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.

I think as sivad says we shall see matters cleared up sooner rather than later.
If they decide to update us between Xmas and New Year with the interims, I would be wary. Therefore I expect the update relatively shortly but exactly when is in question. I think they need a few days yet to correlate all the info on Alea/Platanillo/Fenix/Paranha and the rest.
Be patient. It will come and it will be good.

If an institution does want to get in at low prices then I wish they'd get an effing move on. AMER has been at this price since the placing in May. How long does it take?

I was happy to see progress being made in the last rns, but had hoped for more info on Alea. I am sure they word these announcements carefully but AMER often end up raising more questions than answers. Ambiguity is not helpful.

If they want to run the next one by me before publishing, I will be happy to take a look and advise.

Capetown, As Stewart has said - I mean the Board and their advisors. An update next week could be likely but I agree that any RNS during the week leading up to Xmas or between Xmas and the New Year would be suspect.

capetown,

I gather someone suggested that the reason for the price being held up is to allow an institution to get in, I really do not know enough about these matters to comment, it's possiable I suppose but the price has been around this level and lower over the last few months so they could have jumped on board then.

If an institution is getting in and it's being held back then they must be buying a very large amount and they must have some muscle, as I said earlier OIL is the only word which will push this forward and they must include flow rates and reserves.

UOTL-no

What: news won't come shortly; or it won't be good; or both?

OK Selim. I agree with your holiday surmise.
It is looking like a bounteous Xmas.

For what it is worth a city broker note received yesterday was very bullish on Amerisur - may be 'talking their book' but would look stupid if they are misleading everyone. No prizes for which broker it was. It suggests to me that w/c 10/12 should see the information everyone wants to see re flow rates on Platinillo, Repsol share (has Amerisur finally documented that they have got it all - or most of it?) and maybe some 3D confirmation on Fenix' potential at much more than 8 m barrels? (They always reckoned it was a company maker and 8m barrels would not do that even with 50% of the shares in existence)

looks like the sp has recieved a wake up call?

s/s
What SP do you think we could be looing at if all goes well next week?

s/s
What SP do you think we could be looking at if all goes well next week?

Bodeng, Really do not know - the market isn't really giving full credit for what companies find until the oil actually flows out of the ground. One estimate would be 10p per share for every 1,000 barrels of oil pumped per day. It would be nice to think that if oil in the ground was credited to its full value at the current price it might be worth 0.7p per million barrels. However I doubt that that would be credited over night - it might take an opportunistic bid from someone to give that sort of value and at the moment, that doesn't look to be on the cards. Let's hope it changes!

All good stuff on the way!

http://money.aol.com/news/articles/_a/correction-pantera-petroleum-enters-into/n20071204130309990051

Curupayty Sub-Basin is projected to contain 1.5 billion barrels oil (if oil is generated) or 9.1 TCFE gas in 36 fields.

Map showing Licence:

http://i11.tinypic.com/6ob3o87.jpg[/IMG]

Monday should be fun!

M

projected, predicted, forecast, may do ..... rain and wind tomorrow is 10x more certain!!!

Price being kept down to allow an institutuion to buy in? ROFLMAO
The SP is depressed because there is no reason for it to do otherwise

pth: I see you've sobered up - sounds a raucous do last night.

PTH,
Glad you said that,my previous post also suggested doubts with regard to that theory,OIL and only OIL will wake this up.

Hoping for positive news this week.

Same here,or its chips for XMAS!!

Today's RNS - yet another underwhelming update. Blue Oar now suggesting that we have to wait until January (presume 2008 - but who knows with this lot!) before news of anything good enough to advance the sp. Take a look at IPL in the meantime - it might pay off.