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.

And perhaps the 45p barrier.

At long last this stock now looks to be set fair for a good run in the sp. Whether it can become 'the Cairn Energy of S.America' - something I have always thought a possibility now depends upon getting a deal done on Paraguay and Fenix. For those who were in at the start (1p/share all 10 years ago) I still don't think it is time to take any profits yet. I won't be.
Any folk who think differently and want another share to look at (where the timescale is in weeks/months) could take a look at US Oil & Gas (quoted on the Danish GXG market on a matched bargain basis, but planned to be available soon via ADR's, so worth getting there first). It is currently taking a breather at £4.00/share because there seems to have been a few shares available as T20 traders have been forced to sell rather than be allowed to roll their trades. There is some very significant news expected in the near future which, if it lives up to what is, will send this stock skyward as it has only some 42 million shares in issue. (Drilled already and currently testing several pay zones in Nevada, USA. Apparently a production well head has been installed so draw your own conclusions as to how much oil and how soon.

I'm hanging for for £4 here SS. Looks like might get a US quote in early Spring.
Flow rates for P5 could be spectacular when SLB report.
Several bits of news due shortly all of which will spur the sp. Fenix and Paraguay, not least, amongst them. Plus new block in Putumayo in upcoming ANH rounds.
I'll have a look later when the US opens. Could top 45p?

More good news issued today.

SS you were bang on about the strike price when you suggested if it were rumoured that by hook or by crook that is the price they'd get.
I have had that statement in the back of my mind since and it came true today. The figure mentioned then is the 'rumoured' discount price to the chaps with the funds. Fully subscribed!! it will rocket afterwards well past high point of year.

So, probably being ignorant here, but are us small PI's going to be offered any of these new shares, or are they simply going to be snapped up by GC's buddies before we get a chance ?

tudwick - they've all gone! (Not for the public anyway, only recognised investment companies etc)

Truth is the discount was negligible, and I believe raised about £1.25m more than stated yesterday. Looking very promising.
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Today's RNS is likely to get us to where we want to be a whole heap faster. To get the shares away at just 1% discount to the market price knocks on the head all of those on another board saying that this stock is over-priced. I would expect the subscribers to have been told what the next 3 months will bring (making them insiders which is immaterial in that they are not allowed to sell during that time anyway). The newsflow this side of xmas should be spectacular. My money is on 5000b/d being comfortably surpassed.

Brilliant RNS. JW is a genius. You can feel what is happening now. They have mapped out the future like the seismics can see the oil in Platanillo.

Once JW gets to drilling oop north in Platanillo near the sweet stuff Suroco found in the block above we will have proven the whole 14km x 5km block is pure oil and top quality premium grade at that. The further north it goes the better the quality or so it would seem.
The next blocks in the ANH round are based on extensive seismic takes done when they were doing Plat. They are not taking blk 13, and perhaps one other, blind.
Paraguay drill early next year will be very telling. One whiff of oil, and I think they will find it, will take us into orbit.
Fenix partnership is interesting. I await to see how much they will put in our coffers and for what % of the licence.
Paraguay Partner has been mention and epic begins with T and ends in W with an L in between..but we shall see, it was only an assignation.

Uponthelowdown, makes good reading; who have you been speaking to? Probably best you don't say on here, but the Paraguay partner's identity keeps cropping up. One of those times when the weekdays are days to look forward to! Barring a Eurozone meltdown kicking the market into oblivion, Amerisur looks set to have a good solid lot of news ready to flow and an sp that will rise quite dramatically over the next few months.

Oh and P9 next week to help us along.
It is a while since i spoke to that particular little birdie SS but he generally has a good idea of what's going on.
The new stuff re: other blocks etc is another chatty type.

I hope the rumour the new Greek drachma has been seen in Malta is that, only a rumour.
and I hope they can hold off, if they are going to do it, for a little while longer. Maybe they will see the NY in with a bang? New year new 'old' currency?

A good fortnight for these. Look set to produce some stunning figures shortly and exceeding their calendar y/e 5000 b/day target looks to be a given with very much more early on in 2013. If the Farc talks in Havana next week are successful that could herald the return of many more majors eager to snap up producing acreages. Fortunately, Amerisur has some good fields!

Off thread, USOP is still worth buying at c £4.35/share in my opinion. The CEO did a televised interview in the States last Friday but then issued an RNS on Monday seeking to curb speculation ahead of announcing flow rates for their Eblana 1 well. The Americans who light have shown an interest earlier in the week probably ended up more pre-occupied with hurricane Sandy and NYSE being closed but they should show up some time soon and with only 42m shares in issue and the potential of their field, it looks to be a stock that will go very much higher.

lots know of buying in the last 5mins. anyone know why?

I am a new investor of this share........This morning infact.

Best part of 30m shares were bought in the last 5mins of trading?

Could this be good timing for me to have bought into this share?

30m......Now that is huge!

GLA.........Gerponville18

Explains the rush of buying late yesterday. Looks to be good news retaining 100% of Fenix, confident of future funding of Fenix, bodes well.
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.........leaked news yesterday......again.....shocker

If, and its always a big if, the now SP is maintained I for one am already showing a profit - just today - well into four figures.
Hope its a Merry Christmas to all holders especially those, like me, who held Chaco for some years previously. Sharesure in particular has encouraged me so "sit on my hands"

Keep sitting! RBC will put a lot more than 75p on Target for eoy, next week after P9.

Today's RNS looks to be all part of a shrewd strategy. No point in sharing Fenix when the company looks set to be awash with cash and it encourages larger oilers to start to get envious about how they can get a stake in this.
I am expecting a further RNS confirming that production has surpassed the 5000 b/d year end target. My reasoning is that the first 3 wells of the suite of 4 were all placed on production but with a choke restricting the flow rate. Now that all 4 wells have been completed there would seem to be a good opportunity to gradually apply less choke. The updated reserves figures and RBC's updated sp target should also help keep folk interested.
Shares Mag and IC seem to regularly comment favourably now - which makes a change as they were quite late to see the merit of what Amer are achieving. The only potential 'fly in the ointment' for me is the risk that the Board yet award themselves a hefty options scheme. Quite happy to fairly remunerate directors but in the past I have not always considered what has been done on that front to be merited.
Oakapples , you have been in these for a long time too. Well held - in my view this is where the journey starts to get much more interesting. - Paraguay, more wells in Plartinillo and sometime a major is going to want to make a move for the assets - particularly if the door is closed on farm in deals.