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.

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.

Sharesure - I love the way you talk - Merry Christmas

There must be a good reason for the company missing out on providing an RNS as promised, apart from the cricket! My hunch is that the testing is on more than just the 4th well and that releasing some of the choke on the earlier drill ,but under strict monitoring to safeguard the well, is the most likely reason.
I would like to think that by Monday that process and the 3rd Test will have been successfully wrapped up.
Other news is also due, eg the additional acreage being confirmed, reserves update etc. I would doubt that any news would be held until the Xmas week so next week for news must be a runner.
Happy Christmas and a really stunning 2013 from this stock to all holders.

Well, the 3rd Test is nicely in the bag. Now for the oil RNS before the next Test distracts attention!

Hope you're right sharesure. Unfortrunately, this share is always subject to drift with low volumes and when folk think a delay in releasing news = bad news. I'm not too concerned at the mooment but maybe JW made a rod for his own back (and ours) by saying there would be an update "within the next week."

95% of the time delayed news is bad bews

bwd & Cynic, Agree with both of your views as regards most companies; I just don't happen to believe in this case that the news being released later than JW suggested it could be is because it is not what they would have hoped to release. I am sure that you both, like me, can think of any number of reasons why it might get delayed eg political, technical and just programmes/deadlines from others just not being met.

The reason I remain relaxed about the current programme is that the recent share issue was made at a minimal discount and that would suggest that those invited to participate were told some very good things about the near term prospects.

GC is a card player. He is busy playing games.
This week or we are caught up what is effectively Xmas week next week. I can't see them getting embroiled in that.
GC is between games now and maybe has a moment to give his attention to irritating matters like RNS'
No problems!!

Up early tomorrow methinks

i'm totally relaxed as haven't held these for a couple of years!

Will he use one of his jokers tomorrow or will he be reserving the update?

I'm relaxed, and I agree with you SS. Just (half-)expected a bit of upward pressure in the run-up to news. But we've been here before, so I'm reasonably content to see things develop into the New Year and beyond.

Oh well, that expains it!

Nothing much wrong D. Concrete tubing being installed to by-pass whatever is causing the slight delay. A week at most?
A new approach to an old problem allegedly. JW can solve it with the new tech he has available.
Not worried. Took advantage of the crazies who want 5k pd and 5k Now!! Silly sausages!

My view is that is a very workmanlike RNS. 5000b/d by 31/12/2012; some glitches being sorted; infrastructure issues being resolved - on that score Colombian pipelines have a distinct advantage in that both oceans are accessible - a useful attribute when the US no longer needs to import oil - so it is good to see that the problems are being addressed.

I suspect that the Reserves Report if issued now would have had either a 'work in progress' statement or a load of caveats, whereas in 3 months time it should be capable of covering information gained from some of the next suite of wells which should enhance the reserves figure. Should be worth the wait.

As always with this stock, it is all being pieced together but is just taking time. Meanwhile might as well go and enjoy the cricket starting at the end of the week and then have a spud date RNS next week to celebrate a Series win (I hope).

I confess to being so disappointed with today's news that I've bought some.

Me too D.

I note GC was too busy with events of greater magnitude to take time to append a statement today. Maybe after the series is finished and before he sits down to write his Xmas cards? I know I am not on his list..well, for a card anyway!

Next one eh??

Well that rns is a bit of a curate's egg. I did expect something more upbeat but production is up and the tech issues don't sound too troublesome.

..But it looks like I was premature, as per usual!

US market opens in a short while. I wonder what take they will have? 'Americans understand oil' and the UK market is as ignorant as you get, he may as well have added!