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 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.

tfc

another nice 1m buy there at the close

?

Do you mean the 500k & 400k?

If so, AT trades, someone wanted to sell at 21p through the book and someone was prepared to pay 21p.

A meeting of minds if you like, nothing to get overly excited about.

Not sure if this has been published before - but this weeks Shares Mag has an article with a Buy Recommendation for AMER as follows.

"South American focused Amerisur plans to ramp up production from 570 bopd to more than 5000 bopd by the final quarter of 2011 as it drills six development wells on its Platanillo field onshore Colombia. Ahead of meeting this production target there is potential for a significant reserves upgrade when the oil firm announces the results of an independent audit on its Colombian fields, Platanillo and Fenix, at the end of March.

In the 192 million market caps other base of operation, Paraguay, it is conducting a seismic survey on its San Pedro block, which should be completed in the first 6 months of this year. The group plans to drill a first exploration well here before the year end, targeting 200 million barrels of oil. With a 100% stake in all of its assets, Amerisur is able to dictate the pace of activity and enjoy all of the upside from any success.

Shares Magazine also selected AMER as one of its top 10 in its UK hottest momentum stock having increased in value over the past 1 month, 3 months and 6 months by 33%, 50% and 58.5% respectively, with a 2011 EPS Growth %age of 665%.

more bigs buys today to follow on from fridays big buys

pth-your post 2717 has to be voted as the most underated comment on this board to date.

TFC-we got to 22p this morning without news. Fully expect to see progress continue pricewise in the build up to the next RNS which I was informed on 19th Jan that it would happen within the next month...or so.

Yuff

underated? Why?

It was a simple explanation, surely you understood?

Ptholden

I think yufff's point is whilst your explanation was simplistic it was factually incorrect, it's irrelevant whether the buys were at trades or not, they were buys - whether the mm's have the shares to complete the order is another matter. Judging from the trades today and the price movement they probably haven't.

Some of this rise may be Shares magasine article last Thursday naming Amerisur as one of its 10 hottest stocks for the next year. Makes a change from the mag telling folk to short them last year. At least they have cottoned on in the end.

caveat emptor ..... apparently shares mag also heavily promoted ascot mining all based on faulty premise

Cynic

Yes i read that article by Tom W

have only read last couple of pages. thought id take a look at the chart, expecting to find a nice/reasonable shorting opportunity. i got a surprise. i didnt. in fact i found chart suggests to me further potential short term higher levels.the caveats are the daily gap down at 19sh level along with daily rsi divergance,but that could be wiped out by a swift move up. for those reasons i am undecided and im staying out.
good luck to all and please DYOR. (todays closing price 21.8)
regards
jkd

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