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.

"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.

look at those 25,000 trades bid down to 12.5

now 12.25

I guess you have your answer Roly, the Market seems unimpressed. On reflection there seemed an awful lot of unnecessary detail in that RNS, trying to gloss over poor performance?

PTH /- Reg. your rather morbid inquiry as to details of the insider dealing case to which i alluded in posting 2384 ....Source can be found in your FT - page 1 , would you believe .Considering i wrote the relavant post on the 16th i suspect it was in edition of either 14th or 15th. Apologies for being so vague -Usually i keep all copies of FT at my London home and thus could thus be more precise - but am not currently in London- nor will i be until after brit winter . ...anyway i hope this helps ...........Reg todays RNS- what an utter waste of time .-will make a comment when i can work out the point of it . Seems to make an absolute mockery of comments made by board at agm and l have been up since 3-30 this morning which i calculate to be about 7-30 in London phoning all parties related to AMER trying to get some straight answers reg state of affairs at lggy which i believe to be the "true " company maker only to be repetitively told that great progress is being made and all detail is included in the rns ............some-one is being economical with the truth here ....................................................................................................................O/T..Gauling, l know. but still a nice strike by Canacol drilling a block on the same south easterly axis to the santa marta faultline in llanlos basin as ourselves and a plethora of other SUCCESSFUL oil juniors . -http:/www.rigszone.com/news/article.asp?a id=97729 ......quite ironically a well not dissimilar to lggy in that rancho hermoso ( RH6) is a well with 5 different resavoir intervals{ ring any bells yet ? } producing a combined gross rate of a tad in excess of 6,000 bboe p/d ......Yet all we seem to get from our board is plattitudes.............and seldom at that.

Tfc

Are you able to email any info that might not be able to be posted.
Like yourself the info about iggy and Isa is baffling why give with one hand, plat, and take with the other, fenix.
I mean 35 bopd that's 10% of the natural flow rate, what are they trying to do suffocate the oil.

TFC-I too spoke with AMER and was told they thought the RNS was positive.Re Iggy they told me remedial work continues and that the well is a gem.They are not prepared to rushit. perhaps your info is more directly related. You can email me at jordanfear@yahoo.co.uk if you wish to share info off BB. With all the hype surrounding RKH,GKP and DES where there have been extreme rises,one can sympathise with people wanting a quick return and selling up.

Tfc

morbid? Not really, merely interested, I'll check out the FT.

On the subject of AMER, they have continued to disappoint since the CHACO era and for the life of me I can see no reason to tie up funds in such a flaky company. What on earth was all that nonsense about a piston thingy bob pumping at so many revolutions per wotsit all about? Smoke and mirrors springs to mind!

is this the case you are looking for ?

LAWYERED by RPCA former senior executive at IBM was sentenced to six months in prison after pleading guilty to charges arising from the Galleon hedge fund insider trading probe. Robert Moffat, 54, a former senior vice-president of IBM, admitted in March that he provided insider information to Danielle Chiesi, then...
Sep 13 2010 21:01 BST