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.

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.

Appears to be coming good at long last.
2517

Very quiet over here, considering that a major milestone has been acheived

Daily Express today: "Talk of a positive update from its Fenix project in Colombia boosted Amerisur Resources 0.63p to 10p".

Missed out on this one but good luck to all....fantastic rise...