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.

spread now 12.75 /13p ......anticipate a few sellers .. Will stock at these prices be absorbed by RBC who have made no secret lately in their interest in moving into UK mkt lately what with high profile headhunting from a number of high profile brokerage houses like JP Morgan / Cas.....mais qui sat ?........A few more iis taking positions which is always nice to see

Yes, interesting to see the move up despite sells apparently outnumbering buys.
Will probably get sold on again for dollars.

TFC, Have been lying low on commenting recently - it was just too good a buying opportunity. I have stopped for now.

I know that I seem the eternal optimist on this one but I do regard Amer as a one way bet barring a huge catastrophe on that continent, like a war between any of the nearby countries if it sucked in Colombia - (and I don't think that is at all likely given the self interest that would help ensure that common sense prevails).

My expectation is that they continue the improvement in production over the next 6 months whilst at the same time they show that their reserves are there in quantity. That gets followed by someone seeking to take them over (the bonus being we rid ourselves of GC!). As for take out sp - I don't really have a personal target other than a multiple of the current sp assuming there are proven reserves well in excess of current published figures.

So, the CEO and RBC pitching to investors in Toronto last month. Muy interesante.

TFC-I like your track record-lets hope it translates in to this stock.

Tfc

I think you underestimate the number of shares inst's have been picking up. They have been buying since the price was 13.5/13.75 after it was announced they were doing a pressure test at iggy 1 so I suspect they have taken 20m shares off pi's hands and shorters hence the reason that any small amount of buying seems to move the price up.
They put a floor on the price at 11.5, it seems they have deep pockets and, at the moment, are prepared to take all the sells it will be interesting to see unto what price they are prepared to buy in anticipation of plat drills early next year.
On a separate note I see the website has updated the drilling schedule and izzy 2 is still planned for this year which I am amazed at considering they have told us they still have problems with both wells at fenix!!!!!!

Nas: There are now saying this about Iggy, which seems a little more encouraging.

Latest Developments

Iguasa-1

Blocking material caused significant problems now removed by 3 separate treatments.

Well has responded - improvement in flow characteristics.
Recently produced at rates of 100 bopd dry oil in natural flow not continuous flow.

We intend to continue to observe and analyse draw down data indicate anomalously low permeability.

...A broker @ Pritchards who happens to be an old schoolfriend - rang me today with 3 stocks to investigate Among them to my surprise was AMER in whom they have taken a principal position and seemingly expect 20p fairly quickly .,,,,,,,,,Things starting to take shape on multiple fronts. ...............and the herd yet to follow.... spread now 13.25 / 13.75 and buys outnumber sells by 2#1 which hasnt happened for a long time. ,,,,,,,,,,,,,,,,,,,,,A good day for junior expos companies all round / ......

That's good new's because I have bought back in today

Amer bid / offer - 13.75 / 14p ...within a few mins of mkt opening .

sources on other boards seem to indicate that there maybe news tomorrow. Who knoows !!

Yes - but what is it? What has JW been telling the Canadians?

Cant see any news in the offing that would create a price rebound-but RBC seem to have been doing a great job in mopping up shares at 11.5 and now hopefully selling them on to Canadian based clients??

Hope it's not a damp squib, or a "surprise" like last months.
Developments at Plat? New recruits?
Maybe, just maybe, mgt will have to start a new regime regarding news updates.

Meanwhile, I think this might go a little further today.

TFC

Posted on another board-what is a principal position?

Yuff: I use Pritchards as one of my brokers and I spoke to them this morning regarding the above post and they told me they never take principal positions in any stocks anymore !
I agree though that this has started to come to life again just give us a good update on things soon.

BWD-I agree L2 looks decidedly more positive and that the next move is up.

Goldman Sachs has recently written a report on Oil Explorers & Producers and has Amer as a BUY with some encouraging comments; maybe explains some of the additional buying.

Pritchards inherited the original principal position from the t/o of Wills and co...........and are adding themseves

There she goes dave-just like a big wave!

Sharesure-plse post the link from GS

tks