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.

basically nas because as my posting infers there is nowt to say reg.AMER that hasnt been said a thousand times - but a single word be enough for a wise man ......must say all week buying has outstripped selling ..........and when bid hits 12.75 a ready market appears from the ethers and snaps the beggars up .{ as citizen SS pointed out ages ago}......posing the usual conundrum do an element of traders / investors construe that level as good value ..few rollovers this week / impending news ?? .........but dont hold your breath ...zzzzzzzzzzzzzzzzz

No AT trades until 4.24 and then a spike up to 14p

Roll on next week Nas.

Friday is approaching!

What happens on Friday?

Poet's Day.
2517

Hi bwd

It has spiked up in the afternoon last 2 fridays, I suspect on potential result of iggy test

Ah, I see. Well you never know Nas. Friday could be the new Thursday!
George - think I'll bring poet's day forward ... I can actually see the sun.

bwd---Good on you, you deserve it.
2517

Oh, not sure sure about that George! But same to you. ATB.

This is painstakingly slow, I guess it's what we Brits are good at, waiting! We've certainly had a lot of practise with AMER.
2517

Just think of all those lovely junior gold mining stock's we could have invested our money in.

Tfc

Any thoughts regarding the testing at iggy?

And BPC

No post's yet on the RNS update , is everone in a state of shock at the price drop ?

TFC , Sharesure what's your take on this ?

Rbc broker note out, price target 29p

Iggy is a technical success but not commercial. Mud issue fixed yet flow rates not as expected hence appointment of Fronterra Geosciences. Over a 6 month period tests will be conducted. It is possible to drill another Iggy on site but at a cost of $5m they have decided to wait for more information. Issy is a cheap and shallow well. production will be ratcheted up.He says there is good grade oil down there and they will do what is necessary to get to it.

The market has discounted news from Plat and focussed on fenix,but as i type seismic on Plat is happening.

2 wells will be drilled back to bak in Plat in the 1st 1/4 2011. Chances are very high for a successful drill as the geology is known.

RBC note out today gives a 29p valuation with a zero valuation for fenix.


There is a big upside in Plat with a 6 well drill programme still on schedule.

There is substantial cash in the business and cash is building.No roadshow planned but RBC doing the rounds with their clients.
Looking to get 5000BOPD from Plat alone and $120m pa income.

With seismic and wells drilled they will have to give reserve numbers to ANH by march 2011.

Summarising, I was told that on cash flow and reserves there is ahuge upside in the stock.

If someone can get and post the RBC note that will be helpful, but I am told the Board are very happy with the contents of the note.

Am glad i didn't sell any today after hearing that.

That brokers note hasn't made much difference to the the price yet

Only been out 2 hours Aldwickk-remember that the valuation is with Fenix at zero-in 6 months time if Fenix comes good we can be looking at a revised note.

A slight setback but we were at this price 4 weeks ago.

They are employing the best company in its field to perform the survey and remedial work that may be required.