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.

fair enough his/her prediction was more accurate than the rest but they announced around a month ago that news would shortly be on the way and delivered, no real suprise there.
or are you john wardle in disguise sivad?

Some bigs ones going through! come on price >

Brief mention in Daily Express market report today: "Oil and gas explorer Amerisur flowed 0.13p north to 7p after announcing deals to take full control of the Fenix exploration block in Colombia."

I can see this sliding south before next update,and i will take the chance to buy more if possible.

Thought we might get a view from Sharesure at this point.

Blackdown. I've been away. Not really much to add at the moment. 14 days of testing and maybe securing Repsol's stake in Platinillo next few weeks + an update on Paraguay and more on Fenix. Not the time to sell in my view.

6.75 ? what is going on, I thought the news was scheduled and of a reasonably good nature???

I think they want your shares. Cheap at this price in my view - although still some risk.

would appear so bhunt, however I've waited two years now, so I'm not selling at a small loss just yet!

I think they could have been more emphatic with flow rates at Alea.
They need to indicate how much oil they expect to have in place.
I am confident further news will be forthcoming with the reassurances we are looking for. They have finished the drilling of Plat-2 and can now safely proceed with ascertaining full potential flow rates for Alea-1.
There is still so much peripheral stuff here with Repsol/Ecopetrol that we, and maybe the market, have yet to be given the full story. I know we have not had the full story yet.
This is a long term success but is affected by the short term avericiousness of the few.
It is getting back to that argument that the share needs bigger and more solid long term holders rather than an army of small pi's who run scared of their own shadow when the news does not match their outrgaeously positive near future expectations. Buy with a view to keeping them! Buy them now. They are cheap!
It takes a long while to get oil out of the ground but we are not far off here and Fenix will double up on anything Alea produces.
They are very tight with the news and that is the new focus. There is a long term plan in place, and it looks a very well ordered one from here.
Meanwhile, of course, have no doubt I'd prefer to be nearer 10p than here.
It is not just me that sees the current sp as a great buying opportunity.

Miniscule volume

Miniscule volume

Certainly many that think its not so cheap

Fair comment.

The sp won't do anything exciting until there is some clarity re asset value. Presumably the AMER board believe that Fenix is worth investing in - and presumably they also have the information to support this strategy.

Interesting read on AMER www.oilbarrel.com

Amerisur Resources Consolidates Its Position In Colombia As Platanillo-2 Prepares To Test
Signalling confidence in its two main projects, Amerisur Resources has consolidated its position in Colombia, securing 100 per cent control of the Fenix Block and removing a profit share agreement on the Platanillo Block. The AIM company last week acquired its partner in the Fenix Block, the aptly named Fenix Oil & Gas, for US$4.3 million in cash, giving it an 83.75 per cent working interest in the 24,117 hectare block in the Middle Magdalana Basin. It also agreed terms with the remaining partner in the block, Petex Offshore, to buy up its 16.25 per cent interest plus its 15 per cent royalty interest in the Platanillo Block in return for 18.25 million new ordinary shares. These agreements mean Amerisur has 100 per cent of Fenix and enjoys the full benefit of its 25 per cent working interest in the Platanillo Block.

The increased exposure comes as both projects reach an interesting stage. On the Fenix Block, Amerisur is interpreting the 3D seismic data acquired earlier this year and early results (the work is expected to be completed in Q1 2008) are encouraging. Analysis of a 16 sq km portion of the survey in the southern part of the block, which adjoins state oil company Ecopetrols Bonanza field, looks particularly promising.

This part of the Fenix Block has seen earlier drilling, including the La Tigra-10 well, drilled by Sinclair/BP in 1969, which produced 30.1-degree API oil at a depth of 4,750 feet. Amerisur believes the structure tested by that well may have a significant closure above this level as well as deeper potential in the undrilled Lisama sands. It reckons this 16 sq km area could hold more than 8 million barrels of oil.

For many investors, however, the near-term interest in the Amerisur portfolio lies in the Platanillo Block in the Putumayo Basin near the border with Ecuador. Here the company has secured maiden production with one well, Alea-1, on the Alea/Platanillo development currently on long term test while a second well, Platanillo-2, is within days of testing.

Platanillo-2 has been drilled directionally from the Alea-1 well site to a total depth of 8,578 ft. The Lower U sands were encountered approximately 20 ft higher than in Alea-1 and 75 ft higher than in the Platanillo-1 well. Although the condition of the wellbore prevented full access of electric logs, the company has seen enough to move into the testing phase: a workover rig is expected to start testing operations on two separate zones within the next week.

The work on Platanillo-2 has meant the intermittent shut-down of test production on Alea-1, which is choked back and producing around 70 barrels per day. When we last wrote about Amerisur in late October, the well was producing an encouraging 160 bpd of 32-degree API oil through a restricted choke. Investors will be keen to learn the results of the long term test to get a feel for the eventual potential of this field: when it was discovered in 1988, Alea-1 flowed at more than 500 bpd.

The accumulation is thought to hold P90 resources of 7.4 million barrels of crude in the Lower U sands with mean contingent and prospective resource of 20.6 million barrels plus additional upside of up to 32 million barrels in the higher risk and untested Upper U sands. The drilling of the Platanillo-2 marks the end of this first phase of development, although there is also the possibility of re-entering and sidetracking Platanillo-1, which was drilled 2,200 metres from Alea-1 but appears to have encountered the transition zone between the oil and water columns of the field. A sidetrack could evaluate reserves in an up-dip location.

Its a limited but interesting portfolio (although Amerisur also holds frontier exploration acreage in Paraguay), offering near-term production on the Platanillo Block and medium-term exploration excitement on the Fenix Block, where drilling is expected next year. Amerisur has put its money where its mouth is by increasing its exposure to both projects: investors will be hoping that the coming weeks of production testing at Alea/Platanillo encourage them to do likewise.

I am told the current price is being held down to allow another institution to enter the arena.

Expect further news prior to the City boys going on their well earned break.

I can only imagine the next piece of the jigsaw will result in price momentum.

Do I know you sivad? selim.

Sivad
I hope the next lot of news results in a more positive Sp.

Same here,however i dont believe the price is being held down for any reason other than its current worth,it will go up on good news and crash on bad,market usually knows best,if we were to have a good rns soon would they then hold the price down for a 3rd instituion that may wish to buy?,ihope not,and what about the current holders they would not be happy if the above were true.