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.

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...

Required Field - Missed out? - Most of us founder shareholders regard this as just Base Camp being reached, albeit at a reasonable altitude. If the potential believed to be possible is realised then this could have a long way to run. It's only capitalised at 85m. If they start churning out 3/4,000 b/d and confirm P1/P2 reserves of a couple of hundred million barrels spread over Fenix and Platinillo, with long term Paraguay to come, then this sp has to go significantly higher or someone will try to snap the company up cheaply - that would be a financial shame.

SS,

I agree. It would be a shame if the company was sold too cheaply; however, I have a feeling that the current management team is much too smart to let that happen.

May be in a 2/3 years a sale could be very good for long term holders, but not before Paraguay has been thoroughly researched.

Guardian online: "Amerisur Resources slipped 0.125p to 9.875p despite talk of an imminent update."

Amerisur Resources PLC
03 December 2009



3 December 2009



Amerisur Resources Plc ("Amerisur" or the "Company")



Operations Update Colombia



Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide the following update on operations at the Iguasa-1 well in the Fenix block in Colombia.




Highlights

Nine discrete sand intervals below 4,031ft have hydrocarbon saturations with potential net pay true vertical thickness of approximately 150ft

Light, sweet crude oil recovered from drill stem test of first sand interval tested

Eight further sand intervals to be tested

Additional substantial sands, with an apparent net thickness of approximately 205ft were encountered from a depth of 980 to 1,295ft, and appear to be hydrocarbon bearing - testing options being reviewed




The Company set and successfully cemented a 7" liner over the section 3,931 to 5,605ft as planned. Interpretation of the electric logs over this section indicated that there are nine discrete sand intervals which have hydrocarbon saturations which could be sufficient to produce hydrocarbons. This potential net pay has a true vertical thickness of approximately 150ft. The log analysis did not indicate the presence of any water wet reservoirs within the interval. This section comprises the sub-units known as the K, L1 and L3 of the Esmeralda - La Paz formation.

A fluids and pressure test was performed on the deepest identified interval, 5,327 to 5,336ft using drill stem test equipment. This test included three short flow tests and pressure build up periods. 35˚API oil was recovered at surface, together with associated gas. The oil had 0% base sediment and water ("BS&W") and did not contain any identifiable concentrations of H2S. The oil tested is therefore Light, Sweet, Crude oil. The pressure and flow data are currently being analysed in order to plan the remainder of the testing programme in this zone and in the remaining eight intervals which the Company considers merit further investigation.

Given these excellent results, and the scale of the testing required, the Company decided to release the Petrex PTX-22 drilling rig in order to mobilise a smaller rig more suited to this type of operation. This change will reduce considerably the costs associated with the testing.

Additionally to the potential reservoir sections encountered in the lowest part of the well, the Company is also pleased to report that substantial sands, with an apparent net thickness of approximately 205ft were encountered beneath the first thrust fault from 980 to 1,295ft. The electric logs over those sections have been analysed and indicate that the sands are hydrocarbon bearing. Significant shows of oil and gas were observed while drilling those zones. The Company is now reviewing options to test these potential accumulations.

John Wardle, CEO commented:



"I am very pleased both with the analysis of the logs and the results of the initial test in the lowest zone, which has very similar characteristics to the remainder of our sands. I am hopeful that they may all be similarly productive.




"The oil quality is at the high end of the expected range. The quantity and quality of potential reservoir we have encountered is encouraging, and will need a detailed and thorough testing effort over the coming months. For that reason I welcome the change of rig, which follows our philosophy of conserving our cash while delivering best in class results. Although we have still to perform a definitive flow test of the zones, it is apparent that we have considerable production potential in the lower section of the well.




"The sands in the upper section, below the first fault are also very interesting and may represent a significant upside in the block, since they indicate that the prospect we call Rio Cachira may extend into the La Tigra area. In any event, the results of Iguasa-1 at all depths significantly de-risk the other prospects in the block, as well as considerably enhancing the potential of the Rio Cachira prospect.




"The drilling of this well completes our contractual commitment for this phase of the Exploration and Production Contract, demonstrating once more Amerisurs commitment to delivery and compliance."



Giles Clarke, Chairman said:



"This is a great result for Amerisur. We are focused on evaluating this well with a view to establishing production. It was a difficult and demanding well to drill and I congratulate our executive team in Colombia on achieving the well objectives safely, on time and within budget. We look forward to updating shareholders as the testing develops."







Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 24 years experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Positive stuff. This bodes well for the medium term development of the company.

excellent news and high end quality, 2010 is gonna be the big year for amer!

We still need the Platinillo resumption of production and flow rates - that must be available soon?

My layman's summary of today's announcement.
* JW is talking about 17 sands in total: nine in the lower levels, eight in the upper.
* These offer around 350ft of sands in total.
* Some oil has already flowed to the surface under natural pressure.
* the Rio Cachira prospect maybe be overlapping La Tigra - so they could be getting two for the price of one.

If I've got this wrong please say.