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.

Oh no - Investors chronicle - kiss of death

very true BH. Very true. But only when you are in the know. IC is closely followed by novice and trader alike -both with totally different agendas of course..Namely one going long ' T'others preparing to short those going long. . l am getting more than a little impatient with the companies attitude reg, news flow related to the up and coming drilling progs. l have been told by sources within other oil companies opping in Colombia that Amers strategem and logistical objectives are in a most advanced stage Yet we-the OWNERS of the company - are not even yet informed of the identification of the leads we are about to drill at both Fenix and Plat . Are deep drill rigs sourced for Plat at a time when the rotary count is so high ?. And at what cost ? The same sources feel the already 2 producing wells could easily be cranked up hence the rapid construction of storage facilities ...l personally feel Fenix in the MMV along the San Marta faultline which is surrounded by bonana style strikes MUST be an aggressively pursued and given parity with the more intensive drilling planned for Plat. Apologies for repetively banging the same drum but this area inc. the legendary llanlos basin contains the 3rd biggest strike in the past 30 years.. /..lncidentally..lf we can turn a gross profit of 2.3 million stg on a mere 600bbloe p/d then juste imagine what a strike of 16,000 bbloe would do to value of this company. Well Petrominerales did juste that and a mere 50 km from Fenix ......and not once but 3 times on the run .

Tfc

The tens of millions of shares being removed from pi's over the last 3 months wouldn't have anything to do with amer's tardiness and letting the small pi know the progress, meanwhile at least XEL, and agq are keeping you happy.
Bet amer are getting slightly irritated by IC and othervstarting to initiate coverage and flagging up amer.

Summat's brewing.

Yes, going strong atm.
2517

nas ......indeed we have drawn the dragon from his lair ......As you stated; and this is a moot point which i meant to re-iterate myself .Perhaps as many as 80 to 100 million shares have been cajoled from a vast army of smaller and intermediate sized PIs and found a new home in the pocket of a few eager big players which is exactly what GC wanted . . . And look at the result .-S/P-...up from 12p not so long ago ( before RBC became our nomad and citadel for lily livered sellers) to todays b/o of 18/19p ....Thats a very large percentile gain i am sure you all agree .......Says it all really doesnt it ? . l furthermore agree with you on the subject of Amer not yet wanting to be in the public eye as yet with coverage iniatiated by a plethora of brokers all saying it is well undervalued . Cenkos and G/S both have desk notes stipulating 29 to 31p as fair value - and thats before a drillbit even touches the ground ....We are on their radar ....Tell me Nas. How would you view the rise of the Fenix ? ( awful pun -sorry ) .......Evermore raised some intersting observations reg. this matter quite recently-and i feel inclined to agree with him .......All that oil hasnt juste dissappeared ................. . ...

tfc,

They want to keep under the radar to avoid predators.

Dont know if I go with all this under the radar cloak and daggers stuff. Directors share options are there to make them money. Thats all they and us are in it for.

With regard to Fenix I am convinced having met JW at the AGM and shook his hand that the guy is genuine and sincere. So when he looked at his watch in answer to the question when will fenix produce I still believe that a 7 iinch casing ws not installed to go rusty.

Fronterra have been called in to do a job at a cost of 000s of US bucks. I believe they will get it right in the end.

TFC you contacts will have an inkling as to how they are doing??

The rise in price is in my view the coverage by the big houses and Fenix rising from the ashes.

Time will tell.

Surprised we have not yet seen revised holding RNS as yet.

I am confused, not for the first time. I thought Goldman Sachs had a target of 19p-ish, and last week changed their stand from buy to neutral. Has this changed?
Also, I assumed that drill locations would be decided once the 3D work was complete....

I believe TFC has more GS and Cenkos info than has been made public Dave.

Tfc

I am sceptical of the problems at fenix, although jw was very convincing(at the agm) it has been very convenient for RBC and their clients that all the focus has been taken away from a potentially huge asset.
The sp should not be where it is today based on info in public domain, it's where it is because rbc have been buying 10's millions of shares as quietly as one can do the buy product being 18.5/19 currently.
The bod have kept the city very happy not only with the placing but the ensuing fenix debacle.
The board or the city did not expect the sp reaction to fenix drill success hence the re-negotiated share options with the exception of jw.
The ducks are all in place
Placing to inst's
Rbc clients have filled their boots 11.5-18
Drill bit ready to go next quarter
I don't think they will hold the sp or news back for much longer

.......call me cynical, but it all sounds very cloak & dagger. I can only assume if what you think they've done is allowable, then there's not much anyone can moan about really. Very devious mind. To be honest, they never cared much for the small PI's from the outset, so no change there either. At least things finally appear to be moving in the right direction after years of disappointment

I really do think that rather like Vince Cable that some of these comments and concerns are best kept private - I trust there is no need to enlarge or advise why but letting matters take their natural course is, to my mind, to the benefit of shareholders.

TFC, the sandstone must have been permeable once to let the oil in, now "stranded" after heavy formation damage maybe one issue, the other is the deeply dipping, near vertical beds Iggy has drilled into, which are also causing complexities in the way the oil and high pressure gases distribute through the formation.
Isabel might cause less problems-both in at zero so whilst some low modest production is likely this upside is not discounted.

Yufff - Ok, maybe it will appear in due course.

Evermore - what would it take to free it up? Can Iguasa still come back to life?

Oak apples

Perhaps you should let mam know your thoughts and everyone can keep their opinions to themselves and we can let the inst's take all the profits!!!!
Meanwhile I prefer to know what tfc thinks and I'm sure he would like to know what JW said privately at the agm.

bigwavedave-I am not sure but remain hopeful, the oil is in-place, it is a contingent asset and could be much more, let's reassess in March when Fronterra Geosciences reports.

Recent investor presentation information now on AMER website.

evermore - thanks. On LLT so,I guess, still a goer.

Strong finish.