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.

They are getting unpredictable with the days for sure..cept for Finals. Someone will know those figures by now, and I think I know someone who knows a man who knows a ....

If Rex wants more that is fine with me. He looks at 10x his input, and more, on past performance!

Educate me please - how do you know that the notified large, and increased, holding is "Rex" and who is he ?

As far as I know he lives in Monaco has a good investment track record. His stake would be very useful to a potential bidder when the time is right. More news to come on Amerisur very shortly in my view.

from a friend

'Our Rex is a busy guy, he took over at Maudore, is sniffing after Barkerville, and now he’s in Amerisur!'


Rex has a long and very successful track record..Look at Medusa Mining..bought at the bottom and sold, a proportion, right at very top..Not sure he is in the Oil takeover business but he may know a man who is.
Close family run business, based in Monaco, with something in Zurich, I believe
Considerably richer than what I am..Must have £75m tied up in Amerisur now.

Thanks SS and Up-etc. Rex holding makes my 25k shares look completely small fry. I have always had a strong feeling about this one since buying into Chaco some years ago. We await the 17th with confidence.

A couple of major funds await 17th, if not before for a P10 update, with even more confidence!
Rex buying in the mid-50's should indicate he knows something! He did go out to Colombia recently, with several brokers/fund managers, around the end of Feb/early March!

All looks good, remains to be seen how much is already priced in.
2517

The sp will move up when they resolve the export issue and daily production can be raised to c7,000/day +.

The surprise for me is that we are already 4 months into the year and as far as we are informed we have not yet drilled one well of the 10 planned for this year. Either the company is going to suddenly ratchet up activity quite considerably or that target will not be met. GC & JW need to answer a few questions on this front at the AGM.

Also GC needs to explain how safe it is to rely on Equador for help in solving how to get the oil to market. At the moment Equador receives its oil from Venezuela virtually free and the latter is no friend of Colombia. So unless Equador becomes less reliant on Venezuela progress may be slow. Hopefully the Equadorian free oil arrangement will need to be changed by the new Venezuelan government because they desperately need more oil revenue to prop up their economy. Making progress in South America is never that easy, if the currently advantageous arrangements enjoyed by Equador are ended then they could become much more willing to help Colombia (ie Amerisur).

Is the sp being managed to help get a better strike price for yet more director's options? Why else would so much other potential news not be announced just yet?

News seems good but again buyers are not flooding in - am I missing something - otherthan a boost to my investment !

Maybe the Market wonders why this was not released yesterday? So do I. I still think that everything the chairman does has his interests foremost, along with institutional investors running along too, and we as private PI's are just an 'Also Ran' - happy for him to discredit that belief by demonstrating it by how he runs the company. No quibbles with JW's performance.

That was just about my thinking too - but you always put it so much better. I suggest that if we were in his cricket team - we would be carrying the drinks !

If they are giving 3500 a day to Rio Loro, is that additional to the 5000 going to Ecopetrol?
Who are Rio Loro?
Still a couple of wells to go pre-AGM and they will have completed the 10-well initial Plat programme. Once complete they can un-choke the lot without danger of mishap due to pressure factor.
A new 10-well programme set for this year! Everyone a winner.
All hail JW!

I would like to think they can give a new estimate of the field size at the AGM. At the very least.
Interesting month ahead with more news between now and the AGM!

The Times gave this a comment today in the Market Summary - thought that they had given up following Amerisur. Today's RNS is very good news. Looks like plenty of potential for more announcements very soon.

It was an excellent rns yesterday. I would've bet on a 10% rise but it has fallen flat. Maybe people feeling short-changed by Wednesday's results which did not include this cracking bit of news? Who knows? Normal service will resume shortly, no doubt.

It is being held back somehow. Maybe short-termers who do not know the story. Lots of uncertainty in the market.
There is no other place I'd want to have my money presently.
They'll be back after the next RNS and the next, and then the one on AGM-day!

Way back I predicted that this company would become the Cairn Energy (CNE) of South America. I didn't think that it would take as long as it has to get this far, but then the fiasco of Primavera (400mb of salt water instead of the oil which was predicted was a slight setback!) but this now looks set to fulfill that prediction over the coming 18 months.

As and when the Board decides to update all shareholders fully and comprehensively on how they expect the company to perform I will update the header to this thread but, in the meantime, I have acquired more shares over the past few days. I would be buying even more but cannot for the foreseeable future hence stating what I have done in case anyone is feeling tempted to do the same at the current sp. Do your own research.