post here often but feel its time to break my silence. I bought these back in August & September 2005 and since then have had a total of 115k invested, having bought from 5.5p to 17p making an average of 8p.

I bought purely on the strength of your postings, which when you think about it, was sheer insanity. Up until then Ive dabbled in shares using tips from newspapers and newsletters and have never done my own research. Despite making losses, on the whole I made more profit than having my money in a bank or building society account. I joined advfn in August 09 having seen the odd reference to it here. I havent posted there yet and couldnt use the same nickname as here as it has already been taken. My reason for joining the other one was to get a different perspective as I was seriously cheesed off with the shareprice at that time.

I agree with the comments here and there about shares being ramped by people for their own gain with potentially devastating effects for those who then lose out when the bubble bursts. Ive been equally hacked off by those who continually slate a company for no other reason than wanting to give a contrary view. I am aware of shorting and appreciate that is also a motivator.

Anyway, its nice to see you posting here more often which may be a sign that you have renewed faith in the company. Strange as it may sound it was the other board which persuaded me to stick with this share. I couldnt agree more with those who say that people hang on to shares in the blind hope that the price will come good in the end, rather than sell and reinvest. My reason for not doing that wasnt so much about pride or stubborness, rather it was the fact of not knowing where to put my money to recoup my losses and what if I ended up losing more?

The last 2 months have been a bit of a rollercoaster pricewise but Im pleased to see that the signs are now looking good for the future. Theres been talk on the other one and a bit here about how people have target figures etc about their investment so here are mine. For personal reasons I had to sell half my holding last month, at a loss, to provide a loan to a relative. If I had been able to hold on until now I would have sold at an even price. Anyway, as far as my remaining holding goes 10.2p is my breakeven price and 15p is breakeven plus recovery of my loss. Bearing in mind that Ive had 115k invested since August 05 Ive also worked out the loss of interest by not sticking the money in a building society bond or something from then until last month. Therefore 17.5p is breakeven plus recovery of loss plus loss of interest @ 5% per annum, 21p is b + r o l + l o i @ 7.5%. However, I look forward to my loan being repaid next summer and hopefully AMER will still be in a position where Ill be happy to reinvest. In the meantime I wonder how many of those targets will be reached?

Apologies for the length of this post and for boring you, but the main reason is that I wanted to say that your recommendation for this in 05 does look as if its going to bear fruit.

As an aside, youve got it right on others too. I made a tidy profit earlier in the year on IPL because of you!!!! I also have some money, nothing like AMER, invested in TAN and SEO currently at a loss, but I cant hold you responsible for those recommendations!!!!

Out of interest, are you a poster on advfn under a different alias? If you are I think Ive worked out your nom de plume!