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.

High volume today, any suggestions?

Looks like most of the BUYS were rollovers,so same as IMO.

I am told that Mr W will be in town next week,so we can look forward to that as being something meaningful.

That seems to be confirmed from elsewhere so we should/could get more drilling news, Repsol stake share-out, Fenix drill programme and maybe farm in news on Paraguay.

SS, let's hope so.

There is no 'hope' about it, but if he arrives next week it will the late flight that gets in Friday night from Bogota knowing Amer. I'll be happily surprised should he decide to come earlier though. News is not dependent on him being here.

Why would we have a wider than normal pre open spread to facilitae a 500 thousand buy @6.38 @0750?

Well, whoever it was timed it perfectly.

This time an update does look imminent - about time too. Interesting that someone else always seems to know first!

I think the flight might have had a good tail wind!
I still feel whatever is going on will be ratified on first day of next month.
They may tell us ahead of time though.
Certainly someone has wind of something happening shortly!

500k buy at 0750 am confirmes auntie amerisur knows something!!

Its a little blue day here at amer.Good trades going through.

Indeed capetown. One hopes it will be justified with the right kind up of update shortly.

Another good day of trading.

Hopefully, a portent of great things to come.

Not so sure now that a one million sell at 7p has appeared.

Insignificant in the overall scheme of things.

Agreed,but it does wipe out all the buys for the day,hence no upside in sp.

capet-the 1m is a buy delayed from Wednesday.

I am informed very high probability of news this coming week.

One would be foolhardy indeed to ignore the strength of buying.

Yes. I agree with that. Bought a few more on Friday.
That flight got in earlier than some supposed.
Next week is going to be a busy one for our refreshed prodigal.