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.

juste about Roly ...juste about mon ami ,,,,my friend was sentanced to six months the other day for insider trading so everything feels a little hollow at the moment - mind you he always said he would get the FT front page one day but somehow i dont think he meant it in that manner ,,,,....is nice to speak to you also ,,as always ......,doyourself a favour and retain all gold stock now its broken $1275 and an even bigger favour and find a junior play on silver ,,,,,,,,vox et praeterea nihil

Tfc

Were you at the agm?
Have to say amer is a conundrum currently as iguasa should be worth more to amer than rkh's find, from the rns.
How long do you see these silly mm games continuing?

A great read TFC

apologies in the delay in replying to your posting Nas;was on a long flight home . While i do indeed have a a degree of empathy with your statement that mms are playing games with the s/p i cant help but think matters could be a lot worse; and upon scrutizing trading patterns one could form the argument that on several occassions mms have been most generous to us as i can illustrate examples of mms having lifted the b/o (esp. the bid ) on the back of selling and accorded it pip north on a single buy of 1200 .Now ask yourself - Are mms ever generous ? if your running a book why on earth would you do that ? l can think of only one sane logical rational reason ... lf share manipulation is in play, and for the sake of argument ,let us agree to assume[ for quite different reasons] there is, then the blame for the most part can only be laid at the door of AMER itself reg. its extreme reluctance to propogate informations to ALL investors and not only its instutional ,city and hi value clients .lts simply down to lack of news reg. a number of critical issues which SS has continually and succinctly catalogued on a number of occassions- and could answer this particular question much better than i ever could .....but news of Schlumbergers remedial work on lggy is absutely essential as are their respective stimulation programmes. That would be a nice start .News of our reserves on tigra/fenix and Platinillo blocks should be known .Look how the s/p shot up on the back of the poitive news of Dec. 3rd 2009 reg lggy RNS ...Declining s/p simply down to dearth of news causing the nervous to either crystalize profit or minimize losses .....Personally i believe a heck of a lot of information ( the meat ) is known to a few the real meat ..i am led to believe plat 3 or 4 is merely a matter of a workover of an old well mothballed as uneconmical when oil was $12 p/b...awww before i start a long tedious mail do you honestly believe AMER is trading at 13.25 on revenues of 250/ 500 bbloe p/d in this dog of a market. ? Do me a favour .Dont forget this stock was 2p this time last year - and if mms believed they could take it back there- they would But they know its intrinsic value down to a penny - but more importantly its potential. On every single occassion a few buy trades have appeared the mms have had this stock out of the starting blocks like a whippet.And believe me theres a very good reason for that. .....lggy2 to be spudded very soon and lsa 2 not long after ...then the long platinillo programme- couple these facts with trading pattern and the sheer volume of sizeable strikes in adjacent prospects to ours enjoyed by a plethora of recently formed oil companies drilling in Columbia fills me with a supreme feeling of optimism .....both our locations-one in the middle magdelena west of the the Santa Marta fault line in the north and Platinillo in the South are literally surrounded by a truly amazing number of successful strikes from this said army of new players.-right on our doorstep...................trouble being Nas so few people can be bothered doing their own RESEARCH and rely on brokers notes, reckies from the financial media like lC ,money weekly ,Shares mag , crazy tipster sheets,and worst of all general media fodder and quickly lose interest in a stock not given all the pizzazz of the city........mad when you consider the wealth of information in the public domain reg. our neighbors amazing success......Why should we not enjoy the same success ? ..,,,,The great irony being that personally speaking the only time a spark of negativety EVER enters my mind reg. AMER is after reading these damn BBS When will some people learn to ferkin invest and not churn their portfolios chasing the latest "in stock " .....This is not a punt to me. lts the inception of something good

Hi tfc

Thanks for the reply.
Timetable has changed for the drilling programme as per the agm presentation which is available on amer website. Isabel 2 is to be drilled, before iggy 2, end of this year and next platanillo well q1 next year followed by 9 other wells through 2011. Capex is expected at $80m for work to be done. They have $25m in bank rest from cash-flow so they need to up production pretty pronto!!!!!

From the FT today - if analysts are valuing RKH's find at $10/barrel, and then there was the recent sale of BP's assets in Colombia at $30/barrel, we have plenty to be optimistic about.

Hey tfc - good to hear from you again - and my profound apologies if I posted inaccurate info about you. I, and I guess many others assumed you had sold your holding as you had made no comment on the board for some time - which is unlike you - and the general chat at the AGM was that you had had to sell - that will teach me to listen to Gossip - so again my apologies.

Unfortunately, I have no sympathy for your friend if he was truly guilty of insider dealing - it would be better though if the powers concentrated on the big fish rather than the small fry. (Assuming of course tha your friend was indeed snmall fry)

BH- Thank you for your apology which is accepted with the same grace it is given . lt is refreshing to see that some people do have good manners in this "golden" age of barbaric cretinism .....Equal thanks to Nas for correcting my error in drilling intinary. l must need an optician pretty desperately as have the very website chart outlining drilling activity about a metre square on my pinboard .....either that or senility is creeping in ... .....gimme a break here and put it down to jetlag ;-)....................lf capex for estimated drilling prog is $80 mill and we have a banked $25 million then we can only face another placing or JWs metaphorical comment at agm reg. lggy 1 being akin to an errant child becoming a high achiever must have a grain of truth in it..What seemed wild and fanciful rumours of it being cranked up to 1000/2000 bpdoe might not be as excessive as people think for as i have stated before it certainly has the potential to dwarf lsa and alea combined . JW could hardly have given even rough fag packet estimates as that would have demanded an immediate RNS .....SS/ a penny, or a million SEO shares for your thoughts...incidentally before we used schlumberger we used weatherfords as services provider.

"j" have you gone back into exile [tax] ?

Anyway all the best

ps .... am making 20% on my recent palm oil investment [ PAL ]

TFC, any chance you can post the details of the insider dealing case? I'm always interested in these things, but I haven't read anything recently nor can I find anything on the tinternet. As the case resulted in a conviction the details will be in the public domain somewhere, merci beaucoup.

tfc
I can't rememeber who quoted the $80m figure at the agm but i think it might have been Nick Harrison and he was definitely insinuating it would come from production, one of the resolutions that was passed was also to buy back the shares!!!!
That would be nice ifit happened.

Operational update out - 550 bopd

so what does that mean for the share price

I guess you'll find out in about 17 mins monsieur Roly!

Seriously though, the increase is not fantastic but adds to the bottom line, depends if the Market views it as a disappointment or an indication of progress.

to late .... want to place a order before the bell , lol

pth

ok thank's , were is TFC when you want him ?

Roly

Anything under 13p would be a good price.
A few pi's selling out at disappointment at lack of progress but recently sells are all being mopped up by someone

i sold a few of mine this morning @ 13.50 , and i see the bid is 13 now, i was overweight with these so i thought this would be a good time to sell some.

So what do we make of all this, I have been an investor here for many years. The sp has lagged behind both the AIM index and junior oils considerably over the last 9 months. The ultimate prize is to find commercial quantities of oil. GC has told us at private presentations that the results so far have derisked various assets. We have also been told of substantial potential upside in Colombia etc. So why the dismal share price performance? I think the main reason is too much hype. I like management that under promise and over deliver. In AMERs case every week we hear or read on various blogs expectation of results and expectation is what drives share prices. In GCs mind he probably feels hard done by as I am sure with his ego he reckons we shareholders are lucky to have him. This is a punters stock which means the sp goes up and down ahead and after news. This company has so many exciting assets with huge upside over time. I am happy to wait.