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.

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.

I was on the verge of selling at a loss untill i saw that bit of news,and may well do so as its getting real boring.

http://www.expansion.com/edicion/exp/opinion/es/desarrollo/1097397.html

From a Madrid paper today.
"Repsol is negotiating the sale of 35% of Platanillo petrol block to fellow participant Amerisur" My attempt at translation.
I don't think a UK source would particularly influence what emerges in Spanish newpapers. This lends credence to the story that JW has returned to Colombia to seal the deal.


Repsol
Uno de los ejes centrales del nuevo plan estratico 2008-2012 de Repsol es reducir su exposici en el mercado latinoamericano y la petrolera podr dar un nuevo paso en esa direcci. Repsol estnegociando la venta de su participaci (un 35%) en el bloque petrolero de Platanillo, en Colombia, a Amerisur Resources.

Sharesure - have you expressed your feelings to the broker/board? I couldnt agree more to be honest. They have missed their timetables by a long long way!

I, certainly, have made my feelings known to brokers and GC.

Robbi, I haven't spoken to them recently and one of the main ones is away anyway. After a time it's easy to get fed up with bothering to listen to them and I doubt I would believe anything they said anyway. That''s not to say that I am thinking of selling since I think the original reason for buying into this stock still holds good ( even more so than it did then because at least they now have some production) and it is only a matter of delivery and timescales I would have issues with.

Sharesure,
Remember how this used to go up just on rumour of new acerage and licenses,
Now there is a supposedly roumer that they are about to announce a major oil find,and the SP is finding it difficult to keep its 7p level,I have noticed over recent weeks the very large trades at mid price so one is not able to see if people are buying or selling!.

cape - we are in a very different market now though, where rumours dont really count for anything. This stock is very much news driven, the market has not reacted great to the past news, it is about time that it takes notice of whatever they announce next.

They are awaiting a 'Production licence' from ANH. You don't need one if you have no oil to pump!

What's all the fuss about. Waiting a few weeks for news isn't such a big deal.

UPONTHEDOWN,guess you need one if you think you might have oil too?,i was referring to the news about rumour og big oil discovery by the way,not the news we already have.

They appealed to the oil minister at the Cartagena conference. He is understood to be moving it along. Bureaucracy in Colombia takes forever; we know that of old.
I am fed up with the delay but they will tell us as soon as they know.
100% we get something before end of Q1.

UOTD,well at least we have had a little discussion on here which makes a change,lets hope we can celebrate soon.

I think we have had the "News" it just wasnt RNS'd, they just
leaked it out to several news agencies!

I must admit, why do two large multi nationals that have
had an interest in Alea for 30 yrs or more now all of a sudden want to dispose of it, when Oil is $105 a barrel. OK I understand Repsol, they want out of large parts of S. America, but why Ecopetrol??? If the upper sands are productive then surely Alea must have 100mbo, or does it??? Certainly the thought of another placing for us, we will need all of it to got alone.
Is it the terrorist thing, that has come to a head, I doubt it, but there
must be a reason, WHAT is it???

Questions questions questions, NO answers!!!

M