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.

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!

annibd well done for sticking with it-I bought a fair few when it was chaco but sold out for a 10k loss about 2 years ago. I'm now back in for a few as hopes are rising and again thanks to sharesure and posters on the other side. This is the friendly banter board but you'll learn a lot more on the other side so I visit for fun. Good luck you deserve it for your patience and the amount you've put in!!

Annib, you and I are much alike, I too read with interest the comments from others and have learnt the hard way to draw my own conclusions. SEO is a classic ramp at the time by some and if you don't read between the lines get caught and left holding on in hope for better times. I don't fully understand the mathematics of a company but am glad to read posts from others who do and after 5 years of dabbling have learnt a lot from the likes of Cynic and Niceonecyril plus others. I've made some bad calls but on the whole have made more from investing than saving. So keep reading but beware they don't always tell you everything till it's too late....lol. BB

anniebendod
What a wonderfull post.

Anniebod, At the start of your post I thought that i was going to be held responsible for your losses. Thank you for not doing that. All of us, and there were quite a number on both this B/B and the other (I used to post on it but don't have the time these days + I know less about this company's ambitions than when it first metamorphosed into its current guise, although a moot point whether that was worthwhile anyway). I am still in this company in a fairly big way, having bought some more blocks of shares at sub 6p and just above about 6-8 weeks ago and do think that it will now bear fruit. 4 years on I am less impressed with whizz kid geologists after their totally wrong prediction on Primavera - that was meant to be 400mb - I guess it was but it was saltwater!
On a personal front I hope, and don't expect, that we have to wait that long for your break even sp and for this to go well beyond, but at the present time the company needs to re-build confidence after the Primavera debacle.

Hi Sharesure,

Thanks for your reply, there's no way I could hold you responsible as it was ultimately my decision to invest. Let's hope that Primavera was a one off!!!

Hi moneyplus, Balerboy & capetown,

Thanks all of you for your kind words.

I have spoken to an analyst- a guy called Dick Bradley. He is up to speed on Amer and quite frankly he has told me to stick with it just on the wording of the latest RNS from the company.

All reports bode well for the layer log results and hopefully once released by Friday we shall leave 9.5p way behind us.

Now I see we have some kinda result for Fenix..
Having read all the updates again, I think we have
5, yes five showings from the target sands ie the
drill @ 46 deg. In addition we also have several
Oil shows on the vertical drill, these are being analysed
over the next few weeks.

if we look at the target depth area, JW has run a 7inch
liner, he expects to find commercial oil at all 5
horizons!! remember Alea has only a 5/8ths hole and
has produced 500 plus bopd. we have until mid feb
to decide what to do here and its interesting to note
they have NOT let the rig go.

I think by year end we will know what we have
and may well be producing 2000 bopd from Fenix alone.

M

Level 2 has strengthened a tad this morning from 2 v 4 to 4 v 2 - on low volume

Today's Express:
"Suggestions that a bullish update was in the pipeline boosted South America oil and gas group Amerisur Resources 0.13p to 9.5p."

10pence now. Looking good. More to come, I sense.

Certainly hope so.
2517

Decent volume.

Interims due Dec.
2517

Intrims will not be exciting 2517

I agree, but further news may well be, although it wouldn't be a surprise if news were earlier then the interims. Been a fantastic ride since august.
2517

happy Days!!!

Nice to hold at 10p, good for next week, hopefully news then.