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.

Tudwick, have answered your queery on 3i board.

Nothing really new in the prelims then.
Good solid company now with cash in the Bank
and Capex being covered by Oil production,
what more could we ask for. just sit back n relax now
knowing that this is going to grow n grow. QED

M

Hi ML. Agree with the above, apart from the "nothing new" element. I was pleased to see figures for Platanillo production for a start. A modest 250bopd at the moment but it's very likely to be cranked up considerably this month. At current rates, production is worth circa $4m/year but I would expect that to double, at least.

There is also the revelation of the N sands which could be linked to the much bigger fields over the border in Equador. Now AMER are going to look at the geology again and come up with revised figures by the end of Feb. At last they are free to exploit the block as they see fit without having to get approval from the ministry at every turn.
All good stuff, and on top of Fenix you cannot help but feel good about how well things are progressing.

For anyone who cares to look, this update was written with flashing neon lights.

BWD

Oil is flowing at 250bopd, i think we all knew that was the min figure they
would produce until we get the Enviro licence, that is scheduled for this Month.


As far as the N sands, we were told of them back in 2008.

"There is very signifigant upside in the field, both from our data and direct analogues to the South in Equador".

I took that to read the same as:

"There is also the revelation of the N sands which could be linked to the much bigger fields over the border in Equador."

But whichever its sit back and relax time!!!!

M

ML - Ah, yes, it's coming back to me now. The memory banks are not what they used to be. Certainly the enthusiam of JW/GC made it feel fresh; and we do have have a schedule for important developments at Plat and Fenix. Feeling relaxed too.

any one else feeling relaxed - Tony ??

Much more of this and we will all be falling over !!

Yes, I'm chilled.

For BWD, here are a couple of pages about other companies that refer to the 'N sands' as per your post #1621.

http://www.oilvoice.com/n/Gold_Oil_acquires_20_Interest_in_Onshore_Azar_Block_Colombia/9b1042c0.aspx

http://www.rigzone.com/news/article.asp?a_id=82121

LR2 - thanks for that. Will have a look.
Cheers.

Have been trying to say on this thread that AMER is going down. Quite happy to be out. Suspect around 8p will be a support.

Why 8p; why not 7p or 10p?

gut instinct was 7p but the charts suggest about 8.5p.

Dealer, so the buyer that bought a further 8m at 10.6p has finished hoovering up what is available? I don't think so.

It's only my instinct and I may well be wrong.

However, I've no idea where you get your info from. All I know is when I sold out, on the 'trades' above it showed as a buy.

We'll know soon enough since if that stake is increased then it will need another RNS in the next day or so - unless of course they 'forget' to notify which seemed to be the case on the Rex Harbour stake announced recently.
As for determining which are buys and which are sells I don't think that's possible with this site's system because of the time lag and sp trading range. I don't bother anyway except that the 8m trade had to be a buy otherwise the sp would have tanked. There were plenty of sells to have aggregated to fill an 8m buy order, plus plenty of opportunity to mop up other stock where some may have been closing out positions ahead of the xmas break.

Dd,

Looks like your instinct was indistinct.

KOD.
2517

lol. I just can't work this market out. But nothing seems to be going up that I can see. I'm afraid I'm still not convinced that it isn't MM playing games to try to get you to buy back in. The truth will emerge in the New Year when presumably there is going to be one hell of a surge one way or t'other.

For the moment I stand by what I say.

Morning all. I see the Inst presentations of last week
has had some effect today. I expected some to SHELLout
on a few today!

We are now approaching 100M Market Cap so we will come on
others radar as well!!

M

sold half, in at 4.5p so picked a winner at last and remainder in for free.
merry christmas and good luck to all holders
alex

Amerisur has today moved to being a SETS traded stock - a sign that greater liquidity is anticipated and that in turn implies the mgt expect the market cap to be above 150m fairly quickly.

Certainly I seem to have been proved wrong in the short-term but the graph doesn't have a 'real' feel to me. Maybe someone is building-up a stake or MM are racking-up the price for a reason but I still think in 3-6 months this will be well below where it is now.

Good luck to holders.