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.

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.)

SS, to my knowledge he has never excluded any share holder and I have been to everyone thats been held with GC at the helm. The reason for the reg office in Cardiff is quite simply economics, they get a subsidy from the Welsh Assembley, much better than wasting cash having offices in Mayfair!

ML I know all about the subsidy reason - have you ever examined that in detail? A couple of colleagues I know had terrible difficulty convincing him that they should be allowed to attend the meeting when their paperwork was in tact but slightly wrong. I think that he will have a posse of Londoners paying him an AGM visit this year so he had better have something good to say.

SS, cant say i have but i am sure its more economic than offices in Mayfair.
Are you coming yourself, I understand a certain Robert is!!!
Should be fun.

ML, I cannot make it this year but I know several who will be going - one or two who speak for sizeable blocks of shares. Hope GC has a good story to tell them. As you say it should be fun!

Tfc

Are you still around
And if so what's your current take on sp and are you still going to agm?

Putumayo 12, a block immediately next door to Platanillo (on the eastern side) has been awarded to a partnership of Canadian firms Surocco and Winchester. Hotly contested with eight bids.
Like AMER, they are believe there is a link between Putumayo oil and large fields across the border in Equador.

http://www.stockhouse.com/tools/?page=%2FFinancialTools%2Fsn_newsreleases.asp%3Fsymbol%3DV.SRN%26newsid%3D7800995

Pacific Rubiales got another block next door (as per earlier post)

Does anyone know anything about Michinoko Limited re: recent AMER holdings RNS?

No. Complete mystery although there's a fair chance they are connected to Giles Clarke in some way as they also had a sizeable holding in Pure Wafer.

bwd, big mates of GC apparently.

Thanks guys. Was just curious but I'm going to the AGM so maybe I'll hear more about them there.
Meanwhile, am a little surprised that we are still in this 13p range...and not back to near the placing price at least. Perhaps it will drift around this level until there is clarity on Fenix etc.

From what I hear the AGM will be a good news event - if the RNS does not come sooner. I just wouldn't bet the house on when in view of previous false dawns. What seems more certain is that the delay on news is for good reasons - and on that front this company has not been slow in announcing disappointments when it has had to eg the results of the Primavera drilling a few years ago.

SS,

I am sure that we will see evidence of the imminence of good news via increased trading volumes. I don't know how folks find out in advance, but they always seem to.

ss

The only good news we are likely to get, pre agm, involves iguasa and that is down to schlumberger and if they are successful.

bd

250k in buys in last 20 mins, not much but a lot compared to last few weeks.