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.

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.

This is great, long may it continue...5yrs+ also

Seems like 25yrs for me! Has been a long time, had given up on this one but all coming good Question now is how much farther has it to run.

I'd like to think a lot further, hopefully just the beginning of a new era for us old Chaco holders.......

12.8p on 30/01/06 so similar time-frame, have topped up and sold a few times since and retain a nice holding. This is starting to get really interesting and profitable so I share cmp0325's sentiments. Good luck all.
2517

3 million shares bought and 800,000 sold but the price goes down 6% - don't get it.

Harry6, Nothing too unusual in today's sp movement. Amer has a good run and was probably an easy stock for a little shake out. The underying reasons for all of us staying in this are still the same and within the next few weeks that should be confirmed to some extent. The stock is getting a better following amongst brokers; a cynic would say that some of them know more than they are prepared or able to let on since they seem happy to endorse the mgt's plans and 'predictions ahead of the RNS's due in the coming weeks. I may not be the biggest fan of the company's chairman but I would bet one thing that he would not let himself make a fool of the City brokers that are becoming fans of this stock. That would lose him valuable friends quicker than anything.

Sharesure - thanks for your comments. I'm a long term holder from the Chaco days and I have to admit I sold half my holding this week just to lock in some profit. It's been a long and arduous ride...

Harry6, That wasn't a good move in my view; I know plenty of folk will say that it doesn't do any harm to take a profit and I would be one of them most times. But on this stock, reserves, ie oil in the ground, was being sold at $30/barrel when the oil price was under $80/barrel above ground. If Amerisur even prove that they have half what the intimation is that they have in Colombia alone, then that could have a mkt cap value of over $4b on the basis on a takeover. You will know that there has to be an update by the end of March, possibly an RNS sooner than that on other news, so surely it would have paid to make this stock an exception to the 'never wrong to take a profit' rule. This has plenty more in it, and I still firmly hold them having been in since 1p a share, and have paid progressively more for further shares over the years since I bought my first stake about 8 years ago. This has been a slow burn stock - but some of that has to have been down to the time it takes to get all the EIS information/agreements and the necessary government approvals. Now wait for the avalanche of people telling me I am wrong!

Sharesure - I take your point entirely but as we both know the market does strange things and I have a number of holdings that looked good, once!

A lot of people seem to have agreed with me with over 3mill shares sold today against 800,000 buys, but the price rose slightly, exactly the opposite of what happened yesterday, so who knows what's going on. I will buy back if the price falls to 21/22 as I agree with you the potential is definitely there.

SS

Have to say I agree with you regarding a hold.
I have seen plenty of shares go from where we are to 2+, and if you keep selling half every time it doubles you will have lost out on a lot of money by the time it gets there albeit have made a nice profit. All to try and get an extra 10/20% of shares, plenty of people have tried to trade them the last 3 months and come unstuck unless your timing is perfect or you buy into another stock that has doubled, no easy thing to do.
One has to ask the question why are the inst's so keen to keep buying at these prices as they know what the potential is.

Harry6-there are rules and..knowing when to make exception to those rules, I am with SS all the way on this one, not long to wait now.

Evermore - I completely agree with SS about this one, but I can't help remembering how many times in the past I have not taken profits on what looked to be very strong situations, only to watch my profit and most of my investment disappear.

As is the case with RCG where I could have taken a great profit at over a quid but didn't and watched it fall to 18p, which, funnily enough, is where I reinvested and have seen a big rise there, up 18% this morning as I write.

Not clever, just a bit lucky and as I said, I will get back into Amer on any weakness.

And just to prove the uncertaintity and instability of the whole thing RCG announce they have no explanation as to the share price rise and back it goes to the opening. Durr.

harry6

it all depends how much confidence you have in JW, personally i have lots of confidence in him having spoken to him several times and thats why im not selling any at the moment.

Na - again, I completely agree with what you say, the fundamentals are definitely good and as you say, you have confidence. But there's a slight fall in the SP today with 2 1/2 mill sold and very few buys so I'm plainly not alone.

lse "glitches" and stop losses...
http://www.telegraph.co.uk/finance/markets/8329318/LSE-roll-out-dogged-by-teething-troubles.html

Harry Na a nd SS are correct in this instance. I am not a seller in fact I purchased more yesterday. Amer is a once in a lifetime chance to become free of debt. It has taken time as SS says and yes we have all felt the pain along the ride.
However having been to all the AGM's I agree that in Wardle we have a toop man and very well connected. Dont underestimate the importance of Victor V in all of this.

I eagerly await an ops update and final oip reports to the ANH by end March.

As na says too many brokers are putting their insti clients in to this for it to go tits up.

Rex H has an amazing track record of buying low and seeing his investments grow.
The fact that he is still in an still purchasing makes Amer a no brainer for me.

People are talking about a 2 share price.Most ridiculed this. Now SS says 4b market cap which is nearly 4 per share.

The stakes are rising. Stay on board!