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.

A 7', 5' and 2' interval - I've never seen anything so small. Also the "lower U sandstone" seems to be at a lesser depth (i.e. higher)??

Total flow rate of 1,041 bpd, but a very mixed API rating and loads of water in the T sandstone - funny old mixed quality of result in my inexpert view.

"There is still a great deal to understand
about the Platanillo/Alea structure, and the evaluation programme will be
designed to help us towards that understanding.

'The structure is far more complex than previously anticipated."

Looks like it's going to be difficult to evaluate and for "complex" read "difficult to extract"??

Not sure it is half as exciting in terms of revenue-generating production potential as we'd like it to be. Hence the muted SP response - now slipped back 0.5p

STOCKDOG

"there is still a great deal to understand"
maybee the man from SHELL or BP can go in with his or her checkbook and take it off their hands as they may well understand better?

Wouldn't mind if they did.

Now is not the time to sell the company. Maybe mid 2009.

AMER is an Interesting thread. Now that things are starting to get interesting, it dries up!

everyone waiting with baited breath!!

The "falling knife" has disappeared into oil and the fun has just begun ........!

into hot boiling chip oil? .... i jest; AMER is no more flakey than GOO

Whats the take on all these trades @mid price,showing as unknown?
Seems to be a regular occurance on this stock.

They are buys. At least that is the price being quoted on TDW at the mo.

Bigwavedave,i did a dummy buy on td and was able to buy at mid too,so there are still buyers of big blocks of shares in amer.

capetown - to further my education. How do you make a dummy buy and what is td ?

Td waterhouse ,is who i trade through,before you BUY a stock you usually are given a firm buy price between the spreads before you BUY ,in the case of AMER the offer price was 7.75.Hope this helps.

Thanks - great help to this "dummy"

Good volume and some large buys.

news tommorrow?

Volume might suggest that?

No - dont suppose we will get anything positive now until middle of Feb. I like to take a conservative view and be pleasantly surprised when we get news earlier

slow and steady

I agree. In any event, the new management team seem to have their communication strategy well worked out.