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.

Right on cue an excellent rns.
2517

Seems to have gone very quiet on here, yet it has gone up slightly over the past few days......does anyone know if there's any particular reason why ?

Possibly Fenix - funding agreed? Just a thought from another B/B

Due diligence completed but no guarantees on deal. I think some new seismic data is also due. RBC also back in the saddle.

Since found out that Amer is one of RBC's tips in their top 20 performing shares for 2012. It has to do some drilling sometime!

Let's hope they're right, it's certainly taken it's time to start moving again. Totally agree Sharesure, got to start drilling again sooner rather than later. Would be nice to finally get a decent return out of this. Did RBC mention any figures as to guestimates of what they reckon the sp could reach in 2012 ?

tudwick, I didn't see the recommendation. I suspect it didn't and in many ways much depends upon whether we hit Amer's revenue forecast put out by the chairman at a presentation.

Sharesure I recall last time under priced options were issued, you had some feed back from the II very quickly. Would appreciate if you hear anything this time to keep
the board informed if you can. My view is enough is enough this time!

M/L I can still recall the blistering (his) conversation which I had with our chairman for having the temerity to suggest that he had not acted in our interests on those options; fortunately a lot of institutions agreed and he was forced to climb down on what he had proposed. I will check with a City friend whether the institutions were consulted on this one (not in my view a foregone conclusion with this chairman). If he hasn't, I suspect that he will be in for the same battle again.
I am still mystified as to why he seems to think the Board's current performance is anything out of the ordinary. We know that there have been some delays which were out of their control but we still haven't drilled anything for a very long time. Last year's production target was missed by miles and we are already one month into 2012 - has the road been built yet? Are the rigs ordered and on their way?
RBC seem to have been persuaded that he will finally get this company going this year. I hope so.

Cairn Energy, the oil explorer, has withdrawn plans to award and Chairman Sir Bill Gammell £2.5m in shares after opposition from shareholders.

The company noted comments from several institutional holders, and has determined that it will withdraw resolution 2, which proposed the share award.

Cairn's withdrawl comes at a time of increased political focus on excessive boardroom pay.

24-01-2012

There is definately excessive board room pay here in my book. These latest
options are free they dont even have to pay for them!!!!!

With the board now have over 10% of this Co in Options is down right
robbery IMV

M

This seems to get a nice lift each day after the Canadian exchange is open. The company presentation on their web site says that everything is in place bar a rig on site and actually drilling. Maybe that is to be announced a little sooner than the last RNS seemed to suggest?

Interesting Sharesure. Early would be good! But why a link with Toronto. RBC native clients?

bwd: Yes, i think that they have been buying steadily. Not surprising as RBC have this in their top 20 performing shares for 2012. Hope that they are right. I bought a few more on Monday which didn't immediately look too good a move by Monday afternoon but it has since.

Yes, definitely a good decision! Another 14 per cent up... and before breakfast time in Toronto.

Plus some decent volume for a change.

Its like we are the last to know whats going on and never seem to kn
ow why the share price has dramatically moved in ANY direction.

Thought GC looked particularly smug in Abu Dhabi considering the cricket - may be with good reason.

Decent rise today albeit on low volume.
2517

This looks set to travel much higher as testing continues and then spudding in March (which begins tomorrow!) Although 12 months behind where the company implied they would be at the beginning of last year this now looks a very decent prospect. At last!!!!!