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.

Up on sells.STRANGE

Cynic - forgive me for correcting your execrable French. The correct expression is
"plus ca change, plus c'est la meme chose"

thank you .... i knew i hadn't got it quite right, but was damned if i could remember what it should be ...... bloody foreigners should speak English!

With the alarming drops, now on a daily basis, would it not be the correct thing to do for the company to issue an update on how operations are going, if only to allay a few fears that investors must be feeling, or at least try and stop the continual drop in sp by the market ? There really doesn't seem to be any more confidance in this new management, than there was in the old one.

Here's hoping to be proved wrong

tudwick

This is less than a week old!

From a broker's note to clients:

Amerisur Resources Plc (formerly Chaco Resources Plc): (5.63p) Shares in issue: 807.43m
AMER.L www.chacoplc.com Market cap: 45.46m
We spoke briefly with Giles Clarke, Executive Chairman, and were reassured that the new management team is making solid progress. Indeed, due to the weakness of the US currency it would appear that costs will be under budget and the timetable for drilling at Platanillo will be slightly advanced. Clearly the company has both the management and the funding, and is operating in a favourable fiscal environment with a background of increasing demand for both oil and gas.

and that says bugger all! ...... mere panacea with no substance

So, why the daily drops, every single day without fail ? It would appear the market obviously didn't take in the good points raised from the broker note then as much as say, you did...why not ?

because second liners and lower tat are currently unloved by the market ..... certainly no resson to buy; therefore sell

Cynic, I already know you really don't like this share and never have done, but i was just interested in Moneylenders reply

i liked it enough to lose money on it at least once!
i love my dog too, but when the time comes it will have to be put down ..... similarly dogs like this!

Fretting about the sp during August and when turnover is so low is a mug's game. AMER will come alight when it announces what all of those of us who follow it closely know and oil production at whatever rate becomes a reality; drilling Platinillo - step out well and the original plugged hole and announcing that an increase in the % of the field has been concluded should propel this to well over 20p on the current 25% and more if we get a bigger sized field and a bigger %. The latter is probably held up because Ecopetrel also made a pitch for some of Repsol's stake and they do not move quickly as we all know to our cost.
It will be interesting to see if any spud dates are announced (as req'd by the rules?) or is/have been 'overlooked' as they were when PV was drilled.

I wasn't having a moan Sharesure, just highlighting (if it were needed) that the sp has gone from 16p down to 5p on no news. My point is, that were the sp to rise on news, it may only recover to what it was originally, trebling the current price, which is great news if you bought @ the 5p range, but no so if you bought originally ?

Cynic, i love your sarcasm

plenty more where that came from ..... i have a long life's fund of it ... lol!

Tudwick, My comment re 20p+ on the current % and current estimated field size came from someone who knows this company inside out. Hopefully AMER will prove a bigger find with the step out well (hence plans to drill it first) and have a larger share of it.
As for Cynic, there is no point in taking issue with him/her? as the company's policy of saying nothing only helps foster negative views at this time. If you own your shares and can bear riding out this tedious time until drilling results are in then it is still a stock that in my opinion will rise significantly when there is some production of oil. AMER might even then get some credit for the potential in its other acreages.

Let's hope you're right, would be very pleasant, considering my breakeven is 11p.

when i last looked down my trousers, i was happy to report that i was still homo intacto!

This is starting to look interesting at this price, thinking of coming back in.

Despite the usual - and boringly repetitive - comments from Cynic, my money is with Sharesure's point of view. The sp is drifting on tiny volumes and nothing of any significance is going to happen until some news is issued by the company.

Sharesures comments usually pretty accurate - just his timing can be out a tad sometimes - hope not on this occasion