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.

suspect a scam and you're probably dead right ..... directors' options should always be at a premium, not only to encourage them to work better, but also so that if the directors gain, then so do the investors

Good luck for 2010 everyone.

S'sure - illuminating in a positive way, I trust?

Good Morning everyone - and a happy new year to you all.

L2 is 2 v3 @ 15 v 15.75 and 350k v 250k - and holding

BWD - Yes, it was in so far as the tone seemd very upbeat. (All the more annoying that those options were granted at a strike price below the sp). I wasn't told anything that isn't already known about. However I got the impression that Paraguay may feature more prominently fairly soon although those assets cannot be spun off as a separate company......yet.....because that may leave them vulnerable to an opportunistic bid. Meanwhile we are due the confirmation of Colombian reserves so it does look good both short and long term.

S'sure: OK, many thanks. Sounds good. I remain very bullish for all the obvious reasons, especially after the updates of Nov 5 onwards.
Cheers.

In spite of the softer sp over the last few days, someone is still gently buying what they can; must be due an update on holdings if it is the same source?

Nice that you too spotted that and it looks to be continuing to-day HNY

Decent outcome today.

Looks like another day of someone (or more) mopping up the small sells.

I am surprised that the holdings above 3% have not been the subject of a further announcement. Given how near we must be to other news being issued you have to admire their patience in accumulating stock.

SS,

Have just studied the Dec presentation - interesting stuff. Given the company's tendency to conservatism when it comes to releasing information, I would suggest that the underlying message was (and is) very bullish.

Lots of short termers trying to second guess the market and buy/sell within a few pence; however, it seems to me that these small differences are likely to be inconsequential, given the potential for a substantial increase in the sp over the next six months or so.

SS

Given the info in the header about 0.75p per 1mbo, if fennix has proved reserves of the top end ie 30m is fennix alone worth 22p to the share price in your view?

Nothing really new in the presentation but why oh why has
it taken the Co 3 weeks to get this out to us
shareholders, esp as they found time to update
not only the Institutions but also to award themselves
Millions of Options. They do sometimes Piss me
off.

M/L That was the gist of my correspondence with our chairman and I believe that he is likely to be told very soon by a few institutions that that behaviour is unacceptable and needs to be reversed if he expects to command their continued support. In my view, and probably theirs, there is nothing unique that he has brought to the company that many others could not also have done. Remember the sp dipped on his arrival - not add several pence as he was reputed to have forecast. John Wardle is different - he does seem to be unique in that area of the world.

Blackdown and Nas daq - I think that it is a foreone conclusion that the sp is heading north once the reserves figures are officially confirmed.

smacks of being one of frank timmis's prize pupils

Sharesure, did you get a reply off Mr Clarke?

I would be very interested to know what his views are.
you can Email me here if you prefer:

shylock727@hotmail.com

M

SS & ML my e-mail 31 Dec re strike price - no reply an acknowledgment would have been nice. Must need bigger fish than me to get a response!

That's just plain rude for his office to not even acknowledge your letter, even unprofessional if i'm brutally honest.

I had a phone call from him - he was fairly blunt but given my email to him, which was very 'straightforward,' he was bound to be. Apparently he phoned me because he wanted to prove to me that he didn't hold private shareholders in contempt. So he proved that! Other than that he wanted to assure me that all that was said at the roadshows was already on the website ( I have been around the block a few too many times to believe that that always happens!). But he also wanted to assure me that his recent share options award had the full support of the City at the low strike price that he took them at - I have heard differently and don't think that it will be allowed to stand. A strike price north of 25p would at least give him a performance target before he manages to dilute the existing shareholders..

Thanks for your comments.

I am not sure that ALL the info in the presentation was in the public domain, but there was nothing stopping them putting the presentation up on the web page on the day. The very fact that the options were announced the day after still sticks in my throat, talk about good timing. It must be nice to have a 60% profit before you lay out a penny!!!!

M