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.

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.

blackdown,i guess all we have for now is confirmation of successfull re-entry into alea,still need lots more facts but its a start in the right direction.

agree with the decoding of the rns !!

Platanillo1 basically missed, but seems to indicate the updip may lie between it and Alea1 from where they will drill Platanillo2 to try to locate the upper u of the reservoir.

Alea flowing at 160bpd may be less than 1998's 500bpd because either the 1/4" choke allows only a slower rate, or there is less (pressure) there now than there was.

Neutral news - does not necessarily indicate long-term production at an economic level.

Moderately disappointing overall.

All IMHO - not an oil expert.

thanks for that stockdog. Where's sharesure when you need him

I think this is a momentous occassion in Amer's life - we are now an oil producer - so why do I feel so deflated - along with the share price.

Its been a long time coming - shouldn't we be celebrating ????

Morning all. bhunt, I think it's a bit like the journey of a thousand miles, we've taken the first few steps. Long way to go, but the determination is there.

Am still way down on this one, but hey ho, got my walking boots on now.

Maybe you are feeling relieved rather than deflated!

relieved - true - I feel that we have put a support under this sp at about this price. But deflated as I think we should have done better.

We were pushing 8p a couple of days ago on no news, now we have good and positive news and we don seem i9nterested any more ?

market is clearly very excited indeed by this HUGE find

Cynic by name, cynic by nature !!
Very true though, not exactly lit the sky up

Nobody has said how big (or small) the find is! The size has yet to be determined.

perhaps it will be enough to fill your car sump .... or then, maybe not!
clearly they have not found the new substitute for Saudi or even North Sea!!

I dont think we are expecting a huge find - but a year ago - when this was the only positive fiels we had, we were valued over 10p.

2 days ago, when we still did not know - we were valued at almost 8p

Now we have confirmed that we have oil and an approximation of its extent we are at 7p.

Perhaps we should plug it up again and pretend we haven't found any and let the anticipation drive up the sp !!!!

Now who is being cynical ?

Why not use this well and the other dusters AMER has drilled to solve the landfill problem, only joking. I have these and I paid a bit more than the current sp, not wishing to crystalize a loss I am holding on for better things---hopefully.
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