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.

Tudwick

Nothing is written in stone in S. America.
Make of the following what you wish.

Alea: results in due course.

Felix: " Amerisur, which focuses on South America, said the next period would be a
busy one. It said the interpretation of the 3D seismic on its Fenix block in
Colombia is encouraging and is expected to be completed during the first quarter
of 2008."

Paraguay: Sometime in the future!!!

M

Fair enough, point taken. Welcome to business in S.America, i guess

I suggest that it is a reasonable assumption is that no news is good news. Dusters don't need any government consents, or any deals with partners. Positive drilling or seismic results, however, will inevitably mean that time is required before things can be taken to next stage i.e. production and/or further drilling.

Come on you AMER fans, don't give up hope. Prosperity - your's and the company's - is just around the corner!

blackdown. Good point. I'm still here!

me too

Same here,still holding and waiting,but are you not alarmed at the unabated selling,small amounts but none the less sells far outwiegh the amount of buys over last several trading days.

A little surprised. But not alarmed.

Selling by short term investors. This is one for the medium/long term.

None the less the selling continues,if i were to sell now,i will have held for nearly three years,my guess is holders are getting nervous and selling now,all sells again yesterday will the only buys being rollovers,

I will continue to hold,but we need NEWS,where are all the buyers for a company that has such potential?,thats my worry.
Good luck to all.

Capetown, I wouldn't sell this week. Draw your own conclusions.

Sharesure,conclusions drawn.CHEEEEEEEEEEEEEEEERS!

Sharesure
News this week would be welcome.

Only if it's good.
2517

2517,i agree,but would you not think that at 5.75 no good news is priced in at these prices?

ct------I agree, but we do need good news, if the news when it arrives is bad then 5.75p may well look generous. I thought it strange that the mid price is 5.88p and so many deals over recent days have been @5.85p and registered a sell, so I have just tried a dummy buy and was quoted 5.85p. All is not what it seems. Good luck all other patient holders.
2517

It would be good if someone who HAS bought at under mid could post on here just to confirm that,it would also dispell all the what look like constant sells over the last couple of weeks.

ct---I wondered why the mm's were paying for so much stock at a price very close to the mid price when they could have paid less. That's why I checked, I would be more than happy to do a deal, but have enough already.
2517

capetown - I topped up this morning 10k @ 5.86 (mid 5.88) and that was a T25. Just wish it could have been more!

I doubt that the Amer news will be anything other than positive, not least because bad news could have been (and would have had to have been) released some while ago. Blue Oar might have some explaining to do if that assumption is incorrect! As to how positive - there are still 3 or 4 potential items that should come through very soon - all of which should be capable of getting this stock going again.

2517,same here.