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.

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!

Apart from now being in a position to give positive news flow as they overcome the temporary glitches, spud the next wells etc. my concern is that having managed a weakening of the sp the board may use this period to award themselves a new tranche of options. I hope that they don't but I wouldn't stake any money on that being so.

Other than that concern my view is that this is moving forward quite satisfactorily, albeit slower than most of us would like. On the other board many seem to spend their lives fretting too much.

FoxDavies still like it:

"We continue to monitor the progress of Amerisur, and believe that the 1Q'13 reserves update will bring management and investors alike the rewards for the investment that has been made to date."

Read more: http://oilvoice.com/tw/cb9a038f7a6e.aspx#ixzz2EmWBq8zg

It is a buy according to those that 'know'. Sell at your peril!
31st December min 5 bod!!

I can only try to pass on the message. P5 shortly will take us way way beyond 5k a day. P9 on full production should do that by a long chalk.
Once this group are stabilised we will produce in excess of 5k without breaking sweat!
Add up the free flow, non-choke, figures for what we have already. Nigh on 7k a day!
No other oil share in the market with this potential!! quote.

SS

Maybe time to update the header?

blackdown, I'm waiting for the Reserves Report, although I also feel that those who follow this board also know the story already and I am doubtful as to how many others visit this board.

Fair enough. However, I suspect a few more might visit as things unfold over the next 3 months or so.

Hi: do please keep posting - I agree this has great potential, though I don't currently hold any shares - but would if I had the spare capital sitting around. Maybe I'll move things around before the end of the year...

You don't need any others than this really.
Maybe FAST in early New Year for quick turnaround by March/April? CAZA looking good for run into late Feb.
Other than this there is nothing in the running, comparatively.

RNS: I am sure this has its benefits, but what can Investec do that RBC cannot? (Shore Cap shown the door?)

bwd, I'd say that the most likely is future corporate activity, but maybe not just yet. Need to have done a few more drills - in both Colombia and one in Paraguay, then possibly a country split of the company sometime next year, followed by a sale of the Colombian part.

OK, thanks SS. Hopefully they can give it a bit more exposure in the meantime. Maybe we'll also get some good Plat updates early in the NY, if not before.

Maybe some of the future activity will be sorted during the Investec Ashes ?