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.)

b>



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.

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.

sivad, Uponthelowdown,i am bunkered in and awaiting news like the rest of us hopefulls,and as you say sivad, the buying of late has been interesting .

All sounds/looks good. A few months back, I came across a report by a Colombian govt department about expectations for various oil ventures. Platanillo was identified as a "high impact prospect". Obviously it all needs confirmation from the company, if that proves to be the case, and I hope any such RNS spells it out clearly!

This looks a certainty for news this coming week given the Amer folk who are over here. I would be very surprised if that news was anything other than positive - a broker hint last week pretty much spelled that out. So maybe at last - it's only taken 3 years and a lot of disappointments on the way! Originally dubbed the Cairn of South America - it may not end up being that good but still has the potential to go really well in spite of the large number of shares in issue. I wouldn't speculate as to how high this could go - in my opinion it still depends upon Paraguay.

is that cairn as in dog?

Then cast a cynical eye over this stolen post

westmoreland lad - 2 Mar'08 - 11:04 - 2165 of 2166 edit


pileiton -- imo, if we get all of the 6 points in Stuarts summary (1709) we
will more than double from Fridays close.
In any case, lets remind ourselves of those points that we are waiting for.
Hope you don't mind Stuart ? Good luck

stuart3254 - 15 Feb'08 - 15:18 - 1709 of 2164


Afternoon all,

Despite saying I would not post again I felt compelled to put out a summary of where we are and what news we are awaiting, it's been a difficult time for many here and in March I will have held Chaco / Amerisur for 3 years, I could have sold out at 18p, 16p and for an hour 19p but got greedy for the big one, anyway still holding approaching 1M all paid for and seriously thinking of topping up with one last purchase.

I am not having a go at management or the board this is simply a reminder of events which we are awaiting and which I expect will be made public by an RNS VERY SOON.

1. Alea - This has been on long term production test sice late October 2007, I know a long time however let's not forget this well is producing, my thoughts were that the original flow back in 1988 which was 533 bopd would be exceeded and with the aid of pumping equipment we should be over 1000 bopd.

2. Platanillo 1 was successful at defining the structure between the oil and water and could be sidetracked at a later date, up dip I believe.

3. Platanillo 2 has had good shows of oil and is currently on long term production test, was it 450 bopd at the B Limestone and 430 at the T sandstone, anyway a good start, presumably a pump may increase this but not sure about the technical issues, I assume the different choke sizes will increase flow.

Overall I think Alea and Platanillo will be huge and it's a shame we did not go there first 2 years ago, anyway that's history, we are there now and I believe a meeting was to take place in January perhaps it slipped to this month to determine the future drilling at Platanillo, we could have 6 or 7 drills here in a short period of time, the more I think about it this part of the business will give us a great foundation for the future and of course the market cap will increase accordingly, we are trading at a share price which is way below what it should be.

4. The increased share of Repsol I assume has been the subject of the outcome of results from the above, I hope we get an extra 15% ish that will do nicely and give us 40%, I assume it will be paid in the main by a royalty but perhaps some sort of initial payment as well, one thing is certain Amerisur will only pay if they know it's worth it and remember John Wardle got paid in shares for Petex so he must think we are worth it.

5. Fenix - I know little about this but if peoples estimates are any where accurate then this will be the project to make us one of the biggest oil producers in the AIM, not my words, was it in a statement from WDBM, perhaps some one could confirm.

6. Paraguay - I think something big is going to happen here, hopefully a farm out or a JV, either way we have apparantly some superb areas, looks very good.

Anyway, Cairns are very energetic and pleasant dogs!

5. Fenix - I know little about this but if peoples estimates are any where accurate then this will be the project to make us one of the biggest oil producers in the AIM, not my words, was it in a statement from WDBM, perhaps some one could confirm.

In response to point 5:

Amerisur Resources Plc: (6.75p) Shares in issue: 827.9m
AMER.L www.chacoplc.com Market cap: 55.88m
The change in management and associated 15 million fundraising was the crucial event for the company in 2007 and the purchase of the balance of the Fenix block to give Amerisur 100% interest was the catalyst that will give the company the opportunity to become a mid-tier oil producer. Results from the 3D seismic on this block look very encouraging. We foresee that the company will speedily progress from being a well-capitalized junior with small production to becoming one of the largest AIM-listed oil producers. In our opinion the market has not recognized the transformation that is well under way.

robbi123,

Thanks for your comment, I knew I had seen it somewhere, was it WDBM ? I think that was issued beginning of 2008

yes stew, it certainly was. I still think people are overlooking Paraguay. There is currently nothing in the share price that represents the potential that Paraguay has as one of the most underexplored areas in the world.

Everyone starting to get excited again but at least cynic has a balanced and sensible point of view when regarding this share, until oil of even reasonable quantities is found there will be no breakout of the 6-8p pricerange. Paraguay means jack shit until anything that looks like oil is discovered so why people are getting excited at the present time is beyond me.Have been dissapointed on three occasions now and will not invest again until something positive actually happens with this share .Good luck to all investors hope you make money ?

From the other side

uk.reuters.com

** South America-focused oil & gas explorer Amerisur Resources (AMER.L: Quote, Profile, Research) is in talks to buy out its partners in the Platanillo block in Colombia, a source familiar with the situation said. [nWLB8180]

From today's Daily Express: "South America-focused oil and gas explorer Amerisur was steady at 7p amid speculation positive announcements were in the pipeline."

If AMER is in talks to buy out its Platanillo partners, chances are that another placing is on the cards.

Presumably why some of the top brass have been in town recently.

Extract from Reuters

Further news * Tui travels downwards in nervous market (p55) * Busy day for Clapham House (p55) * Daniel Stewart sets 90p price target for Nighthawk, saying the oil explorer is undervalued (p55) * Talk that Amerisur Resources is to announce a big oil discovery (p55)

here's hoping......fingers crossed yet again.

How big is BIG,

lets have some news,heres hoping and fingers crossed.

I meant to mention,what concerns me about this news speculation is that the SP does not reflect the rumour in anyway whatsoever,in fact its down.

Capetown, you are right to be concerned - the market is seldom wrong. I get un-nerved when two particular brokers keep dripping out 'good news this week or next week' to a couple of regular posters on the Advfn BB knowing that they will post to keep the pot simmering. Considering that John Wardle has been in the UK this week and that they are considerably overdue with some of their updates (their timetable, not one invented for them by shareholders) they should be in a position to state what progress they have made. For all everyone seems to crow about Amer's chairman he is behaving as though he is running a corner shop - not a listed company.