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.

Where did the 500,000 discrepancy in Fridays shares traded come from? Someone seems determined to push the sp up at the moment.

Presume it was a buy then!

The 50% price surge is very welcome but I'm not sure what's driving it. Any views on why and at what price consolidation/drop will take place?

Presumably you've seen the news items. Also a Share Centre tip.

But does the recent news support such a hike in the sp when they probably can't transport all of the oil they could produce? The potentials there but it's a bit difficult to believe it justifies such a rise. I'm not complaining, just contemplating selling and buying more back on the dip.

I've only just bought in so I'm new kid on the block. However it seems to me the potential is there. Your quote of 50% increase is highly selective and ultra low looking at the 5year chart. Most investors(me included) often sell winners too early and hold losers too long. bank some profits perhaps?

I was referring to 50% in the last month or so. I've been in since the Chaco days and started buying at <2p so I've got quite a few now. My question was driven by my interest in selling and buying back on a retrench. If I sell 200,000 near the peak and buy back after a drop of say 5-10% it's a nice little earner.

Up date on Equador due soon.
2517

Not sure we'll get much of an increase on Equador news bar an initial jump and fall back. Unless anyone knows differently, they will only announce plans or permission to construct the pipeline which will take ?? months.

Looks like someone's done what I would have liked to do, walk the price up to 65p ish, sold some and then walked it back down to buy back. Hope they do it again so that I can join in!

It might be a good idea if you do sell your 200,000 which may hopefully avoid further negative posts which do no good whatsoever.

Oak

I shouldn't worry. It's probably Proslenes spouting his usual drivel. According to him/her, always manages to buy low and sells high. The reality is quite likely something rather different and significantly less profitable.

What's negative?

Less than 20 working days to the next piece of game-changing news!

which is?

DYOR...look at oilvoice and recent RNS!

New development plan for Central zone to increase production? Has to be linked with pipeline news as cannot export otherwise. I haven't seen anything about permission to construct pipeline yet, have you? Or Fenix?

Could be a drop in the sp coming as the graph points to a possible pullback...might be wrong...might be right...

What seem to be large sells and the share price goes up??

I fear a drop here...as the news is in the price (sp)....I might be wrong...

That is what I call negative comment - I too could be wrong.