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.

you wish!

ITS All relative surely ; and of course i wish or i wouldnt have ferkin said it to start with .And do tell- How much oil / revenues is RKH PRODUCING !? ORGANIC CYCLE FROM DISCOVERY TO ACTUAL PRODUCTION IS SEVERAL YEARS and whose to say RKH will still be around then as big oil has a tendancy to muscle in

TFC RKH hasn't to do much to produce more than 550bopd.

Halifax

No your absolutely right it hasn't got to do much to produce 600bopd but it hasn't got hope in he'll of doing that within the next 18 months whereas amer have a similar net pay zones in iguasa on land and costing about $16bopd to get out, if worst comes to the worst it can drill another well next door for $4.5m rkh can't say the same.

na how much will it cost to drill another well to produce 550bopd?

considering rkh could be bought for 40p as recently as May 2010 ,one could not be blamed for thinking that they , like their buddies at DES , were expected to find nowt .....hindsight a great thing.....but should lggy deliver what many quaters anticipate then its s/p will go crazy ...as i said its all relative.....a land based strike with potentially 300 feet of the sweetest low sulphur 36 o oil is not something to scoff at ........

tfc - Ig certainly impressive although the mgt say they are expecting "ten times more" from Platanillo development.

Reculer pour mieux sauter?

Isabel 1 current production gives us a hint on Iggy's status, impaired flow rates are the norm after formation damage, and JW has a history of being very cautious at increasing flow rates from well heads, in order to safe guard the integrity of the reservoir.

However anything is possible in the oil business-glad to see some positive market action today.

Evermore

Think you'll find there was no formation damage at Isabel !!!

.apologies /............somewhat off topic yet interesting to know..<> ....After three weeks scouring my library a few months ago for what seemed forever, l l finally located a book for which i have been searching ......l was begining to think i had dreampt the book even existed Anyway l came across some very interesting maps while re- reading oil guru Peter Odels classic " Oil and World Power" published in 1966- the maps i shall try and scan and reproduce on BB. Nostradamus revisited . ln the final chapter of the book- ( rumoured be provided courtesy of retired agents belonging to the CIA) he makes reference to future regions of potential oil and gas discoveries which at the time of his writing ( 1966 ) he could NEVER have possibly have known ; but of which in some cases we are now dependant, and in the ensuing years, will be utterly dependant ....At the time oil was cheap and abundant and to be found in politically stable countries . . Hubberts peak was still reg. by Joey Average as something for the academics . Big Oil painted it as a crazy surreal theory of a nutcase. . And after all who gives a shit when oil is $12 p/B and you can fill your tank for 70c . So the powers to be saw no mischief in allowing academia access to its own considerable data But now oil is running out . lts $70/ 80 p/b and going only one way despite incwssant shorting by some big movers... As i said it wasnt Until quite recently such data reg maps wasnt wasnt regarded as anything more than the preserve of academics .Of course it is very hard copy now . As i say lt is quite eerie as to the accuracy of his locations as since 1966 many of his predictions have since proven to be home, or highly potential homes, to what are NOW, or soon to be ,some of the largest gas/ oil discoveries known eg - The Falklands ( acc. to these maps the FI will DWARF SAUDI AND lRAQ combined) , Greenland, Mongolia, Central and eastern Siberia-esp. in S sea ,lndonesia coupled with several finds in the "stans" of the ex U.S.S.R.,the south sea lslands . He further maps massive swathes of on and offshore lndia,and indeed much of South east Asia-esp China, Malaysia Burma, Thailand , while illustrating truly massive potential along the entire eastern Atlantic seaboard of Africa with Kenya, Uganda , Tanzania and esp. Mozambique equalling the production of its Northern and Western counterterparts such as Libya and Nigeria...........ssshhhhhhsh .Madagascar appears like it is floating on oil. The interior of Australia is a giant oilfield/ gas resavoir Now to get to the relavence of my mail ...Guinie, Columbia, Brazil, Paraguay and Argentina are colour coded as indicative of having the potential to be as productive as many states of the middle east ..Venzuezeula the builder of OPEC, is but scratching the surface of this continent and Argentina will probably be a bigger producer in 20 years ..But i admit my heart missed a beat when i looked closely ...75% of Columbia has the permissive geology for oil and the entire country is shown as literally sitting on a bed of gas. Almost impossible not to find one or another ,,,,,,. .lts not the end of oil . lts back to the old cliche .- lts the end of cheap oil ,,,,,,,,,,an age a generation believed would never happen and are very angry in paying , plus 10,000 American troops dont troop into Columbia -build a base- and ..aww relax -all will be what you want it to be - a success story .......

...................looks like some-one dumped a shedload juste after nine .....b/o down to 12/75 / 13p from 13.25/ 13.75 in a singular trade ....OR mms marking AMER down 0.5p on a few "sell" trades totalling juste in excess of 100,000.......lf thats the case it all looks very volatile.

Tfc

Judging by your posts this morning you expectedcsome Dort of news?

nas .....for a start i dont believe as does evermore that lsas prod is indicative of lggys - the cedar may grow in the shadow of the oak but they remain totally different entities ....lggy is a multiple level find whereas lsa is no more than a singular level hydrocarbon trap-perhaps no more than seepage over an age from the main basin of lggy ... ,,,,,,,but i do believe news of inferred,indicated, and proven reserves - P1,P2,P3,- and potential daily outpute of this resource called lggy is well known in certain circles; and could, or should, be put in the public domain ,,,.....but dont hold your breath on us prols being told yet !,,,,,,,,,,,

Tfc

I have heard the same but can't find a just reason for trying to hold the share price down unless it is to let their mates in. Via placings and rns' that have no need to be released but get released to disappoint

Thank you TFC for your earlier comments, I always appreciate your insightful and colourful thoughts on this board.

Re Iguasa 1, you could be right and the structures could be completely different to Isabel 1 even though they are on top of one another and just 25ft apart.

I do think that we have been "extremely unlucky" with Iggy, and just hope that they can fix this serious deep formation damage, creating low porosity and prove it's commercial potential.

Glad to see some speculative excess coming out of some North Sea Oilers today.

Sharesure/anyone: is there any indication as to when RBC will published their report?
Are they waiting for Iguasa to come around? Or is there something else? I asked but the response was vague. I don't necessarily expect it to impact on the sp (depends what it says) but I can't see the point in RBC sitting on it sine die.

BWD I asked Nick the question about the brokers report being overdue-his response wa that they are just as frustrated by there being no brokers note being issued,but there was little they could do about it.
Pity that the company have no power over the house broker-makes you wonder who is wagging the tail??

Thanks Yuff. I agree. RBC need a rocket up their rear ends.

unfortunately BWD l havent got access to rockets ( yet ) but i doubt even a size 11 winklepicker up the jacksie would hurry any of them whether it be bod or nomad ./ starting to seriously piss me off ..................l hold 8 junior oilees coupled with a few midcaps and a couple of international majors .......and this is the only one not to have made a big step north ...............

tfc

is that what their lethargy this year is designed to accomplish, piss the pi off into selling!