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.

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.

Getting periously close to my 9p.

Try more vaseline.

Noticed the AMER RNS today and stumbled upon this chart I drew 2 months ago (and posted - 2334). I haven't changed any of the lines, merely extended for the time lapse. Tells its own story I think.

Edit: Oh, apart from I've added a trendline, which can be see poking up out of the bottom right corner - 8p anyone?

I dont understand how they can say the formation damage is fixed at Iguasa 1, but there is very low permeability, the low permeability was connected to the formation damage caused by the heavy mud that they usd to drill the well.
Also where has the very high well head pressure gone?

Evermore

I don't think they understand it hence engaging frontera

Would be interested to know if TFC (after coming to terms with the latest news)considers this worth hanging on to.

a38,

Best to get hold of the RBC report and reach your own conclusion.

BD: Sound advice of course, but I have no intention of jumping ship at the moment. In the light of recent events however I may be somewhat sceptical of the objectivity of a house broker report . Nonetheless would like to read it. Do you know how you go about getting a copy/sight of it? Regards.

a38,

I am not sure how you get hold of a copy, but it makes for an interesting read. I am sure other, better connected posters may be able to steer you in the right direction.

Plenty to go for in 2011.

annie, email me on the link at money am.

SS: Thanks but have now obtained info. Regards.

Nas, Annie38, Roly et al...........aplogies for delay in responding to your inquiries.- l have only juste returned from DRC and this is my first oppertunity to respond to recent news !......Firstly the dark side- To be honest. l fully anticipated such an RNS.. Firstly how ironic the bod should decide to release informations reg that dog of a well called lggy on the very same day RBC should release a note indicative of a 29p Target. .. ...Thankfully we have disposed of lightweight players Astaire- and have RBC as Nomads Thry happen to have a stable of Columbian oil plays in their portfolio, and l have a VERY strong gut feeling ,and big ears that they ( RBC ) are currently mopping up all these " sells" at" approx 11-50/ 11.75 level which would go a long way to explaining the skewed trading pattern whose ratios make an absolute nonsense of "SETS". lf stake bulding or simply laying off to retail clients is their remit we should thank our lucky stars . - mais qui sait ? BUT how long will they be prepared to prop up a stock whose investors patience is all but run out? Couple this with the simple fact that there is no immdediate news on the immediate horizon that could be deemed price sensitive and Hey presto ....over 900 million shares in the heady mix - and yes, of course,PTH could be perfectly correct in stating the s/p could hit 8p..Very easily ..lf i were in his position and didnt know the company as well as i do now l would say exactly the same.But more importantly ln this case l happen to doubt it; as i believe the recent drop was purely dictated to by pure news and had absolutely nothing to do with t/a .. but as i know t/a happens to suggest otherwise and unfortunately is taken most seriously in the city .and appears in a downward trend .But as i say the the drop was news induced..lncidentally.Your variables in charting are not disimilar to mine own .. lncidentally again - PTH good call on CLF..l almost bought at 103 but reached the same conclusion as yourself .. 114p was pure brickwall.....But back to AMER . Annie 38 - You ask how i see things considering i have a wedge of stock . l am philosphiical about things. l sometimes doubt i would ever have need for it anyay . BUT i am never surprised by what happens in the market place . NEVER ..The human churn in personnel in the city is phenomenal due to petty jealosies To be honest its not about l ' argent with me ...My main gripe and sheer frustration reg. Amer expressed in colourful terms in my previos few mailings was the the level of sheer contempt with which AMER b/o/d/ held the PIs ; and both Clarke and Wardle have had many on here labouring labourishly under the impression that the reputations of these men went before them, and as if we should be in awe of them or feel lucky to have them onboard . l was as guilty as anybody else thinking Wardle would replicate past successes ....Shhheeesh They both ran the company like a little sideline. Something to which one would attend in a perfunctional manner A bit of an overthought. .Of course they knew that lggy was in VERY big- well terminal- trouble from the minute they discovered it -we now know the skins of the resavoirs were wafer thin, and they hid this fact for a full year .Schlumber could do little to advance the company towards a producing well as neither could Wearherfords before them ,so why should geosciences be able to do so>?.... ANOTHER wasted year . They then excaserbated their lack of due dilligence with a 15 kilopascal mudweight which i initially presumed to be due to the tremendous specific gravity pressure in the well bore to which they reffered to in a later RNS addressing damage to the well. And now it turns out it was to keep the well from utterly collapsing . Yet rather than come clean they chose to play for time and keep everyone - except insts-in the dark . You can bet institutions did not shell out 16.5p p/s for that debacle . Whilst the board have not technically broken any rules nor regs they should perhaps glance back to the RNS of Decembre 2009 which gave not an inkling of poor resavoir characteristics and virgin pressure- au contraire- they went out of their way to give ONE side of the story- the glowing side -of massive columns of gas on one level and sweetest oil on another . Thats pretty sharp practice by anyones definition along the lines of Frank Timis / Kevin Foo . But thats what makes the city . And one would be remarkably naive to think otherwise .So i am philosphical as i say............lt seems the bigger the lie the more people believe it . { Stalin } ...Quite ironic, isnt it, that in this very area ,in the few short years Shell Texaco and Chevron were in Columbia -before they left due to a plethora of economic and social reasons in the 60s - they managed to twawl 1.92 BILLION barrels of oil from the middle Mag valley. What is more ironic is that over 12 of the big wells were within a 160 km radius of Fenix .lsnt that typical of this company ? Well isnt it ? .Chaco revisited . You have to laugh. ............l would not mind so much had it not been for the fact that ALL of my other Columbian oil juniors have soared recently on the back of the spot oil price !! At Amer senior and middle management are top notch . lts top tier management that need to be reassesed . ..This board need a full time "hands on" younger pure 100% geologist joint CEO who is young and hungry but with big finds under his belt to perhaps initially assist Wardle who lets face it is in the autumn/ winter of his career- and then take over.. But most all it is imperative this company find a chairman who is an oilman through and through.!!! . This is imperative .Lets face it; Clarke would prefer to talk about cricket or fine wines ,for 24 hours non stop than string a sentance together reg. oil . Another few years wasted at great cost to the company ! Someone like Lord Asquiith who recently left JKX would be ideal. .........................BUT dont get me wrong .Not all is bad. . Nothings changed reallyat the coalface , as they say. Not really ;-)) To be brutally honest i am of the opinion that those that have sold their shares at these levels have made an error . You see -As yet everything is there to play for. What varible has changed - lggy was written off by RBC immediately as was lsa and accorded no value in their note ,,, As far as 2011 is concerned we have a high impact drilling prog.in place which is fully financed and CAPEX will be at the lower end as a consequence of lower rotary count .What with one of the wells being perhaps an extension of the giant that sits across the border in Ecuador and a full workover on another that produced 800bbloe p/d with 1960s tec, i see advancement here .And this is what the institutions paid for .Mind you why didnt it occur to them that the most prolific area of Columbia for oil is most certainly in the North with the legandary Llanlos basin which spans both middle and lower magdelena valley.- juste where we are drilling - lf we dont drill another well or two at Fenix we are severeky resticting our COS and would qualify toregister as a charity and start digging roads for the citizens. ............that would be Clarks job ......................anyway Lets play ball

The thing is why wait for the share price to recover when there are so many other investment's to put your money in with a better chance of success within a shorter time frame.

Such as?