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.

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.
2517

Hi stockdog,

Post 219,

160 bopd found using 1/4', interpolating that means 640 bopd at 4/16', in 1988 500 bopd was found using 9/16'. In my mind that means the flow rate is about the same or only slightly worse??

I know that the bore affects the pressure (think of a garden hosepipe) but am I reading this right?

All imho of course.

that last 500k wqs a buy

No sharesure today ??

The boys were right!

Expect more news sooner rather than later-and news that will move the price up.

and as we enter an exciting stage of the Crap Share Stakes, it's neck and neck between AMER and GOO ..... will AMER be bitter and twisted after the next reading of the entrails? ...... will GOO still be in the poo or smelling of roses when the shares come back to market?

annibendod - confused by your arithmetic (4/16 = 1/4).

If 160 bpd at 1/4" choke, then 9/16" choke suggests (9/16 / 1/4)^2 X 160 = 810 bpd reduced for lower pressure across a greater cross section to, say, 500bpd. So maybe we are talking the same effective flow rate or even greater.

sharesure is on holiday.

The good news is that, probably, what has been discovered will underpin the sp at current levels. Despite cynic's understable (maybe) cynicism, my money is with the new chairman. He would not have come on board - he had no need to - unless he was of the opinion that there was something worthwhile here.

Remember that far greater (and more erudite) cynics than cynic pooh pood RADAR in the 1930s.

the chairman doesn't do the drilling .... finding truly commercial oil remains 5/1 against no matter how good the homework and analysis and quality of the company

Nice quiet board and yet encouraging activity this morning - just the way I like it.

Nice to see this towards the top of the percentage gainers chart this a.m.
Does no harm in relation to being picked up on radars and press. Regards.

Reasonable volume too.

Hi stockdog,

Thanks for your reply (236). I can see where I went wrong now, what I was trying to get across was a comparison between the flow with the 1/4 choke and the 9/16 choke. It would have been better (and less confusing!!!!) if in the RNS they'd converted one of the figures to the other for a direct comparison.

Anyway, it still seems encouraging news.

Sharesure always seems to go missing when theres news good or otherwise.