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.

Anyone expecting a sensational pre AGM statement last week would have been disappointed; it was typically thin on detail but John Wardle made up for it with an excellent presentation.

Mgt very open and answered all questions. If body language is anything to go by, they are all very positive and happy with progress and future plans.

I suspect shareholders (me included) have focussed too much on Fenix. Although it is obviously a valuable asset, it is eclipsed by Platanillo big time.

The coming drill programme, which is exciting and ambitious in itself, is "just the start" they said. They are talking 20 - 30+ well on this field alone. I have no doubt that's what will happen in time.

GC said at the end of the meeting that their expectations for Plat are "ten times greater than for Fenix."
Talk of succumbing to a take-over were brushed aside. While accepting that everyone has their price, they have no desire to sell AMER prematurely.

There were no grumbles from the floor during the meeting. I heard none afterwards.

I'm more than happy with what I heard and am looking forward to following developments over the next six to twelve months and beyond.

Was TFC At the AGM ?

Roly (first name terms eh?)
It is very rare for anyone to declare on a public BB that they have invested a very significant amount of money on what is basically a punt (nearly all baby oilers by definition such beasts). In fact I know of only one AM poster who has held a notifiable interest in an AIM company (of course there may have been / are others) and even then his identity was not sussed by the other posters on the thread. My point being that I doubt very much TFC purchased such a huge block of shares, which incidentally showing a significant loss. If you follow the ramper's code, some of the following comments must be posted:

I've just topped up
I couldn't resist at these low prices
I've just topped up cos I couldn't resist at these low prices.
That 1.7m trade is mine (naturally posted after the trade is reported).

I'll take a wild guess and hazard that the following criteria have to be met before TFC puts in another appearance:

AMER spike above his claimed average (he sells at a small profit)
AMER SP rises and he claims to have sold in small tranches at a massive profit.
AMER SP continues to fall in which case he won't post unless it gets back to b/e or profit.
AMER goes bust and TFC is never heard from again.

Fifth option - this post flushes him out :-)

Aldwick, to best of my knowledge TFC was not there, if he was he did not make himself known to all us PI's that were there!

A few thoughts:

Would I 'invest' in AMER right now? Absolutely not.

Since the run up to 20p the SP has been in a firm downtrend and the upper channel of that downtrend is solid resistance.

The previous uptrend was broken at the end of June and a far less supportive downtrend is in danger of being tested which puts sub 12p in the frame.

The MACD histo and MAs are turning down and a joint X-over below the zero line would not be good news.

On the positive side, if the upper channel of the downtrend is broken with volume (above 16p) well, time to think again.

Strange that he was not there , he seemed to be looking forward to it. how much was that buy trade of his worth 160,000

Yes Peter

6th option he sold at a profit and took out a short

I wounder do you know his background in the city like i do ?

And the 7th option, it's never been above 17p since he claimed to have bought a slab. Have you actaully met TFC? Seems you had a lot of trouble re-establishing contact since his last prolonged absence.

PS. No idea why all that TA is underlined, AM playing up I think

I understand he was forced to sell at a loss - hence he did not attend the AGM

10 days with out a post from anyone things cant be that bad come on guys cheer up

Magicmick

We have been waiting for you to post

I don't mind waiting if its good news , bad news travels fast.

Is there any reason I've missed, as to why this has been in freefall since the AGM ?

Freefall probably a tad harsh, but slipping down daily

slowly but surely going up i hope. have been waiting since the chaco days and still willing to wait another year or two.

Plenty worth waiting for. Drifting whilst waiting for an update.

Likewise magicmick, also been in since the dark old days of Chaco.....having waited this long, i'm in no hurry now either and hopefully our patience will be well rewarded in the end, however long it takes

From the AGM I thought that the feedback was that the Fenix clean up was nearing completion (if not on the whole depth at least a significant portion of the producing depth) and that RBC were due to issue a Broker's report in August. It seems news on both fronts should now be issued if their intentions are to have credibility. A drilling programme for 2010/2011 wouldn't go amiss too.

Sharesure

Any email response from them regarding the above ?