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.

That's one heck of a post.

TFC, any guestimates of where you think the price could head towards & over what sort of time span ? I know this is a pointless exercise really, but would be interested in your thoughts on this & anyone else's if they care to input. Just speculation

We are one of the top movers this morning ......... down

Once it fell below 15.25 it was a chart sell , now there are stop losses being trigged

But underlying this has anything changed? I don't believe so. We just have to await the company's newsflow - they do not seem too bothered about informing PI's - just their institutional friends who obviously were told sufficiently good things last month to stump up the placing shares at 16.5p. I have never been a supporter of GC. John Wardle, yes, he's different, but I think that our company's chairman is nothing special - which he manages to prove on occasions like this.

OK so it's taking along time but the sp is at last now slipping to where it belongs. I think I said 7p-9p some time ago and I still believe that.

Mind you, the current state of the SM doesn't help with bond and sp spreads rising.

Sharesure - that's half the the problem: Amer has not changed in terms of its view towards newsflow. I thought we were entering a new period of Glasnost with the Fenix development. Unfortunately not. This is the consequence.

Its a puzzle why we are where we are this morning??

No idea mate. Sort of thing you'd expect after a negative newspaper report or a major sell, neither of which have happened as far as I know. Off by another 2p? I'm surprised, to say the least. I thought yesterday was a bargain...
Would be very intested in an explanation, if anyone has one. This is clearly beyond the little slips we are usually used to.

nowt like a bloody good tree shake before impending news; and what appears a really blatent one at that. . As SS states- nothings changed-all the variables remain the same -and what is more todays trading is on a parity, and yet here we have mms trashing the stock on paltry sized sell trades........lt really stinks but all part of the game / entire oil sector given a larruping today .....considering its massive contribution to the public purse the eco/political implications of BP,of course, will not be helping .ln saying that AMER starting to claw back a little of the 10% loss in late afternoon trading ....hopefully finish day where we started

TFC, Agreed - re MM's nanipulating things. This has happenned 3 times to this stock in recent months and each time the bounce back has been to a new high - all made possible by this mgt's inability to stick to their news release timetable. I really do think that we could do with a better chairman. He is a weak link in my view.

SS - are you going to the AGM ?

SS,

I am not sure what GC has done wrong here. The company was going nowhere with the previous mob - at least now there is production, shortly more production and an extended drilling programme over the next 12 months or so.

Bhunt, Not unless it is in London. I'm not sure that I would be particularly welcome as far as the chairman is concerned anyway and as we don't seem ready to turf him out just yet I'll wait until that moment. Hearing John Wardle's update firsthand would be useful although by then I would hope that we are a long way forward from where we are now, subject to no more pointless market shake-outs like yesterdays.

SS I am happy with GC. Yesterdays bear raid which it was in my view albeit a mini bear raid, happens when news which is expected does not happen.

We are waiting for news which is now delayed.This in line with what went on at RKH sowed the seeds of doubt in investors holding E&P oilies. Strange coincidence both shares lost value on the same day through no explainable reason.

This is a very rich well by all reports and having spoken to Amer ,they are treating it as a fine wine which has to be nurtured. They are treating the stimulation with kid gloves and are not willing to hurry the operation.

Believe me I am happy with this.

In time we will be looking back and saying a job well done. JW is on site.

Yuff we'll have to differ on GC. Agree that yesterday's mkt shake out was all that it was. Need to find out who Michinoko Ltd is and whether their 6.04% is significant.

SS where do Michinoko come in to the equation?

SS sorry just seen the RNS!!

Yuff, Either their name is spelt wrongly in the RNS or they are very secretive. Google comes up with nothing!

Michinoko and Mr Clarke also have interests in Purewafer (PUR), is this just coincidence???