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.

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 ?

Now England has secured a brilliant series win in India, my guess is that we shall start to see more Amerisur news about current production, Platinillo drilling, and possibly Fenix and Paraguay updates. My expectation is that Amerisur will end 2012 on a high note (unless the US fiscal cliff shatters the market in the meantime).

I like surprises ... but volumes low and not many proper trading days left until the eoy. When will we get a target figure from Investec I wonder?

Looks to me like the MMs are dropping SP to encourage sells from the nervy with the intention of them being swept up at the end of play - which has been a trend in recent weeks. So far to-day, however, it is only minnows selling. Hold tight

AMER en passant
http://www.proactiveinvestors.co.uk/columns/fox-davies-capital/11564/leyshon-resources-petroneft-resources-range-resources-amerisur-resources-and-others-feature-in-fox-davies-newsflash-11564.html

General Comment: GeoPark’s news underlines the fact that Colombia is once again in favour as an oil and gas province. The fact that investors can now clearly observe the difference between countries that pursue free market policies and those that don’t, and who will in effect struggle to attract foreign direct investment. We believe that this news is good for the wider Colombian Oil & Gas sector and is a timely remainder for the investors on the potential of companies like Global Energy Development (LON:GED), Range Resources (LON:RRL) and Amerisur (LON:AMER).

This is becoming a pattern with Amerisur. A 'shake out of the weak/T.traders and hoover up the spare stock' job just prior to news. We also may be overdue a % stake change RNS. This stock looks set fair for at least a double this year on production figures alone, a more substantial rise if other parts of the strategy are achieved.

Couldn't agree more S. Next news will see us set fair for happier times, not that I am unhappy with progress to date. It will go on and on although 'nothing ever goes in a straight line'.

Bought into one of GC's other companies very recently and already showing a 50+% profit. Very early days but who knows what may happen - maybe another AMER eventually? Looking forward to the rest of 2013 with Amer - anything is possible here now!!! GLA!!!

Sharesure, what, in your valued opinion, is a good exit price for this share??

tobyson, tough question to answer. Just on Colombian assets alone I would be disappointed if it doesn't get to be a £2b company ie about £2/share; just a personal view and not at this stage able to be backed up on what we have been told. Paraguay is the complete unknown since so little has been done there by way of exploration by anyone. Sometime during this year either Amerisur or another explorer should be sticking a drill bit down into the ground. Amerisur has some of the best potential hydrocarbon acreage courtesy of the previous board's historic knowledge of it. One of the former directors once told me that he viewed it in much the same way as he had decades ago when he stood on the Norfolk coast looking out over the North Sea and remarking to an unbelieving colleague that he reckoned there was a lot of oil out there. He was certainly right that time!

Perhaps they could update the company website, which is way out of date re Fenix and Plat.

PPC, President Oil, should be drilling in Paraguay soon. Allegedly they have hit oil on the Argentinian side of Chaco border.

Expecting a general update soon. Lots of hints about something big around end Feb/early March. What? Opening up all the wells on full throttle in Plat for one. I think 20k a day possible. Delivery question needs to be attended, but I suspect John Wardle is ahead of the game here.

Patience is required. Yes £2.00 is a strong poss.
If what I suspect may happen by Easter we could see more than that!
I am told a new party, or parties, are taking a strong interest in Amer. I suspect it may be US co(s). This would account for the positive movement recently ahead of news.
I am happy holding, and will continue to accumulate when I can. A great year ahead..and for years ahead!
'There is no other share, presently, that we know of, with the potential of Amerisur'
Quote from someone with a bit of clout!

Blackdown: yes they should. Obviously not a priority but it is something which ought to be attended to.

Re 20k/day: it is doable. I suggested it once a couple of years ago and even then the figure was not disputed. I think it was also discussed at last year's AGM. But they can only produce what they can deliver and hopefully the bottleneck will be sorted in the next couple of months.

Thank you sharesure, have held for a few years now, halved my holding at a profit last year ( not as big as it could have been) , so will continue. 2 pound would just about sort the pension!!

Thanks, once again.

Went to an interesting investment pitch yesterday given by John Hamilton, Director, of President Petroleum plc. They have a block adjacent to Amerisur in Paraguay. They are forging ahead with their seismic and hope to have results of that by 3rd quarter 2013. They sound very confident about their prospects of continuing the discovery of more oil in the structure just over the border in Argentina. There each well drilled is producing around 6,000 barrels/day. Whether our acreage is comparable or better than President Petroleum's area is open for discussion. I know what I was told some way back by one of the previous Amerisur directors - his comment was that Amerisur had over 80% of Paraguay's best hydrocarbon areas within its licence allocations. Which of the two companies drills first is not known yet but, whichever does, if President's assumptions are proved right we are in for a huge advance.

Let us hope that they get on and drill the first well before too long and there is a positive result from it that enables them to do a decent deal with a bigger player. They are still a small outfit and need to use their resources effectively.

Sounds very promising, short term production constraints a slight inconvenience, but nothing more.
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