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.

1.4 million sells,and no price drop,strange!!

Everything shown as a sell are not always sells.

Selling now seems crazy. The latest announcement - although rather obscure in parts - appears to have put a floor to the sp.

Other news is certain to come out over the next few months. As ever, patience is a virtue.

I agree blanche,but the prices are closer to 7.75,maybee a big buy being filled for later.

Several people on a#f#n are saying ther buys are showing as sells as well.

Gentlemen,we can look forward to a short term price of 11/12p-this from my contact in the Sq M.
The next piece of news is imminent and will result in greater earnings from oil flow than previously expected.

Would be nice if your contact proves true Sivad

Sivad
That is good news- next week should be a good one.

roll on Xmas - we should have a much clearer idea by then - and with a bit of luck - we should all be a tad wealthier

sivad clearly has a direct line to the CEO's secretary

Hi Sharesure,

Sorry for the delayed response to post 266, I've been away from my computer. Thank you for the info, helpful as always.

Cynic: amusing as ever, and reading my thoughts precisely.

From today's press.

Every oil and gas junior a potential mergers and acquisitions target, according to Ernst and Young report

The Colombian energy ministry has identified half a dozen "high impact prospects" which will be drilled by the end of the year. It says the country has "great hopes" that they will be successful. Platanillo is one of them.

An exit sp north of 1.00 over the next 12 months might be a reasonable target

sharesure do you still feel this is realistic?

Razmum, it will likely need Paraguay too since we now have so many more shares in issue. But, with luck Paraguay could be very large - it's just no one knows until it gets drilled.

100p within two years is a more realistic target, but only if (as SS says) Paraguay produces some significant finds.

sHARESURE
Do you have a short term target?

20p by Xmas

at least now that the sp has dropped with a narrower spread we can see what is a buy or a sell,i suspect the 7.98 trades of late have been buys.