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.

Jamie , connect me through moneyam .... and i will give you my email address.

TFC - as you probably know, John Wardle choses his words (and his numbers) carefully. He has a good idea about what he's got but will not announce anything until he is 100 per cent certain. (Or 110 per cent, as people tend to say these days).
I suspect he will double/treble check everything. GC once joked that JW would not give even him "guesstimates", and that he held his cards close to his chest. Having said that, I agree with your main points and do feel, sometimes, that we are kept waiting longer for information than is necessary.

you are quite right of course BWD -twas merely a case of my trading instincts overcoming what in this case happens to a long term investment strategy and manifesting itself as impatience .Qiute temporary i assure you . Rather a Chairman or CEO who only shows his/ their hand when the game is 100%% done and 110% dusted than one such as Kevin Foo of VOG who a few years ago, prematurely hailed great success with the drillbit on a lead on the west medvezhye prospect ,only upon appraisal to be proven totally wrong / bit late by then -on the back of his statement s/p rose from 40p to 160p, and upon appraisal, back again double quick time / now trading at 3p ish . Once that CEO/ shareholder relationship is soured its doom ! .As reg Amer s/p . -very little divergence this past month or so from 16p suggests 'Shares' chartist shorter has done his worst. Had we not been told otherwise i would have been convinced the mkt anticipated a placing on the cards at 16/17p .( surely at some time in the next 6 months a placing will be essential - surely)- But lf JW and GC think we already have enough to impress without further drilling then we can expect some exiting times ahead. ./ until then back to waiting and watching .

i repeatedly keep telling myself to buy when bid /offer reaches 15/75p/ 16p but on every occassion i dont act so today when that was the case i bought a few more @ 15.95 proving Lev 2 is worth while for both trader and investor alike.and not only traders esp daytraders and t+10,15,20 players

..

TFC, not received your mail via moneyam yet. ..... p s, sold a few of these when they were 19 p +

From today's FT:

Amerisur Resources, the oil and gas explorer in Paraguay and Colombia, slipped 1.5 per cent to 16p amid talk it was looking to raise about 20m with an equity issue.

Thanks BD and TFC.
Although I have not seen the article, Shares mag is apparently recommending AMER as a BUY at 16.25p. Some volte face after suggesting it was a short just a couple of weeks ago.

bwd, Shares were exploiting the t/y/e likelihood of profit taking unsettling a few more nervous shareholders and producing an exaggerated drop in sp. It didn't materialise because as fast as anyone dribbled out stock it was absorbed. I suspect we all know where thos shares went. I doubt we have very long to wait for the conrmatory news on reserves etc. - looks like a few others are thinking the same.

.

SS Not sure you should be presenting that tonight!!

ML OK - just to be on the right side of things although I don't think it was embargoed as it came to me from an open source.

Am surprised they didnt announce it today then, maybe wait until all the bids are in and counted!!

S/sure. Yes agree. Can't comment on #2049 though!... hmmm...?

S Sure the cats out, its all yours!!

From the FT.com
Amerisur Resources added 6.2 per cent to 17p on talk it had successfully raised 17m from an equity placing.

M/L stuck for time at the moment so will have to put comments later; if anyone else can in the meantime that would be helpful. Highlight that stood out was 6,750 b/d in 2011 at c$60+/b profit, but there is lots more. My money would be on a bid emerging fairly quickly on this one as Paraguayis in for nothing which is unrealistic. The Placing is at a price to be fixed once the book has been built by Thursday so it should be comfortably above the current sp.

Placing is being done Via RBC and Astaire. There are two days of presentations
that started yesterday. The bid results will be announced Friday. I see this as a way of
getting the best poss price for a placing.

dont forget the last time they did some presentations the SP went up 6 fold over the
next few days, if this were to happen again then we could be looking at a price of
40p within weeks. Knowing what they are proposing to do with the cash that
will not surprise me!!!

This is what they want the cash for:

Proposed equity raise of US$20mm plus US$8mm existing cash in addition to internal
cash flow required to fund:
6 well exploration and 3D seismic programme on Platanillo block
2 offset wells and 2 further appraisal wells on Iguasa and Isabel on Fix block
2D seismic programme on San Pedro block in Paraguay to mature prospect
inventory

Interesting to note that the top 5 inst hold 45.9% of the shares

OK, ta. Mystery solved. Good to see they have finally revealed the eight-wells objective for Platanillo.
Production figs for 2011 are impressive - circa $140m profit/year. Can't imagine yet how that would be reflected in the sp.

Prob down a 1p Dave!!!

lol

You never know. All down to JW. I'm sure he'll do a good job.