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.

Sharesure
A good week overall but still waiting for news.

Bit worrying the amount of large (ish) sells going thru so far this morning....hopefully this isn't an early warning sign of (further) bad news about to be announced re. latest drilling

tudwick,you took the words out of my mouth!!,

are these sells all the (in the know)????,very worried now.

I doubt it. This new management team have operated a very tight ship and the number of sells going through are tiny. If there had been a leak - we would have seen a much higher volume than this.

I think this is profit taking - after all they had risen 25% over last weak - and who van blame them.

bhunt,i hope you are right.,just strange that sells took place in a small timeframe,it seems to have calmed down for now .

Ditto, i so hope you are right Bhunt, especially after what us long term holders have already been thru - surely we are due some good news and by god we need it !

tudwick - am a long termer too - bought originally 3 years ago at 6p and went all the way to 18p+ and held all the way down to 6p where I had to unload 75% of my shares cos I got greedy and bought CFD's.

Badly burned - so a tad more cautious this time round.

Likewise, hold various groups of these ranging from 6.8p up to 16.2p and haven't offloaded any to date, probably a dangerous stance on my behalf....so my fingers are crossed that with the new management & hopefully better chances of a positive outcome from these re-opened sites, (although in this field absolutely nothing is guaranteed) I'm hoping for good news to spark up the sp somewhat.
Who am i kidding....

Looks like the lights have been switched back on!!!

about time too... lets hope someone knows something positive, although i suspect just anticipation purchasing...

Far too early to get excited,however yesterday was a worry when all the sells started to come through,we all know this can go either way,so i am holding on to my seatbelt,if youre not in it you cant win it,same applies to loose it.
GOOD LUCK TO ALL THAT HOLD!!

I think that if the step out well had proved to be a duster then an RNS would have come out a couple of days ago. Announcing that the drilling was successful but not being able to say what the flow rates are would have led to speculation - something the mgt has said it wishes to avoid. I think it is fairly safe to assume that they are now testing flow rates and will not announce anything until they can say what those are. That still doesn't mean that this is a one way bet just yet since if the flow rates are useless it's the same as hitting a dry well.
The key followers of this stock in the City still seem to be very positive that this is going to do well.
The selling yesterday was miniscule as is the buying today so until the testing is finished this is likely to be the way things go - unless someone leaks some information - always a possibility with 3 parties involved.

I suppose the results from Platanillo-1 could dovetail with initial news from Alea which has much better odds of success, seeing as it has produced oil before... but may take longer.

I am told evaluation testing taking place as drill depth reached over the weekend.

Nervous waiting period for confirmation of hydrocarbon find.

VERY NERVOUS here.,Then thats the game on this type of stock

The clue to whether or not the drill is successful is not on the intraday price movements,rather it will be linked to volume-based trading on either positive or negative news.

Hopefully, no news is good news.

Amerisur Resources PLC
12 October 2007


12th October 2007


Amerisur Resources PLC ('the Company')

Operations Update

Amerisur Resources Plc ('Amerisur'), the oil and gas explorer and developer
focused on South America, is pleased to give the following update on operations
in Colombia.


Highlights

Re-entry to Alea 1 successful - production and Long Term Testing to
commence during October

Platanillo 1 encounters transition zone and defines limits of field

Platanillo 2 to be drilled shortly to further evaluate structure

The re-entry of the Alea-1 well has been completed without operational problems
using the work over rig Pride 6. The well was flowed at a controlled rate of
approximately 160 BOPD through a 1/4' choke to observe fluid properties (during
initial testing of the well in 1988, flow rates in excess of 500 BOPD through a
9/16' choke were recorded). The crude oil observed at surface has an API gravity
of approximately 32 degrees and zero water. The well has now been closed in
again to conduct sampling and analysis for purposes of reservoir engineering and
assessment of the reserves potential of the field.

The well is expected to return to production and begin Long Term Testing (when
the full production potential of the well will be examined) following the
mobilisation of the drilling rig Pride 17 to the Alea-1 location, as discussed
below. For operational safety reasons recommencement of production will not take
place until after the drilling rig Pride 17 has been installed on the location.
This is expected to be complete within the next 15 days.

Oil production will be delivered to the Santana terminal, operated by Gran
Tierra Energy Colombia for subsequent export.

Platanillo-1, the first new well in a 2 well programme, has been drilled to a
total depth of 8,390ft. The reservoir section was encountered 55ft deeper at the
Platanillo-1 location which is located approximately 2,200m from Alea-1, and
analysis of electric logs indicates that the well might be close to the
transition zone between the oil and water columns of the field. The well has
therefore been temporarily plugged to allow the rig to be released to drill
Platanillo-2. Platanillo-1 remains a potential candidate for a subsequent
re-entry and sidetrack to evaluate reserves up-dip of the current reservoir
entry point.

The drilling rig Pride 17 is currently being moved to the Alea-1 location.
Platanillo-2 will be drilled directionally from that location, towards a
culmination which is expected to be higher on the structure than Alea-1. The
objective of this exploration well is to examine the potential for additional
reserves in a separate reservoir, the upper 'U' sand and confirm the continuity
of the lower 'U' reservoir. Platanillo-2 will be drilled to a depth of
approximately 8,300ft over a period of around 30 days. Subsequent testing of the
well will be performed using the existing facilities installed for Alea-1.

Amerisur Resources Plc holds a 25% working interest in this block under the
Platanillo E&P Contract with the Colombian National Hydrocarbons Agency (ANH).
Repsol YPF holds 35% and Ecopetrol S.A.(40%) is the operator.


Dr John Wardle, Amerisur's Chief Executive Officer commented:

'The initial data from Alea-1 are encouraging, and within the next few weeks we
will be able to test the well to its full capacity. The results from
Platanillo-1 are also extremely important for the definition of the size of the
field at Platanillo, since this firm knowledge allows us to make the best
appraisal and development decisions in the future. With the addition of the
information from Platanillo-2 we will have a very clear picture of the southern
part of the field, which we can then proceed to evaluate through a Long Term
Testing programme.


Giles Clarke, Amerisur's Chairman said:


'The re-entry of Alea 1 is a significant moment for Amerisur, marking the first
oil production in our blocks. We look forward to updating shareholders as we
make further progress in the region.'


Ends


Competent person: Technical information in this announcement has been reviewed
by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 23 years
experience in the industry, having worked for BP, Britoil, Emerald Energy and
Pebercan, and is a trained drilling engineer.



ENQUIRIES:

Billy Clegg/Caroline Stewart, Tel: +44 (0)207 831 3113
Financial Dynamics

Jerry Keen/Rhod Cruwys, Tel: +44 (0)20 7448 4400
Blue Oar Securities Plc




2006 MoneyAM

Not so nervous now,still more clarification needed but amer have found some black stuff!!

Early days, but nevertheless a fairly muted response. Maybe that's because most people will have trouble in de-coding the RNS.