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 have no doubt that GC wants to get to double figures (we all do!) but he shouldn't be that surprised about the last rns. There wasn't enough new info presented. I expect the facts and figures that are required will come but in the meantime the sp isn't going to do much. It's frustrating because AMER is in such a better position now compared to 7 months ago but the company's value has remained the same.

BWD,dont you mean the value has halved?

No capetown. I meant the value of the company is same (roughly) since the 6p share placing of May 24, around the time that AMER was born out of CHP. But I appreciate your point re the sp since earlier in the year.

BWD,
We live in hope!,
ll the best for 2008,et all.

We have had numerous visits from "Wise Men" since the birth in May. What we need now is "Three Kings" all carrying gold ! - Merry christmas

Looks like the markets were hoping for an update before end of year,hence the further fall in SP.

oak,

Gold?

Actually rumour has it that may turn out to be prophetic, in Columbia, but sadly not for AMER!

All may be revealed on Monday.

Andy,that would certainley explain the state of the SP,if what you say is true.

capetown,

I was referring to a rumour that there has been a large gold find in Columbia, as oak mentioned gold in his post.

I know a few people that are confident here, so i hope both companies find what they are looking for!

GLTA

Andy,
Thx for clearing that up,will sleep better tonight!!!

have a good one!

if gold found in Columbia it is scarcely surprising that AMER is not a beneficiary!

merry christmas to you CYNIC!,
have a good one.

capetown,

Thanks, you too!

For Better or Worse I added to my shareholding on Friday.

The market is already questioning whether the new management really will succeed in its expectation of creating shareholder value. Notwithstanding managements' significant Shareholding/Option interest in so doing, it is still a perfectly fair question, even at this early stage. The market has clearly been frustrated by "timing" delays in updating shareholders on progress; currently Platanillo. However these delays can often be beyond management control when dealing with and dependent upon the actions of 3rd parties!

My hunch is that this management will succeed in extracting oil flows which will turn AMER into an exciting investment over the next couple of years. I have backed this hunch by averaging down!

Good luck to us all and here's to a prosperous 2008.

you mean by trying to catch the falling knife

Spark,have also done the same here as i did with goo,all looking good for now.

Buyers coming back,rns tommorrow would be good!!

Also backing IPL might give a double?

Good luck sharesure with IPL,Double would be most rewarding after all the ups and downs!

News should be with us next week.