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.

The above certianly paints a great picture sharesure and a very good summary by youself, given the number of potential press releases noting positive results i may delve deeper and look towards a purchase next week.

Assuming there is no Chavez esque president in charge of either country who might be inclined to steal their assets?

ss,,im hopeing to see some of the rumours turned in to fact this week..

http://www.iht.com/articles/2007/02/26/news/paraguay.php?

Uribe may be a friend of America, who are becoming increasingly friendless in a world growing short of resources.
Paraguay's 'Bishop of the Poor', Monsignor Fernando Lugo, is a main contender for the Presidential election next year, and a great admirer of Chavez.
Don't start counting Paraguyan chickens just yet!
Colombian is where our immediate future lies!

more importantly, don't forget there is a long long long way from interesting prospective sites and actually finding and producing commercial quantities of oil ...... for all that, not an uninteresting out and out gamble, but imo not worth more than say 1% of one's portfolio money - i.e. plenty of safer and easier ways of making decent money even if not as exciting should, by some (relative) fluke, AMER prove to be a winner within your lifetime

The Paraguayan Govt is fastracking the exploration process probably to offer the deprived of Paraguay a better standard of living, or maybe get the protection of the US against the wrath of the poor?
The oil exists in Colombia; have no doubt of that.
CDS may show soon enough whether there is Oil&Gas in Paraguay. If they do it will benefit us as we have areas closer to means of delivery into Brazil that they have on the Bolivian border.
Alea is more than a tasty morsel and the new CEO is capable of delivering sooner than some give Amerisur credit for.
I look forward to developments regarding our percentage thereof with Repsol before the oil is sourced again.
Paraguay is for next year, or the year after that maybe, unless they invite a farm-in parther before then?

good luck to evrybody that holds and is patient

Has this been de-listed previously or something?

GDP - change of name from Chaco Resources. New name, new mgt (over the last qtr) and now with a firm strategic policy of concentrating on near term production hence early drilling of Platinillo and attempting to bring fwd Fenix. Both regarded as excellent prospects but only drilling over the next two qtrs will prove that.

Are you in then?

Also, I am not a frequent investor in mining/oil&gas plays so would you say this is probably one of the higher risk bets amongst the small firms in the sector?

I've invested a small amount at 6.7 - lets see how it goes.

GDP - re #11 Yes, and have been for a long time - just didn't think the previous mgt would procrastinate as much as they did. Tomorrow or Wednesday should see RNS re notifiable interests following the Placing. Short term target (end August/early September? ) is an sp of 20-30p.

from 6/7p?????????????
you are a very very very brave man to predict that ...... or you are kidding yourself!

Why Cynic?,its gone from 6 to 17 in the past,all we need is some good news.

Wait and see; on Platinillo an improved % and a full to spill point drilling (not too much to hope for, given the history of the area) should be more than sufficient. If the upper sands are also oil bearing then that will be just icing on the cake.

and the reason it went from 17 to 6 is because of the lack of same!

The very same applies Cynic if we get good news it will go back up.

Cynic,

Being analytical and objective is being positive and intyeresting. Being contrarian for the sake of it is becoming just plain boring for everyone - including yourself I should think.

1 Million T trades showing as a buy,lets hope its a good sign.

For those who could not attend the AGM, it is worth having a look at the company's updated website www.amerisurresources.com
The chairman's report has the key facts, figures, maps, drilling schedule etc. Good for a quick reference for where we are headed.
I note we have drifted down a bit but there are still plenty of large buys coming through. I guess we may find out who took an interest in the placing the tomorrow, assuming they reached the appropriate percentage.

16 million @6.38L Trade,does this mwan we are due an rns?