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.

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.

Contacts confirm 3m as a city buy.

aldwickk

Sharesure is away on holiday

What's the weather like down Bogota way at the moment ?

Raining bullets

sivad - we are certainly getting the volume you referred to last week. It has been a long time since we had 8m+ traded in one day. It will be interesing to see whether there are similar levels in the next few days, as we get closer to updates from the block.

Giles Clarke , 54, was educated at Rugby School and Oriel College, Oxford, ( MA Persian with Arabic), with a year at Damascus University. He began his career with CSFB as an investment banker.

He founded Majestic Wine in 1981, as Executive Chairman built it into a national chain of wine warehouses and sold the business for 15 million in 1989.

He co-founded Pet City in 1990, as CEO built it into a national chain of 94 stores, took the business public in 1995 and sold it for 150 million in 1996.

He co-founded Safestore PLC, the self-storage company, in 1998, and as Chairman orchestrated the sale of the company to Bridgepoint for 44 million in 2003.

He is a National Council member of the Learning and Skills Council, the largest quango in the UK with a budget of 11 billion, responsible for all UK adult learning, other than universities, and is also a member of the Adult Learning Committee,a statutory body set up by Parliament, and chairs a sub-committee on migration.

He was Deputy Chair of the EU Task Forceon Skills and Mobility and presented its report to the Barcelona Summit in 2002.

Another large buy 3 million @7.50,getting better all the time.

Also chairman of PUR, I think, SP not doing so well. But you can't win 'em all.

A few more buys today-creeping up.

up 11%. any reason

Possibly information leaking out from somewhere. If the buying goes on, this becomes more likely.

bigwavedave-I only impart what the boys wish to tell me.So far they have been correct.

Big buying will continue with news in the pipeline.

Price target if all drilling is positive supported with and by the Repsol deal -55p