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.

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.

Yes, it was bd. Very odd seeing those small sells, one after the other dripping through every couple of minutes all afternoon... and then, all of sudden, it was as if the foot came off the brake. Should have seen it coming!

Tfc

Sorry o/t but know you are heavily into gold price rising, have you looked at rrr?

Nobody post on here anymore ?

SP doing OK without too much dribble and unnecessary red herrings about other stocks. HNY

Morning : Barry: Stunned perplexity I think !

There isn't much point in speculating when the delayed (because of rainy season?) 3D seismic or the first half drilling programme for this year will be announced. Maybe our chairman is distracted by The Ashes - so after tonight's final day in Sydney maybe he wouldn't mind telling shareholders what they should be told about Amer. The sp seems reasonably solid ahead of that news.

SS

Can you tell us?

looking to add more things about to change in my view