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.

Agree BWD-this mornings RNS has surprised me somewhat.It reached its depth quickly and with only 9ppg-not 14 or 15. They seemed to have picked up on that point.Also and more importantly if Iguasa is done for and this is a big if-I dont believe it is-we have Isabel 1 now in place as 1. a safety net and 2. an alternative source of oil flow.

http://colombiareports.com/colombia-news/economy/8843-in-10-years-colombia-could-produce-more-oil-than-venezuela.html

l missed that Roly-but i never doubted oil was here in abundance ..Never . What i seriously doubted was the ability of AMER to bring it to market. Some of the past directors and senior tier management including that ignorant, vacillitating. feckless ex CEO were a disgrace ...ln short; Wardle has changed the rules . No room for democracy in the world of oil ..Hes the only reason this company survived . lts public face ..He got the neccassary funding ...But whats even more important is that the very business model..eg the fields Pacific Rubelias have turned from producing a few thousand bblsoe/pd into producing in excess of 100,000 bblsoe /pd, are not disimilar to the very same business model Chaco started but utterly F&&&&& up but which Wardle will exploit . Lets face it BOTH pacific and AMER are loooking in places that have already been identied as oil producing prospects And Wardle has seen it all . No novelty in all this for him ,,,,,,Juste mucho $$ ......

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Simon Griffin, chartist in Shares mag has a sell on AMER with a target price of 8.5p.
2517

2517, on what basis does he rate it a sell ?

Being a chartist he's quoting various retracement levels with the favourite being 61.8% drop to 8.5p. He is also saying AMER have been at these heady levels 3 times previously and then rotated downwards each time losing at least a third of it's value.----- My take is that AMER are a lot further down the road to profitability now and hopefully a significant retracement will not happen.
2517

Don't agree with above...there aren't that many retacements and not to that level, back to maybe 12-14p imo but not as far as 8p.

TFC - I agree with your view on JW. He has certainly earned his spurs unlike the old duffers who ran Chaco previously. (One of them lived in Australia; their visits to Colombia were rare). At least JW lives there and is very much in the driving seat.

I met him at an AGM a couple of years ago. He's certainly not one to bandy figures around to hype things up. In a thinly-veiled reference to the duffers, Giles Clarke said that the days of the share price reacting to wildly exaggerated claims were over. It would instead follow real progress. And so it has.
More to come, in my opinion.

Balerboy-------it's not my view either, but just stating what in print from this chartist.
2517

i began shorting this stock 4 years ago when it was called chaco ,and before that as Gold mines of Sardinia . But the very varibles that persuaded me it was a "SAFE " short " have rapidly dissappeared, if not absolutely gone .For a start Amer are delivering the agenda in the timescale they stated they would .. Amer are on the cusp of several company changing informations coming into state of play to make it a definite short - results on 2 wells - news in weeks of reserves , news of j/v talks , news of Paraguayan interests ( as SS pointed out.), ect ect . Shorters tend to attack companies with very little information in the public domain with a dearth of news to at least pacify or,at least, placate the mkt. . But even Amers chart of 10,30,50.100 ema of 17.15 ,16.81. 16.01 ,and 14.99 respectively, shows it has moved a long long way from bombing to 8p. Do not get me wrong the s/p of a company can become as divorced from nav and true value to the point of absudity There is a very large body of holders @ 16p with stop losses @ 14 and an enormous volume of holders @ the 12p/14p level with SL s @ 10p ..so i can see the Shares guys point of view....l suggest he is working with past variables , the comprimised well being a write off and this leading toheavy selling triggering the domino effect with SL s challeging the next level and so on and so on ... but with so much important data in the pipeline this is a very dubious short

TFC ..... if u r TFC on Yahoo messenger i have sent u an invite.

l shall set it up R ......Yahoo messenger that is..

ok

For those of you who are planning to attend the AGM on 4th August (confirmed by AMER), then Best Western are dioing a special deal if you pay in advance of 81 for B&B (normally 125)

I have booked. There are cheaper options - but it saves all the hassle of drinking and driving.


http://book.bestwestern.co.uk/Occupancy.aspx?availabilityCheck=true&hotelCode=83508&sob=A163

big buy this morning, looks good

well someone disagrees with shares mag chartist suggesting going short of Amer -a nice 6 million tranche bought today; yet in saying that the bid/offer barely changed thus suggesting it was already factored into the s/p by completion of an order placed a while ago but,which,of course, could be attributed to a number of more positive reasons

The short seems to be working

Probably PIs crystallising some gains prior to the end of the tax year.

TFC what do you make of the new tactic of small tranches being placed on the offer to keep a lid on any rise?

Assume you have L2.