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.

A,

Don't think there will be any drilling in Paraguay before 2011, but research into the prospects will carry on through 2010. Maybe a JV re Paraguay - perhaps late 2010 - if the prospects are as good as they seem now.

All, Although what is coming out of Amerisur, and due soon, is all looking really positive I don't think that we should let the Board get away, yet again, with diluting us in order immediately to line their own pockets with an instant profit. I am referring to their second share grab at a discount to market price when they must know full well, or have a very shrewd idea, what they are going to be able to announce very shortly. It could be construed as market abuse, and that is not in any of our interests to have that suspicion surrounding the company.
I would respect and support this Board far more if they granted share options at a significant premium to the current market price. Doing so at a discount amounts might be construed as amounting to corporate theft. I would encourage all to register their opposition to the latest dilution ; it amounts to a significant %.
Apart from that have a Happy (happier!!!!) Christmas.

SS,

As long as the board delivers - which appears to be the case now - I have to say that I am fairly relaxed re the share options.

Blackdown, You are more generous than me.

Blackdown, You are more generous than me.

surely not a prelude for pump and dump as the directors cash in a tasty profit, and then devil take the hindmost?

Time will tell. I suspect not though. Another 3 years or so - that will be the time to exit.

I do tend to agree with you Sharesure with regards the directors, but on the other hand, after such a long wait, am also happy to finally be in profit myself. Here's hoping the good time continue. Happy Christmas to all

2010 AMER may wel be the share of the year-the past week has left most of us breathless.
We have huge potential with expected news flow over the next few months. When the workover rig is in place in Jan I am lookiing forward to OIP numbers. Paraguay,is IMO not factored in to the price yet,and neither is any potential bid. Stakebuilding such as Rex Harbour is also a distinct possibilty.
At times under SETS L2 looks severly lopsided with very few shares on offer.
A good sign for a sustained prise rise in to the new year.

Amer, now that the market cap is over 100m is on the funds radars.

Cant wait for 2010. Slowly but steady has always been the Giles mantra.

yuff - agreed. AMER one of the strongest performers on AIM this year, acc to the Independent today. And it would appear the share still has legs this morning. But this is just the start imo. I'm also looking forward to Jan and beyond now. JW/GC and co have played a blinder.

BWD-all in all this is the only share to own coming in to 2010.
We all know why.
let the newbies do the research and jump aboard the good ship AMER.

happy days have come early.

Watch the graph go ever north.
Cant wait for 2010.

This needs the field reserves figures for Fenix and Platinillo soon - these should be available generally as there are already some significant estimates being punted around following the broker visits prior to Xmas.

SS,

Those reserve figures haven't been punted around in my direction. Any chance of letting us ordinary folk know what they were (on the basis that they are just hearsay, until the company issues a formal announcement).

Blackdown,
I was told by the company that all figures that have been disclosed to brokers are on the company's website. These tot up to a potential of more than a billion barrels taking all assets into account, ie Paraguay as well. I have not been able to access the website to check this out which I need to do first because of the arguement that is currently being had with the company over the latest share options' price which the directors awarded themselves. I know of one influencial City broker, who has some formidable clients in this stock, who regards the strike price as unacceptable. That arguement is set to continue into the New Year and the company may yet have to amend the strike price to a level more in keeping with what the market value of the company would have been post the road shows at the least. I would prefer an options strike price which has an element of performance which needs to be achieved before these become worth exercising.

SS,

I tend to agree re the strike price. I would have thought somewhere around 20p would be more acceptable.

I'll try to access the website.

Also make your point to the company via the website and address your message for the attention of GC. You may find that you even get a response - I did! - it was quite illuminating!

Point noted.

SS here are the totals of Oil potential as per releases.

Colombia: Platanillo 120 MMBO
Colombia: Felix 56-305 MMBO
Paraguay: San Pedro 708-960 MMbls
Paraguay: Curupayty 250MMbls

Total Colombia 176-425 MMBO
Total Paraguay 958-1210 MMbls
Total 1.1-1.6 billion barrels

BD & SS Also agree re strike price have help these for years at a price above the strike price so have e-mailed co with my concerns.

ML,

Thanks. So the Plat figure is marginally above the 900,000 barrels referred to at the AGM!