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.

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.

SS: Completely concur. Well said.

Absolutely spot on.......

Not sure I care as long the sp increases in value.

tfc

Are you still as optimistic as you were last week?

ln a word: YES ! ...but you are well aware i wont leave it at a word .:-)) l personally belive those buying now are getting a real steal ( for short term trading } . Not that that will matter very soon . While i agree with previous posters reg. the boards tardiness in releasing what could -well would-be deemed as price sensitive informations reg not only state of play with comprimised well but news of reserves on Tigra Fenix; l place a lot of this blame at the door of AIM with its vitual reality non existant regulation . But back to AMER . Rather surprised by your enquirry considering i only commented last week :-) l note with interest that directors/ top tier management all increasing their positions which is certainly not a bad thing in aligning both interests of s/holders and snr management. Considering Colombias extremely relaxed fiscal regime reg, oil exploration ,esp when compared to Veneuzula ,Bolivia and Brasil , it is a good place to have core assets . Far more importantly .of course, the very simple fact that Colombian production levels of crude b/pdoe are expected to exceed that of Veneuzuela with its massive coffers of oil revenues,by 2014/15 , and has begun to already attract big hitters in this game.// Both reps of Ex/Mob and Chevron been out here very recently .l have heard of several who have overlooked several basins in many parts of Colombia -but namely llanlos .And now Colombia is making a truly concerted effort to lose its malagned status as a pariah drug state "big Oil" sees the back door left open . Now AMER are drilling/planning to drill within spitting distance of some great strikes such as the bonanza field . Now JW understands the geology of this hydrocarbon rich area only to well from his days with the old chestnut ,Emerald energy, who before he headed the team,had spent what seemed forever mooching around Colombia achieving very little .And then he arrived and literally turned them around .He is no newcomer to the area . He will know better than most which leads to follow and exploit - and we have an eleven well programme ahead .- many of which are shallow hence quick to drill and quantify .Dont ever forget a junior expo/producer is as only as good as its senior geologist .So its not a mere coincidence that the cream of the crop dont merely achieve one truly great strike but do it on a consistent basis sniffing out this mysterious black gold . This is no co-incidence. And Wardle is such a man .ln some respects lt still shocks me that he took up this position but when you know a LOT about a place which so many people know so little it seems like a hand and glove fit . ....Also i dont fall for this "money week" prediction that oil will retrace to $4o p/b - thats utter bo*80cks .Not only would it spell the end of the petrodollar with its apocoliptical outcome but at best nations like like lran lraq,Syria,lndonesia Libya,Yemen ,UAE and Venezuela as well as other OPEC constitutients would do what they have been threatening and demand payment in a basket of currencies ...For the record -.l dont mind admitting now i hold a considerable number of AMER and am very confident

A rare gem that I've not followed...apart from the Falklands lot and Emerald Energy : I've never been a fan of the South American small oilie producer-explorers...will have to do some reading...

TFC,

As ever, a thought provoking post.

It's interesting that some folks believe that the value of companies such as AMER is dependent on their production levels (with a little something for reserves), but then you have RKH which goes through the roof on relatively sparse information.

The Iguasa testing seems to be going on for a long time - difficult to judge whether the extended period is good, bad, or no big deal for the sp. However, the market appears to be waiting for something and I presume that this is the next topic for an RNS.

From what I understand : quite a bit of oil over a large area with wells pumping 250 barrels or so a go...you drill a well : you get another 250 barrels...and so forth....market cap 135 million pounds with quite a bit of exploration upside....the strikes will never be like the middle east, but on spudding : exploration wells, the sp could jump by 3 or 4p a go and there could be a lot of them....not in, but will consider...thanks TFC and sorts for the posts...

RF,

Hope to hear that you are a holder soon.

It's worth checking out the presentations on the Amerisur website. Whilst Paraguay is a way off and relatively high risk, the language used by the company - which has a reputation for prudence when it comes to public pronouncements -includes 'potentially tranformational for shareholders'. Make of that what you will, but I would say that success there will mean an sp measured in numbers of pounds rather than pence. Anyway, by mid 2011 we will know more - potentially a lot more.

Bon chance.

tfc

A lot has happened since last week namely the PIIGS and everyone being spooked about it and just wondered whether you had lost some of your bullishness but it seems that you haven't which is good to hear as I hold quite a few of these and have added over the last week on the dips.

Does anyone have any views on/knowledge about today's unusual trades?
TIA.

Your patently ref. to the 14.8 million " O " trades!!.,,ca pue !! lt takes a thief to catch a theif . Or so l am told .....Reg. wednesday trading -Smokes and mirrors comes to mind . And all is not as it seems .Not at all. ,,lt f*****g stinks .This market is rotton to the very core. ..On a note of comparative levity,of course, it could be GC selling up to finance his pending litigation with lMF what with him having maliciously and falsely stating that they (lMF) were in talks with the lndian premier league to stage a rebel cricket tournament in UK ...hehe lf only it was as nice and simple as that; but it never is ,,is it ? ...........My take on this is that it could be, and i am reluctant to say this - but it could be,and appears to be , a hi value individual ( having taken top accountant advice and considering the status and price achieved ) moving stock into one of the many financial instruments..( such as a simple holding company..) that exist for this purpose. / only one reason an individual would do that .and thats paying less CGT .But it was neither a buy nor a sell nor a rollie -u can be sure of that !!.......News iminent on lg ...have this from horses mouth . resavoir was re-entered and equiment installed in preparation for stimulation.......About f**** time as well as without this news in public domain we are being deceived in a big way -and meanwhile thousands of small pi s will be automatically sold out of the mkt while mms abuse privalege in taking s/p on walkies and lining pockets of mateys..............Have been on to GC about clarification of lg (thursday - unavailable for comment). ,,,,,utterly disgusted with the "old pals "act rearing its ugly head ........... Marx had the English well sussed out

Dave as I said on the other side. Its either someone moving their stock into a holding Co or some such like or it could be related to Bluehouse unloading their stock over the last 3 or 4 Months, yest ann signaling that they have now sold out 100% as rumoured in the FT. Crumbs they may have it right for a change!!!!

TFC - thanks re yesterday's trade etc.
Unfortunately, despite some positive developments recently, AMER has fallen back into the old habit of keeping its shareholders in the dark. I am content to wait for them get on with the work and learn the news once various tests etc have been completed. But I can think of no reasonable excuse for not issuing an update that Iguasa re-entry had actually happened.

ML - thanks. Didn't read all the posts on the other side properly but it sounds right. Just can't help feeling a bit miffed that someone has trousered a nice deal thanks to the price being walked down. Well, that how it seems anyway. In this case probably nothing to do with AMER - but I wonder if we would be back to sub 17.p had the appropriate updates been issued. One for the AGM, I suppose.

Taking bid down to 15.75 has all the hallmarks of a good old fashioned tree shake expoiting the principle that scared money never wins ....nothing more/ nothing less !!!...and so flagrant it beggars belief .No-one will convince me otherwise / dont ever talk to me about "sets" providing a level playing field; and preventing mms from walking the dog and buying it a diamond collar in the process -esp at a time when news of a positive nature reg lg is being prepared for public consumption early to mid june - from 150 to 350 bbloe p/d to in excess of 875/ 1025 bblpoe pd - Delay in this news is only due to AMER wishing to accurately evaluate the longevity of achieved increase in prod. levels and the very size of said resource ..../ utterly disgusted but never surprised reg mm activity . Will post later in more detail when have time as am planning a blitzkreig top up. o/t ..l note CDS- despite j/v with big oil - considering delisting from AIM as a consequence of inability to raise funds to finance drilling of Paraguyan prospects .Yet we with our Columbian/Paraguyan assets were successful .Think about it.........Lets not forget JW was content to expolit leads we had in Columbia prior to the raising of $20m to accelerate pace of drilling programme.

All in ...lm @ 16.62