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.

Yuff

I didn't say there would be a retrace today, simply that following breakouts the SP often does retrace. Additionally, something I have noticed with Golden and Dead Crosses is the SP tendency to gravitate back towards the MAs once the pattern is complete. If it happens or not remans to be seen.

Here is the plan

1. Shares do a recommendation
2. Punters pile in
3 MM's push the price up dramatically
4. Punters see the rise - having been alerted by Shares Mag --More punters pile in - not wanting to miss the boat
5. MM's pull the rug out from under their feet and mark it down
6. PI's panic and sell at a loss
7. MM's rub hands in glee - fat profit, more shares
8. Normal service is resumed

Barry: Yes looks exactly like that scenario. MM name of Baldrick ?

My experience (and portfolio) reflects that this "cunning plan" is rife with most small miners.

O142
perhaps then it is good to not get caught in the buying frenzy and buy only on a "reaction" or pullback as suggested by pth. also,if wrong, the stop loss can be placed at a more sensible and realistic level so as to cause as little harm or damage as possible.
regards and good luck.
jkd

Daniel Stewart buy rating today. Target 32p.

http://www.stockmarketwire.com/display/?id=4071085&sectionId=standardNews

Nice one Dave

What is that price based on though - current position of what's already known, or taking into account (guessed) results from the testing that's going on at the mo ?

No idea Tud. Based on 2011 drilling success, I'd guess. Maybe someone who has seen the note can elucidate.

Ok, fair enough.
I was hoping you'd say it was based on info already known, as I'm definitely hoping for much higher than 32p if the spudding proves sucessful

I asked Nick what the likely date for the AGM would be for this year, his response was that it had been penciled in for 9.30 on the 10th May at St Mellon.

It has been brought forward due to the change in the year end

Thought you might like to know as hotel rooms go pretty quickly

82 B&B - evening meal optional

tudwick

its based on what is already known, if the spudding goes to plan the sp will be a lot higher than currently providing commodities carry on where they are.

Many thanks na sdaq

Suspect TFC has left for the Cayman Islands to avoid CGT !

Are there any other places you can recommend to avoid CGT Annie?

I wont have to pay any CGT for many years - having shrewly built up substantial CGT losses previously !!!!

Article in Shares Mag. highlights Amer as a prime play amongst 20 up and coming firms ready to make it big. Shares has searched amongst the 800 AIM companies that constitute the AIM market . Their research identified 103 names forecast to expand their EPS by at least 10% this year and 10% next. They then isolated their preferred 20 plays; the names they identified they consider to have the very brightest growth prospects. It then goes on to discuss each company in turn - and is much of a repeat to the article it published 2 weeks ago - which kick started the move through 20p.

It says that " the South American focused company is targetting a near ten fold ramp up in output from 570 bopd to more than 5000 by the final quater of this year. In order to achieve this ambitious aim, the group is drilling 6 development wells on its Platanillo field onshore Colombia. Results before the end of next month from an inependent audit of BOTH its Colombian fields, Platanillo and Fenix, offer a more immediate catalyst. Adding to its appeal AMER is the operator on all of its projects with a 100% stake, allowing it to dictate the pace of activity and enjoy all of the upside from its success"

It is recommending buying the shares at 22.8p. It shows this years EPS growth as 225% and next years at 665%

Lr2

Spread bets avoid cgt but dangerous in my view.
Channel islands are nice and not far away!!!!!

Very quiet here, considering...

Hi bwd,

You're right, having held for 5 years things are finally looking up.