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.

Wait untill TFC's book comes out ..

Sold AMER @ 18.12 , and will buy back in @ about 17, unless there is a weekend tip in the papers.

As you have told us already.

methinks the fact that preference was given to instutional holders as opposed to retail brokers tells a story in itself../ suggests the latter will be in the open mkt mooching around for stock themselves ; thus further boding badly for those those caught napping while short selling..-..lcarus comes to mind - .and i feel closure of said shorts will be a feature of next weeks trading . While still seeking clarification from horses mouth reg. placing it has been further claimed that offer was oversubscribed by a whopping 5/6 times despite relatively tiny discount to mkt price - furthur suggesting all concerned saw 16.5 as a price to tempting to ignore............

TFC, not disappointed with Amer one bit but I think that the placing at 16.5p will prove to be a steal in very quick time. I accept that the other economic problems may well have meant that we were extremely lucky the Board managed to get the cash at the moment. As another good friend and shareholder on another board said to me last night, when those that shorted the stock prior to the placing need to close out then there could well be a shortage of stock, particularly if we get a further and positive RNS to say that the mud problem has been sucessfully overcome and possibly a higher press profile. The next 12 months look to be fairly action packed.

TFC, seems we had the same idea simultaneously. The 10% available to PI's was 7 times over-subscribed if the scaling back was uniformly handled. Not bad in this market.

From posts elsewhere, it seems possible that further - positive - news may be here sooner rather than later.

TFC_ your post was a better read than "A book at bedtime"

5 May 2010



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



Appointment of Nominated Adviser and Broker



The Company announces that it has today appointed Royal Bank of Canada Europe Limited, trading as RBC Capital Markets, as its Nominated Adviser and Broker.



The Directors would like to thank Astaire Securities for the assistance provided to the Company over the past three years.

Although I'm sure someone is grateful for their efforts today, most PIs will be singularly unimpressed with their first day in the job.

patience BWD ...A little patience ......... Astaire do,and did, their job for those playing in the second division. RBC do a job for those in the first division....and while not in a position to kiss and tell news is not far away that will make current s/p look like a sick joke. .......

That sounds promising.

Patience is my middle name, TFC. I was, however, disappointed by the suggestion that the sp had suffered because of efforts by RBCCM to lever in clients after the placing.

I must admit now that I don't know whether there was any truth in that, and as far as the bigger picture is concerned, it should not matter a jot anyway. I look forward to any updates on progress in Colombia etc.

In my view, the trend here for 2010 and onwards is up.

bwd, These are very undervalued compared with some other stocks. I suspect further news is very close to being announced.

SS: I agree on both points. I wondered if you had a view about RBCCM being appointed broker/nomad.

They wouldn't have got the placing away if the Iguasa news was/was likely to be bad. I reckon SS is right on both counts:sp is due for a re-rating; this will be based on increased production from Plat and prospective production from Fenix.

bwd, I think that RBCCM's appointment is a positive step. I have been wondering whether that is linked in some way to the possible JV partner which they are likely to be lining up for moving the Paraguayan blocks forward. The Board seem to be quite good at keeping what they are doing to themselves (and their institutional backers).
The increasing mkt cap should start putting Amer on a few more funds' radars.

We are going to need a large rise in the sp if the statements re CGT are true. It looks as though the Lib Dems are going to get their way and the rate payable is going to go from 18% to 40%. The Lib Dem manifesto had the annual allowance reduced to around 2,000 from 10,000 - hopefully this element will be ditched.

SS: thanks. I was intrigued that they are Canadian outfit, albeit with a global presence. There's a strong presence in Colombia/L America of Canadian oil companies. Would be interesting if there was a link, as you suggest.
Can't help feeling that some positive news has been shared with a select few, and the rest us will have to wait for it all to be made official. Surely there was more revealed at the placing than appeared in the Astaire report.

BD: indeed. Looks likely to introduced at some point (this year?) It'll stick in the craw.

.

It is time Amer's Board shared the same information they shared at their broker presentations on the current position of the Iguasa well. It obviously wasn't detrimental or the placing price and over subscription in the market at that time would not have been possible. Is this a case (yet anouther?) where a new broker is being given a window to get their clients on board whilst long standing and very patient shareholders are treated with contempt by the Board? Suggest a few more lobby GC to act in the interests of us all, not the few.