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.)

b>



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.

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 ?

I got a response from the company re the same question. The comment was to the effect that both Fenix wells were on long term test and news would be released to the market regarding the outcome of this testing when appropriate.

Rightly or wrongly, the impression I got from the response was that LTT on Isabel and Iguasa was underway.

Thanks. Most companies would think that it was significant for shareholders to be told that operations like the recent clean-up had been completed - particularly since without that there is unlikely to be any oil flow from the Fenix well. Irritating that Amer's directors and advisors do not share that view. It looks like there is the posiibility that the first ordinary shareholders will get to know that the daily barrelage figure has increased is when they issue the next company results and have (or not) more cash in the bank. Not very good PR.

SS : If you can access this link you can monitor production figures yourself. (June daily figures now available. Page 4, 8th row down.)

http://www.minminas.gov.co/minminas/downloads/UserFiles/File/hidrocarburos/estadisticas/Produccion/Produccion%20de%20Crudo%20por%20Campo%20-%20Junio%20de%202010.pdf
Regards.

ss - off topic but have looked into early stage miner herencia resources. i would value your opinion on them if you have chance.

catto and clarke are both large investors.

Annie, Thanks - unfortunately I couldn't get that to work from a first attempt. I'll try again later. If you have accessed it already can you discern any increase in revenue/barrels from the position stated at the AGM?
Raznum - I'll take a look. Do you get Catto's bulletin on the stocks he suggests? If so it would be worth checking that out although from experience he is usually reliable as to the final outcome he is usually far too optimistic on timing. Amerisur being a case in point.

SS: The production figures for June (shown to be 349 , down from 439 in May) were drawn to my attention by the author on 25/8. so perhaps they are only published app. 2 months in arrears. For a direct link visit A**** (AMER 25/8 (10924). Hope this is of some assistance.