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.

TFC, thank you for your post.

Reservoir permeability within a field can vary enormously, and I think I read that Frontera would be examining surface geology in and around Iggy so maybe another well is possible financed by surplus free cash flow from Plat 3 and Plat 4 late in 2011.
Poor permeability in one area of the field does not mean the entire field.

I suspect the COS would have to be high for another Fenix drill, 50% plus and include new geological data so far unknown to avoid another $5m Iggy 1 disappointment.

Are most of those sell trades at 13.50 buy's ?

Frankly : I don't know why you lot bother with the south american oilies...apart from EEN,...I have never been able to make a profit...much better elsewhere....(FI stocks apart)....

RF

You have just been unlucky ..... try West Africa , afren , Cove and DPL

In AFR and COV....

Just sold all mine @11.50 for a 28% lost , but had been banking profit up to around 18 to 19. put most of the proceeds into Afren and Cove.

Ald,

I don't blame you at all. I am thinking the same thing after 6 long years...

You know what's going to happen now , a RNS that will see these rocket

There is always that chance, maybe I'll keep a few just in case.

I wouldn't hold your breath!

I would-this share still has an awful lot to offer-what with a planned back to back drill programme in Q1 at Plat.

If Iggy cannot be resolved a new Iggy 2 will be drilled alongside once Fronterra release their findings.

Yuff - re the Fronterra report: I got the impression from the rns that it won't be until next year but I guess from what you say that something is due before then...?

BWD I am advised that work with Fronterra contiues both in Colombia and Houston.

OK, thanks. The asset is still worth pursuing. I guess it will be a case of where to put the new well(s).

Quick question people - Has anyone else received a phone call from a supposed american company offering to buy your shares @ 80p a share ? I know of 2 others who have also received calls over the past couple of days.

t,

Folks on the other side.

...am assuming you mean `don't touch them with a bargepole' lol

The worry is - where did they get your details from ??

that was my other thought...

from the shareholders list unless they are held in a nominee account