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.

From the Times:

Amerisur Resources, which is looking for oil in Colombia, was chased p higher to 19p amid rumours that a solid drilling update from South America would be released before the end of the week.

http://business.timesonline.co.uk/tol/business/markets/article7064693.ece

Last paragraph.

Ta to LR2 on another bb.

17th March 2010



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



Operations Update

Isabel-1 spudded

Iguasa-1 testing to continue subsequent to Isabel completion

Platanillo major upside identified - work programme in preparation

Encouraging phase 2 geochemical results in Paraguay



Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide the following update on operations in Colombia and Paraguay.



Fenix Block, Colombia

The Company has spudded Isabel-1 adjacent to the Iguasa-1 location. The first casing string has been set at 305ft, and drilling is underway using the Latco-2 rig. Isabel-1 is designed to explore the shallow sands encountered during the drilling of Iguasa-1. A pilot hole will be drilled vertically to approximately 1,250ft, logged to define the required trajectory, after which the pilot will be plugged back and the well will be drilled directionally to pass through the prognosed sands in the most advantageous position. The well is expected to take approximately three weeks to drill and prepare for testing. Final target depth is estimated at 1,850ft measured depth.



The testing of Iguasa-1 has been temporarily suspended pending availability of equipment and chemical treatment systems. Whilst the porosity and permeability within the general matrix of the reservoir are not changed, during testing the near wellbore permeability of the reservoir formations was impacted by the mud fluids used during the drilling process. As previously reported it was necessary to use a mud weight of up to 14.7ppg (pounds per gallon) during drilling. In addition, in the initial stages of the testing programme it was required to further increase the density of the workover fluid to 15.6ppg in order to control gas levels within reasonable operational limits. The reservoirs of the Middle Magdalena Valley are prone to this problem, the effect of which is to obstruct flow pathways in the immediate vicinity of the well bore such that the fluids contained in the rock are impeded from entering the wellbore. This is common within the basin, where proven techniques are used to address it.



The Company has designed a remedial programme and the required resources are expected to arrive on site within three weeks, following which testing of the well will continue.



Platanillo Block, Colombia

The commercial production from the wells Platanillo-2 and Alea-1 continues between approximately 350 and 380 BOPD within an attractive pricing scenario as a result of which the Company is continuing to generate positive operating monthly cashflow. Following the grant of Exploitation status over 10,341 hectares of the block, the Company has now received the encouraging results of the integrated study relating to appraisal upside within the Exploitation area. This study, using regional knowledge and experience acquired in nearby fields, has identified multiple opportunities for reserves enhancement and has also given significant further understanding of the currently productive areas.



The study was performed in two parts, the first a petrophysical analysis of existing well logs in the area which has indicated with a high level of certainty that, besides the current production from the Lower U sand in Platanillo-2 and Alea-1, producible hydrocarbons are located in the Lower U sand in Platanillo-1, in the Upper U sand in Platanillo-2 and Alea-1, and in those wells at the N sand level.



The N sand, although it is a principal producer in nearby fields, has never been tested in the Platanillo block, and demonstrates excellent petrophysical characteristics in the Companys wells. In addition the B and T formations display strong prospectivity.



The second part of the study was an integrated analysis of the seismic model. It is now commonly accepted that in this part of the Putumayo basin the successful oilfields exhibit a combination of both structural and stratigraphic trapping, due to the braided channel nature of some of the productive formations. The 2D seismic data available at Platanillo are sufficient to demonstrate that the field shares strong similarities with nearby fields in that respect; however the current 2D image does not provide sufficient data coverage to allow the channel systems to be fully identified or mapped. What is apparent from this work is the strong similarity with nearby oil fields and the need for more complete seismic data in order to quantify the full field potential, given the size of the prospective area.



San Pedro Block Paraguay

The specialist consultants have now completed the interpretation of the second phase geochemical acquisition in San Pedro. The results are in line with the initial set, displaying strong anomalies of thermogenic hydrocarbons. In particular, the anomalies of Pentane gas, which is rarely seen in these studies remained very strong, and continue to indicate good coherence with the structural trends identified from reprocessing and analysis of existing seismic data. Further geological work will now be carried out, with a view to new 2D seismic being acquired based upon that study.



John Wardle, CEO, said:



"I am pleased that the drilling of Isabel is going well, and look forward to re-entering Iguasa-1, and so demonstrate the potential from the deeper section of that well. In addition, the recent work on Platanillo has confirmed our view that this block has very great potential. We are currently drawing up an accelerated work programme whose aim is to secure that potential for the Company."



Giles Clarke, Chairman, said:



"I am pleased with progress on the Fenix block. Our work on Platanillo is most encouraging and San Pedro continues to impress us with the quality of the geochemical data. I feel that our portfolio of opportunity is now maturing, with very exciting results in store. I look forward to updating shareholders on the results of our work in both Colombia and Paraguay over the coming months."



Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 25 years experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Why has this effected the price so much?

expectation ran ahead of reality. It will recover - probably not today - but it will

With buys roughly equaling sells its the MMs that have the answer - as usual.
Let us all hold tight - I agree with bhunt 1910

Stating the obvious but until folk see actual predicted reserves quoted in millions of barrels they are nervous. A careful reading of the RNS shows that the delay in providing that information is because of positive reasons. That doesn't suit day traders but should give shareholders who can look beyond an immediate settlement timescale a lot of comfort. I was expecting some other news today as well but maybe that will appear during the rest of this week.

Sharesure: yes, I would have liked to have seen some numbers today. Looks like we had a holding statement of sorts today - but the sp has behaved as if it were a disaster. Easy money for those buying in at 16/17p.
I've only managed a quick look through the RNS; I wondered what are the positive reasons you refer to. Is it re the gas levels?
D

bwd, apart from suggesting people read what has been written, and then draw their own conclusions on why would the company then do what they are planning to do if they didn't have a strong inkling that that will pay off, drilling Isabel 1, stronger pressures on Iguasa 1 to sort out, extra 10,341 ha on Platinillo with multiple prospects to include in future drilling programme are positives in my view, but just involve more patience.

As for Paraguay that seems to have increasing potential. I had thought that a collaborative deal would have been concluded by now (the mgt went to South America recently).

Mais c'est la vie .Only had a brief browse at RNS ..Not ideal news but neither catastrophic-.sounds like a heavy body of water has been encountered which with contemporary tec should not prove unsurpassable merely time consuming,costly with an element of danger in that the remedial treatment required can prove destructive to the very well itself eg -flooding ...lf positive news of rectification is forthcoming within the designated timescale l cant see this news causing a collapse in s/p .

Sharesure: thanks. I thought maybe I'd missed something in the technical jargon. I can understand why some might have seen today's RNS as a damp squib (we'd all hoped for a little more) but a 15 per cent drop was an over-reaction, to say the least. Quite happy to see things develop from here, and for the sp react accordingly.

The second Directors Options' RNS this afternoon may say a little bit more about why the sp was not supposed to get too far ahead at the moment? The net result of the change is less dilution for us. I would have preferred a higher exercise price.

Why don't they say what the performance conditions are? Surely revelant?

TFC-you are wrong-a heavy body of water was not encountered. In the whole drill programme NO water was encountered,hence the rise to 20p+

Reread the RNS and you will see what the problem is-self made and an error that can easily happen and easily rectified with the correct equipment which will be on site in 3 weeks.

Sivad,

Maybe that wasn't the 'major announcement' you expected; or maybe it just wasn't the major announcement?

yuff,

your wrong - he said " sounds like a heavy body of water "

And when did it reach 20p + today ?

Guys

It went down for a reason today and that's because it went up from this level on the hope of a good RNS which it wasn't.
People were expecting numbers which we didn't get, so we are in the same position as we were at the time of the last rns although we have spudded an extra well. The sp dropped to 12p previously with the same information in the public domain who's to say that can't happen again.

l do apologise Yuff et al ..ln a hurry. l totally mis-translated the first RNS of the day. Upon re-reading it several times l appreciate this was a case of human error. And what an error ! Morelike gross personal negligence.l bet the chairman and CEO are seething .What Wardle is saying, and quite simply, is that the mud weight,(mass per unit volume of a drilling fluid} which controls the hydrostatic pressure in a well bore ,and prevents unwanted flow into the actual well , was inappropriate .Now if my memory serves me right , the normal specific gravity is 9/10 kilopascals per metre or 0.5 lbs per square inch per foot . ).Now excessive mud weight has clearly occured here and can cause a plethora of problems now and even if rectified , in production stages as it as it causes lost circulation by propogating ,and then filling the fractures in the host rock.the mud weight also protects a collapse of the casing and the open-hole ..Now without wanting this to turn into a book as mud weights are very difficult and tecnical to explain at the best of times -Yes - even to such an esteemed ,errudite,well informed group of people as your goodselves but l dont believe the ramifications of this have hit ANY of you .. Have they ? .....l can picture it . ln their damned hurry to deliver the goods they have simply used an excessive mud weight and caused who knows what ? ...Thats a rudimentary error and WHAT the RNS should be about !! ......oh sod it ,,,you will think what you want regardless of what anyone says - and no Yuff it is not as common occurance as you are saying or otherwise equipment needed to rectify the situ would be on site ; ,,,,,,,,....slowly slowly catchee monkey as old oil adage goes... ..lts a simple fuck up; but not the end of the world for Amer..........Far from it .....................Niether long nor short but if i was 100% honest and bearing in mind my kharma ,l wouldnt sell ...................................................................................

real beef lies in 4th statement of the day upping the price paid by directors from 11p to 15p for a couple of million options { each :-))..} ,,,,ls this a case of not being seen at a later date to have given them away, or self contrition for fu*** up with the well ?

TFC, The option strike price arguement has been going on since prior to xmas 2009. ie it has nothing to do with mud densities and cock-ups. A number of shareholders. including me, contacted the company complaining that it amounted to directors awarding themselves a guaranteed return (ie they knew then that the sp would have them in the money in a matter of hours because of them doing the rounds in the city). Pleased to see that they have now eaten humble pie and set the sp strike price at a more reasonable level.to confirm that they don't treat shareholders with contempt ;-)
As for where we are now - waiting as ever for actual numbers which can be used to value the company.

Sharesure, you are obviously in touch with well connected parties. Any
idea as to why JW's options, and he had the most, were not adjusted???

M