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.

Mr Luson seems an interesting apointment !!

Hopefully an indication that some corporate activity is in the offing. Perhaps a JV re Fenix?

Exactly - perhaps SS, or another, will ask the question to-day. Must be a good reason for announcing prior to the AGM !

AGM update
Really good presentation – and others have already commented on some of the main points.
There was a live feed showing 4 of the platforms – Plat9, Plat 5, Plat 8 and Plat1 ( I think) – and no they would not let us have access to the feeds. It was a shame it was still dark as you could not see much activity – but good to see they have the technology in place to monitor the situation.

One of my criticisms from last year was addressed about the structure of the company being so dependent on John and being a 1 man and a dog team – well they put up a structure chart showing a well-defined company structure with 43 direct employees and over 200 contractors working now. I am sure most of this was in place before – but still good to see. They also brought over “Charlie” this time – who is Johns right hand (and a lot younger, Colombian) man. It is still very evident that John is still the main man and nothing moves without his say so – but good to see some technical back up in place and the appointment of Nigel Luscan with his contacts and knowledge of Colombian Chamber of Commerce will I think take some of the pressure off John in his day to day dealings with the commercial side and allow John to concentrate on the geological and oil side

The entire presentation was geared around how much oil they have got and the fact that 2P reserves has quadrupled to 30mmbo – so far – but that current indications on all fields was showing significant more 2P reserves. I wont go into the detail – cos I cant remember it – and hopefully the slides will provide better detail – but this success story just keeps getting better. John is renown for under promising and over delivering – and you just keep on getting the impression that there is a lot more that they are not telling us.
Distributing the oil is probably the biggest single problem that they have which is constraining production – and one very eloquent question about how the problem was going to be resolved - was ducked – also very eloquently by John. John waffled on about the various issues – but it seemed clear that there was no simple solution and that the various routes to market all had issues. At the moment oil is transported either to Orito (ECP) – 94km or to Reoloro (?)(EEZ) – 308km, or to Dina (ECP) 428km or to Vasconia – ECP – 750km. one of these – I cant remember which one had a serious backlog where the tanker lorries were parked up for miles (like the M20 when there is a problem at the ports) waiting to unload their cargo of oil.
The nearest pipeline is a few hundred meters away n- but it across the river in another country – and they are currently working towards getting all the permits and agreements in place to allow them to ship the oil across the river from a terminal 20km away and across the river. I think John said that Phase 0 is to tank it to the port 20km away and across. Phase 1 was to ship it across in barges and phase 3 was to run a pipeline under the river and directly connect to the pipeline on the other side of the river.
John said that the distribution issue did not keep him awake at night and that although it was a delay he thought it would resolve itself over the next 2 – 3 months – my own impression was that the constraint would remain much longer – BWTFDIK
John talked about the association with PLUSPETROL for the PUT12 project. PP are a well know Argentinian company currently pumping over 500,000 bopd and they normally only operate where they have 100% control. In this case they are in partnership with AMER and both parties are “excited” about future prospects.

Put12 seems to be exciting everyone about the potential amount of oil that could be exploited.

Giles was his usual arrogant, high handed and rude self, limiting questions to about 15 minutes and cutting the meeting short.

People had travelled from Yorkshire, Sussex, Suffolk, Lancashire, Euroope and Russia to be at todays meeting. It is the only opportunity that they get to talk to the directors of the company that they have invested in and it is out of order IMV for Giles to limit the amount of air time available for questions to an unreasonable level.
His excuse is always that he is busy and needs to get on – but it is about time he learnt to schedule his time better and schedule in more time for his investors to ask questions – all in my view of course.

John was off to London to brief inter alia Bob Catto – who was not in attendance.

My usual caveats – I am not a technical person and I am sure I will have misinterpreted some things (which might have been cleared up in the Q&A session). I am sure that others who were there will put me right where I have misinformed.

Good to see so many of you, to make new acquaintances and to renew others and hope we will continue to grow and get a fuller Q&A session next year.

My thanks to Nick for arranging hot coffee and pastries this year and to Charlie for the provision of AMER umbrellas and data sticks – most welcome (especially the umbrellas in Wales).

All for now – there are some good slides worth looking at when the presentation is made public

BH - Many thanks for the above report - much appreciated.
http://www.amerisurresources.com/Amerisur_AGM_Presentation_14-05-2013.pdf

Agree with Barry's 'take' on the Presentation - he took many more notes than I did! John Wardle was his usual confident and impressive self and, as usual, you get the impression that he knows and expects much more to happen in terms of proven reserves and daily production than he can let on.
The Chairman was unfortunately, and as usual, his usual self. Looked liked he had spent the night asleep in a hedge, which doesn't really matter since the impression is that it is the work that the rest of the Board do that matters more to us as shareholders. Maybe I am biased but I am not alone in my views. It wasn't worth asking him any meaningful questions such as is there any truth in the comment that the Paraguayan assets may be hived off into a separate entity. He couldn't and wouldn't answer that.
In conclusion, it all looks like steady sp growth can be expected from now on, barring external issues playing a part (both positively or negatively) - maybe that's preferable, rather than having volatility which just attracts short term trading of the stock.
AGM's seldom live up to the expectation of there being any revelatory news and this was no exception. Just reassuring that quarter by quarter significant progress looks likely to be made and reported.

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a lot of small buys coming in

They look meaningless to me. This company must be doing things which should be RNS'd - particularly if they are drilling the number of wells that they stated they would.

From rns 14/05/13
Total field production capacity estimated at 7,500 bopd before the contribution of Platanillo-11 and Alea-1R ST1.

The well Platanillo-11, located on Platform 5 South (5S) has been drilled to a total depth of 8,733ft MD using the Latco-01 drilling rig. Platanillo-11 is a directional well, deviated approximately 1,697 ft south east of platform 5S. The well encountered an interval of 95 ft Gross, 49.5 ft net indicated pay in the U sand and 34 ft gross, 17 ft net in the T sand. As predicted by our geophysical model, the N sand was not well developed at this point. It is expected the well will be completed and placed on production during May.

Is there a delay with production on well Platanillo-11? It may account for the recent weakness in the sp.
2517

ss
are you still positive about the long term?

Very positive. Short term weakness seems odd but I have just acquired some more shares over the last few days to take advantage of that.

thanks sharesure

Nudge, nudge. Wink, wink!

Not impressed with the share price rise. Is it ever going to go up!!!!!

SP looks nicely and suitably progressive to me and usually picks up at the end of the day when "someone" wipes up the daily sells after a goodish RNS

The underlying fundamentals look to be building up well; the sp will catch up at some stage and likely as not will then overshoot, leaving smaller holders able to sell out if they wish to. I will stick with it until there is a stake build up in preparation for a bid.

Over 7k bopd now (constrained), have an idea this is going to grow into a decent size co. in time.
2517

Looks like someone wants out with the large sells today

Sorting stuff from the 52m trades a couple of weeks back imo. See what tomorrow brings?
$300m pa revenue now and people say there are sellers. I don't think so but I do think there is some funny business going on!

Wait for the RNS to say who owns what and who sold off a few!