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.

If Specsavers stocked them, I would've invested in a pair of hindsight goggles.

Assuming the mooted July 5 deadline and emails from the company are to be believed, then tomorrow or Monday are the only likely days left for an update on developments. I am, however, prepared for anything.

Results out this morning , will they move the share upwards ?

I would doubt it with a pre tax loss...think i shall sell and take a bit of profit whilst it's there.

Will be 7-8p soon no matter what they say here.

Ou est TFC ?

A pre tax loss isn't a surprise, it is more about the future isn't it?

annie38----Pourquoi.
2517

j'aime mon ami TFC...

G: I was interested on his take on the latest RNS. Regards.

Brief mention in the Daily Mail today:

It would be interesting to hear from any oil drilling engineers opinion on the following:

1/Assessment of the effectiveness of bypass fracturing at eliminating high skin factor due to formation damage.
2/Any other examples in the Middle Magdalena Valley or else where, where this process has been tried.

Evermore, I wouldn't worry too much about that as they have one of the world's foremost experts dealing with it.
BWD, The Daily Mail is right to point up to the corner that has now been turned - pity that hasn't been noticed more widely yet but sometime it will be picked up on. I am happy to just sit back and wait now.

SS,

You're right, but the sp won't progress until the company issues some factual information i.e. numbers re increased production and reserves.

..and I expect we will have to wait until the AGM for that !!

You could well be right.

Sharesure - you sound relaxed.

I agree with your view about how this will turn out but I cannot help being a little disappointed that in the meantime the ongoing work at Fenix has overshadowed some real progress here esp in terms of the 10 well programme etc.

Surprised also that we have slid back from the placing price... but I guess those who stumped up the cash must have thought 16.5p a good deal.

I may have raised this before but surely RBCCM will put a sliderule over AMER? Maybe they're waiting for Iguasa to be resolved before putting pen to paper.

BWD, I am relaxed about this stock. The sudden move downwards last week shook out a few fairly significant T trade holdings - but these were immediately snapped up, so I am not the only one taking that view. I am also disappointed that newsflow is so slow - the ANH often being blamed for this - probably more times than when it is actually true. As you know from previous comments I believe our chairman has outlived his usefulness to us and we would do well to have someone with more industry specific knowledge at the helm. I would have thought that there is the possibility of further news before the AGM but our chairman probably wants to save it, even if that means he loses a few more PI's on the way- I don't think that he likes them anyway.

SS - OK. My guess is that Iguasa is causing a log jam on newsflow. Once that it is cleared up we will get back to a more realistic level.

SS,

Sounds like a bit of a vendetta re the chairman. Not sure what he has done wrong. Company has a sound strategy, specific short and medium term goals, and raised some additional funding at exactly the right time. What can be wrong with that?

BD, Not really. If you are going to the AGM you can make your own assessment of him. I just don't buy in to much of what he is about - AGM's in South Wales, apparently excluding nominee shareholders even when he knows from their broker that they are shareholders, loads of directors' share options at discounts (only rectified after he had been pressurised into seeing things from a shareholder viewpoint - he is after all only the steward in charge of the shareholders' funds.)