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.

Great news.Once the limit positions have been cleared out this should go much better still. I would expect an updated resource statement in the next couple of weeks and that this will show a huge improvement on the current figure.

This rise in sp looks like the news on flow rates is imminent and that it will be good.

Agreed - lets hope so we have waited patiently for some years

......been a long time coming for some of us

That's a disappointing end to the day after being up 4.5p earlier.
2517

Hard to figure out why - surely it can't be put down to short term margin traders entirely? Agreed, it is disappointing but it doesn't change the underlying story which will emerge here. This company looks to be headed for a dramatic increase in its production and therefore cashflow which in turn is going to make it attractive to others.

They play a long game at Amer..and I like it. I am expecting something very positive but it will be a slow build rather than a spectacular take-off. Very happy with reports of what is being said..very happy!

With GC at the wicket it is bound to be a Test Match - which, I for one, prefer.

As long as he plays like John Edrich..he is all right by me!

This mornings RNS could see the return of Garfield Sobers -

Looking more and more promising.
2517

Much more to come..much more..15k a day in three months imo.
Getting it to market is the quandary and I think they may well have this sorted. 15k is a boggling amount of oil revenue. $1m a day and I am being conservative! and it is more than poss in the very near future.
What are the Chinese up to in Paraguay is perhaps the next question? $10bn promised for infrastructure in Paraguay and Argentina amongst others. Have they got eyes for us? and who will do a 'farm-in' for Fenix. Amer are going to be very busy bees and soon!

If all comes to fruition, I'd love to see the figures bandied about with regards a share price offer for a takeover bid......hopefully not for while yet tho, let them build up their portfolio even further to make it worth more when that time comes

the word on the street is that Rex H is a benign shareholder bent on building a substantial holding at extremely low prices with a target of??..well a lot more.
He has taken several companies over previously! Not quite as benign as I once thought then.

Company: Daniel Stewart

Ramp-up in Production Commences

Exceptional results from the first well of Amerisur’s campaign drives an increase in our target price.

Platanillo-3 confirms Amerisur’s seismic model and flows at 2,340 bopd from the U sand. It is now producing at a controlled rate of 1,500 bopd

Amerisur is on target to achieve its target of 5,000 bopd production by year-end ? We anticipate that the expanded development plan will see an uplift to the suggested plateau production of 5,000 bopd

We raise our target price to 51p and re-iterate our recommendation 29 June 2012 Operations Update Amerisur Resources Oil & Gas Exploration and Production AMER (FTSE AIM UK 50) Buy

Upside 52%

What’s Changed (since 26/04/12)

2012 EPS Increased from 1.8c to 2.4c

Price Target Increased from 38p to 51p

..and just for the record: RBC 60p

If anyone here has stayed the course with this share, further news (and most likely very good news) is imminent.

Also worth looking at whilst there is a temporary lull in its sp is US Oil & Gas (USOP). It was on Plus but is now on GXG (matched bargain) exchange in Denmark. News there is imminent and with only 41m shares in issue, 1100' of pay zone discovered in Nevada on its first drill and some very substantial firms engaged to exploit it, the next RNS should send this way beyond the current sp. Check it out on '3 eyes' where there is a very informed Thread. It is expected that US interest will be pick up on this when ADR's are available which the CEO has confirmed is being worked on. There are some very heady sp projections if confirmation of the field's anticipated size is confirmed or exceeded. See links below:

http://www.proactiveinvestors.com/companies/news/31319/us-oil-gas-considers-adr-to-boost-north-american-investor-appeal-31319.html


http://www.iii.co.uk/articles/42367/view-top-us-oil-and-gas

SS

Re your first sentence, you seem confident re timing and content.

blackdown, just counting the time it takes for what they are doing. ie no inside track. Newsflow on a regular basis until the end of the year looks to be a given purely because I am sure that they intend to hit their production target (hopefully exceed it!) plus oil may well become a big issue in the second half of this year.

Interesting read that USOP Sharesure, thanks. Sounds like another worth looking into. Currently heavily invested (for me) in Amer and Kmr, so cash shy at the mo sadly. However, I can't seem to find the current share price for USOP though, as it doesn't show up on iii