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.)

b>



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.

jkd

re - hat off

There is something on your post that tells me... you may feel a bit of sorry for the past!

The MACD is trying to become positive on the cycle of UP and DOWN
RSI bouncing from oversol position as is Stochastic
With the 3 Indicators bouncing from their lows lately and at the same time, this is a positive sign for the moment being ( short term )

Glad they've let you back on mrsi, but TFC don't let this thread degrade as the lloyds thread did.
Regards BB

I let myself in, I just had a pause posting at - money am -
"but the vultures are ciclying around once again" ,
but maybe there is no roten meat around for their empty bellies (pth)

Never two charts the same, though the same EPIC - AMER

Good night and sweet dreams

MRSI

Your interpretation and use of the RSI indicator is incorrect and misleading. If you're going to ramp stocks at least try and remain sympathetic with the truth. If you continue to misrepresent TA, I'll tell you so, simples.

what a wind up merchant. yes i do fill a bit sorry for past
sorry i am unable to find MRSI is unable to accept he is back and unable to accept the
forgiveness and kindness of us and others in allowing him back. he clearly believes it is his entitlement. maybe it is. live and learn. some can't understand . forgiveness? what do we get in return?
regards
jkd

just re read this thread, what am i replying to in above post? am i imagining it? seems so.
what happened to original post? and no edit? did i imagine it?
regards
jkd

i tell you this i definitely read the word fill , (for feel) i know what i know
regards
jkd

Yuff . YOU are totally wrong !! .lt is not at all to absurd to compare the respective destinies of AMER and CDS ..What with AMERs Carindeyu block in the Parana basin on the Brazilian/Paraguyan border being adj.to an already drilled and producing well on a block held by CDS ( which earnt it a j/v with BIG players Petrobas). it is considered highly likely oil will be found on the Amer block.had the board had the bottle to make this their first project the story would be so different . Petrobas are convinced this area is hydrocarbon rich hence they are spending big bucks here. Personally i know Amer have insufficient funds now to drill this block what with current commitals. . . NOW considering how much Amer make of this fact in both presentations RNS and comp. literature.l it is a very valid point considering perhaps 2p or so maybe factored into current price. .....FURTHERMORE while the current board are not like the chaco board of ignorant ,vacilliting worthless bums.............they are far from the business gurus you paint........................................................................................................................................................................................................................................................................................................................................................................................................................................................................DAQ ,,Mefiez vous des apparances....l know you !!!..ssheeeesh ....l recognise your english style.-the syntax,the prose, the words . you are that damn intrusive,grovelling, pakistani who plagued me a few years ago. You and that fat black thing you share a flat with in south London . You have grown up havent you?? and with it has grown your gaul abd familiarity. As it happens i am currently shorting approx 30 stocks with AMER being bit one small play. And as if i would even dream of considering my persnal wealth/ earnings with a prol like you Now do one or ill set the hounds on you !.

Let's focus on the stock. Much more interesting than all the waffle. Interesting to see the sp have a little blip upwards this morning.

TFC: Hope very much your other 29 shorts come good.

Got to have the legs for shorts.

TFC
vous des apparances....l know you !!!..ssheeeesh ....l recognise your english style.-the syntax,the prose, the words . you are that damn intrusive,grovelling, pakistani who plagued me a few years ago. You and that fat black thing you share a flat with in south London . You have grown up havent you?? and with it has grown your gaul abd familiarity. As it happens i am currently shorting approx 30 stocks with AMER being bit one small play. And as if i would even dream of considering my persnal wealth/ earnings with a prol like you Now do one or ill set the hounds on you !.


Now theres a case for reporting to the race relations for starters. Such crudity when TFC is put in his place . I suggest that so many jobs in such a short career spells abject failure and an inability to get on with co-workers. You say personally you know Amer do not have the cash to drill the block. How do you know? Dont make such silly statements unless you can substantiate them. Amer have 10m in cash and producing oil and selling it as I write. So what do you know that Amer in their presentation have declined to say TFC?

Nice steady increase to-day - despite the children being on half-term and playing on this board.

yuff

You know he is really portugese!!!!!!!
looks like word is getting out re:testing

SORRY YUFF the latter paragraph was meant in answer to nas daq s personal attack ....not aimed at yr good self ,,,,,,,,,,,,,,,, nice bit of volume reg amer / buys oitdo sells by 2-1 so desrves its inc. in bid/offer ...once again tho in a trading envitonment where all oiles are up ..........not unassisted by big rise in d/j yesterday. ........

Just a reminder as to how n when i see things.

Platanillo:

Structure evaluation report due
end Feb 2010. Will show
significant upside in the block
Geotechnical study due in Feb, to incorporate the Extension of the Victor Hugo Field into Plat Block! Prob combined with the above.
This minimum programme for 2010
consists of producing the wells at varying levels of injection pressure.

Fenix:
2nd phase expires 21th Feb
355ft of Target sands. Testing underway. Results March.
35API oil from deepest sands, no water or Sulphur ie light sweet crude.
400BOPD initial natural flow rates
expected.
2nd well to be drilled immediately after testing Iguasa, expected 5/03 spudding
Derisk of 2nd prospect at Cashira


Paraguay:

Geochemical survey results in February.
2d survey in 2010
Drill in 2011

TFC

Plse have a good read of the Chairmans statement below.

Surely after reading the potential you will close your AMER short???










Chairman's statement




Overview




This period has seen very significant progress for the Group. We have established ourselves as 100% owner of our substantial Platanillo block, which is now producing from two wells. Further potential will continue to be realised in the coming months as a result of studies on the block.




On the Fenix Block, we have also retained 100% ownership. Following the drilling of our first well Iguasa-1, data interpretation demonstrates significant potential in the lower zones where we believe we have substantial reserves of high quality oil. We have also encountered substantial sands at shallower depths. Significant shows of oil and gas have been observed in these zones, which are now an important additional objective, to be evaluated shortly.




Following very constructive meetings with Government officials held in Paraguay in August 2009, we have completed further geochemical work with results due in early 2010 which we believe will demonstrate solid prospective structures in a basin which has generation and migration. We anticipate the interpretation of that information will continue to confirm four leads with unrisked potential reserves of 900m barrels of oil.




We are currently generating positive operating cash flows at Platanillo, of which we have 100% interest. These cashflows cover all the Group's operating costs while net cash balances remain robust. We are excited about the initial testing results at Fenix, which we are currently evaluating with a view to establishing production.




Operations




Colombia




Platanillo Block - Amerisur 100% interest




The Platanillo Field, located in the Putumayo basin, Colombia is now 100% owned since our Colombian subsidiary, Amerisur Exploracion Colombia, acquired the interest of Ecopetrol SA. The assignment of interest was approved by the Agencia Nacional de Hidrocarburos (ANH) in September 2009. Amerisur, which has been operator of this contract since July 2008, declared the commerciality of the field in June 2009, and in October 2009 submitted to ANH the Exploitation Area which the Group considered should be retained for commercial production, together with the required Exploitation Plan. We are very pleased to report that the area requested has been approved by ANH. The contract now consists of an "Exploitation Area", which covers the Platanillo structure as defined by our exploration works to date, together with a protective border. The Platanillo block had an area of 14,203 Ha, the Exploitation and Protection area enjoys an extent of 10,341 Ha.




Post period end, we successfully completed the temporary contractual and licensing arrangements necessary to re-establish production in the Platanillo block. As such, we placed Alea-1R and Platanillo-2 on production in October 2009, importantly generating cash flows for the Group. Total current production is approximately 250 BOPD from both wells. So long as well behaviour is satisfactory, it is planned to increase the injection rates and consequent production once the Exploitation Environmental License is awarded, which is expected during December 2009. The Group has made great efforts to seek efficiencies and economies in the operation of these wells, which has delivered good results. At current production levels and oil prices the Group is cash flow positive.




The Group continues to believe that considerable potential and valuation upside exists in the Platanillo area. Now that the contractual position, in particular the commercial area that we own, has been confirmed to our satisfaction, we have commissioned an integrated geotechnical and petrophysical study of the data within our field, with a view to enumerating the potential found. This study, due to be completed at the end of February 2010, will incorporate data not just from within our own block, but will also benefit from a wider, more regional understanding held by the consultants leading the project. A major target of this study is the formation known as the "N" sand, which although as yet untested in our field, is very well developed in the Platanillo area. We believe it merits further consideration, since it is one of the principal producing horizons in the Oriente basin of Ecuador, including in the Victor Hugo Ruales production field, which shares common geology and is immediately to the south of the Platanillo block. In summary we believe the study will assist us to deliver significantly enhanced reserves within the contract area.




The contractual phase of this contract is now "Exploitation", and as such the only work commitments are those included in the "Exploitation Work Programme". This minimum programme for 2010 consists of producing the wells at varying levels of injection pressure, while perfecting surface and water handling systems. The Group is free to perform any additional work as it sees fit.




Fenix Block - Amerisur 100% interest




The Fenix Block is an area of 24,117 hectares located in the Middle Magdalena Basin of Colombia that has been a prolific oil producing area for many years, with discovered reserves of approximately 1.9 billion barrels of oil and 2.5 TCF of gas in over 41 distinct fields. The Group holds 100% of this block through its subsidiary companies.




Amerisur received confirmation from ANH that the termination of the second phase of the Fenix E&P Contract would be extended from 11th November 2009 to 21st February 2010. This extension compensated a delay caused by negotiating certain terms of the environmental licence with the Ministry of Environment (MAVDT) regarding specific environmental issues.




The Group was pleased to spud its first well in this block, Iguasa-1, in October 2009. The well was drilled both on time and within budget, despite significant time spent controlling influxes of oil and gas. Following the encouraging indications observed during drilling, and from the quick look of the electric log data, the Group committed to set and cement a 7" liner over the potential reservoir intervals. Detailed interpretation of the electric logs over this section indicates 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. 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. An excellent quality, 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 Group considers merit further investigation. The detailed interpretation of the logs demonstrates significant production potential from these lower zones where we believe we will have substantial reserves of high quality oil.

Given these excellent results, and the scale of the testing required, the Group 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 considerably reduce the costs associated with the testing. It is hoped to award the contract for the new rig in the last week of December 2009, with operations commencing during January 2010.

In addition to the potential reservoir sections found in the lowest part of the well, the Group also encountered substantial sands, with an apparent net thickness of approximately 205ft beneath the first fault system from 980 to 1,295ft. The electric logs over those sections indicate that the sands are hydrocarbon bearing. Significant shows of oil and gas were observed while drilling those zones. We continue our analysis of these sands, in particular their structural setting, to determine the impact their presence in the La Tigra area may have on other plays and prospects within the block. The Group has also decided that the second exploration well will investigate these potential reservoirs. It is hoped to drill that well once testing and intervention work is completed on Iguasa-1.

The drilling of Iguasa-1 completes our contractual commitment for this phase of the Exploration and Production Contract, which, as mentioned above, terminates on 21st February 2010. The work commitment for the following phase, which has a duration of 14 months, is an exploration well. The Group considers that the exploration well into the upper fault zone would be sufficient to fulfil that commitment.




We expect to give further details on reserves as we move through the testing phase to evaluate the various sand intervals, in both upper and lower sections. It is worth highlighting that the original pre-drill reserves estimate only considered the lower section sands of the Iguasa prospect with a potential of between 6m and 30m barrels. This will be re-assessed and re-risked in the months ahead. We would like to remind shareholders that there are two further prospects and one other lead on the Fenix Block. The results so far validate our confidence in these prospects, which are significantly de-risked by the success at Iguasa. The impact of the presence of the upper sands in the Iguasa area is now being evaluated, since it could have important upside impact on both the risk and potential reserves of the Rio Cachira prospect to the north.




In summary, work continues in our exciting new opportunity, which should bring encouraging news for shareholders over the next year.