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.)

b>



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 are you still a buyer at this level without firm news as to whats happening?

My own view is that Fenix is the driver behind the share price move.

Do you agree?

ln short - Yes l agree .....>l 3 levels totalling 500 feet vertical thickness of hydrocarbon bearing sands did not simply dissappear at lggy on the Fenix block no matter how bad the gas build up/ mudweight fiasco/ and well bore damage { which incidentally i believe was aggrevated by the earliar attempts to rectify the matter . But at the end of the day the light sweet crude oil is still there.; and furthermore i feel they have found a way to unlocking much of its potential. ...ln addition price is reacting to the impending intensive drilling prog that Amer has already embarked upon whose positives are already known to inst. investors.

Agreed TFC 350m barrels estimated to be down there in Iguasa. Just hope FG are able to do something positive and get the black gold flowing.

can you imagine the impact on the SP if the next RNS states that Iggy 1 is flowing at 500bopd!!!!

What a battle this afternoon.

nice start to day ....currently b/o of 21,50/ 22.00 with some half decent sized buys..........................

Tfc

How reliable is your source regarding iggy?

well all l can say in response is would you hold over 1.8 million stock when s/p fell to 10.75 after buying at 14 to 16.62 and other posters were suggesting it would drop to 6/8p if your sources werent impeccable ........?? .....ln saying that dont re-mortgage the house nor sell the spouse and bring in the heavy artillery as 21p is prooving quite a battle at this moment

i am a happy holder good times ahead

thanks tfc

i wasn't as steadfast as yourself and did sell a few mainly through thinking it would drop prior to moving up on pre drilling.

A question for the more knowledgable of you guy's & being ignorant of how these things work, is there a possibility that we could have a share buy back anytime soon to increase "share holder value"?

Very unlikely since preserving all cash for drilling programme is in our better interests. That programme needs to be started soon so that a proper evaluation of Amer's assets can be made. The risk at the moment must be that a rival tries to grab those unevaluated assets on the cheap.

Totally agree Sharesure, but even though the directors share options are at stupidly low prices, surely the company wouldn't want to sell themselves short, before discovering the true value of the assets owned ? I for one hope they don't, having had the patience of an impeccable saint to continue holding these since early Chaco days.......

I held 1m of these when chaco

480k delayed buy 0.75p premium ouch!!!!!!!!!!

Thank you Sharesure, polite as ever. I just don't know where we go from here, I too have held since Chaco days & although happy to be in positive territory, I feel (this may be greedy) that I should be a lot happier by now!! The board seem very reluctant to keep the private investor informed on a regular basis, it's that bad I wouldn't be suprised if the next news release say's we have 10 wells each pumping 500 barrels a day with a billion in the ground & that the institutionals have known for weeks!! or is that me dreaming of that early retirement. Are there any (sensible) suggestions for an exit price & time scale?

tobyson, It should be well worth waiting for confirmation of reserves and drilling in first half and also for what happens in the second half of 2011 provided there is more to tell about Paraguay or a bid. I believe that they are down to drill one hole in Paraguay in addition to the 6 in Colombia. As for exit sp, I have my own guess/target and it is way north of where we are now; but exactly how much depends upon more information. I have heard it quoted that GC is expecting 1/share but who knows on what basis that is other than a round number. If they discover less it will be lower and if they prove what they talk about in the bar at the AGM then it should be higher. If they are paying $16/barrel in production costs then at $98/barrel there is a considerable profit stacking up even at 600 b/day. But they are pencilled in for a 3rd qtr target of more than ten times that by their own Business Plan. If they achieve that the sp will fly, with a healthy run up in the meantime.

with a market cap. of around 200m they certainly need to produce a lot more than 600bopd.

Halifax: Agreed. For comparison RHEP in which I have a stake has a mkt. cap. of only 35m and if all goes to plan will get 10% of income from Athena field, production due in 3rd quarter (Total 22,000 b.o.p.d.) Well worth watching i.m.h.o.

Market cap is about production and reserves.

reserves only if they are proved not pie in the sky.