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.

UoTLD

there is no way this company has made a profit this year!!!
Even if Alea was producing a 1000 bod we would still be in a loss
situation according to my calculations.
any revenues due to us
could not have started much before Xmas and the YE was March
thats a max of 3 Months and we are going to make a profit, I do not
think so!!!

M

Moneylender,

I have to disagree regarding profit, don't forget most of the costs associated with the previous year will have been capitalised such as cost of Fenix and the Platanillo block costs of producing the wells.

There will have been revenue in respect of Platanillo because we know oil was flowing, therefore only admin costs to account for, i think we will show a profit.

Stewart

we will know on june 12th. loser buys the Beer, mine's a Stella!!

M

If Stewart is correct, he may be able to afford one for all of us. If you win, we'll understand if you are limited to only buying one Stewart.

I am on a win win situation there!

M

FT today (Sat):
Amerisur Resources , an oil and gas explorer and developer focused on South America, held firm at 6p in spite of rumours about a positive update from its Platanillo-2 well in Colombia.

Shame they did not tell us more of what the rumours actually are,but always good to have a mention,maybee some buying on monday as a direct result of this little snippet,#CHEERS BWD.

capetown. No probs. I had the same thought re the rumours but I guess the FT could be referring to the general feeling that an update on flow rates etc is a long time coming. On one hand I cannot get excited about a one-liner even if it is in the FT. On the other, I think the timing is interesting and I don't think AMER has been mentioned in the FT before.

As its quiet sofar today, I have done some
revenue forcast for the first quarter. I have kept it very basic
as I am not an accountant.


Alea production 200bod
Plat2 production 400bod, estimated
Total 600bod

Period Jan through March
Total production 600X90daysX25%X$70(apx Oil price)
$945000= 472500 worst case scenario.

Increasing production to say 1000bod will give a revenue
of 787500

The journey has started!

M

Todays sellers must be convinced that no news is forthcoming that would make them want to at least hold,horrible sea of red today.

All those larger trades showing as a sell could just be early (pre-8.45am) buys being reported late as above NMS of 100,000 - why else would the SP rise, unless an overhang has been cleared today?

i dont think all the sells shown are sells

sorry i had already posted before i realised stockdog had.

Shall i stay negative,that way the sp will keep rising?
Looks like the party is about to start.

Hope so, i've had these for over ywo years

dcb DITTO,we are the lucky ones,think about those that got in at 19p+,i hope they will be well rewarded too.

So do I cos that'll be me!

maggie,i will DRNK TO THAT!!,good luck.

You'll be able to afford to buy me one! :-)))))

DONE!