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.

How comes when the market crashes, AMER sp goes down, but when the market recovers somewhat, AMER goes down again.....why ?????
Answers on a postcard please.......

on a postage stamp .... because it's rubbish!

Because yesterdays trades were all sells ,and the same applies so far today,as for them being rubbish,you said the same about GOO Cynic.

i agree .... and if you look back further, you will see a note from me discussing which would prove to be the greater load of rubbish over the next 12 months ..... so far, AMER is several lengths ahead!

Agreed,but only so far!

Late action here.
2517

nice - I wonder if there has been a leak - or whether it is just an opportunist buy at these low levels - and especially with news due soon - some say by end of month - but I prefer to think by end of February - so that if it does come sooner - I can be pleasantly surprised

Welcome tick up in SP,

Sharesure - we don't seem to hear much from you these days on this thread. Have you baled out, perhaps in favour of IPL?

Blackdown, No I am still in AMER and still optimistic but less so in terms of eventual sp given the dilution. Also everything seems to take them forever to do - they have still to finalise things I was led to believe were a fait accompli 2 years ago!!!
Maybe both IPL and AMER will perform before the month end?

S/s - fair comment. However, GC is his own man and my guess is that whatever he is negotiating with Repsol et al will end up being good news for shareholders.

Re timing, Sivad seems to be the fountain of all knowledge in this respect. He has been quiet for a while, so I guess we will just have to be patient.

D Express today.

"South America-focused oil and gas explorer Amerisur Resources was steady at 7p amid talk of a deal with Spanish giant Repsol."

BWD,did you spot the 1.5 million buy @7p fri 1613?

Yes, I remember a 1.5m buy. I see MAM has it listed as 16.06. Is that the one you mean? I believe there was also a 500k and another 1m (probably buys). Had hoped we would see similar this week.

correct on both counts and they were both BUYS

Today is a different story so far.

That 1 mill buy apperas to be an option by a former director@2.16p?

CORRECT

MORE DILUTION !!!!!