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.

Can't blame them for that, serves us right for having our profit taking price at a higher level eh! Or put another way we should have bought them cheaper than we did.
2517

Posted across the way by Valentine who has done an enormous amount of research into Amer/chaco.


Getting back to solid earth. I won't be posting my holiday snaps here btw. This is worse than horses!

There is a 1yr rule in Colombia for those wishing to attain operator status in a said field. You must have the wherewithal deposited in an account 1yr prior to the grant of status. The date of the placing @ 6p, I am informed, was May 24th 2007. How can I forget eh, andre? How can I forget eh!!????
The next meeting of ANH, according to scribes herewith, is next Thurs 29th May.
To gain operator status you require 55% of the field. Repsol have 35% and we have 25%. 25+35 = 60% minus 5% royalty for Repsol, and nominal payment of maybe $2m, leaves us with, you've guessed it, 55% of Alea.
Gold are going through the same process, exactly, to buy out an 'inactive' partner in their Azar block down the road from us; Rig(Pride-17) supplied by GT. Cost to GOO now $4m, due to recent rise in price of oil. We got ours for maybe $2m plus %..We and 2-3 other currently small 'operators' are ahead of the game in Colombia. We are leaders of the pack. GT had foresight to get in and sign all up co's in Putumayo/Magdelena for rigs way back. I can elaborate further if you wish.
The army built the roads and infrastructure and protect us from kidnappers and farc and whatever..for a fee. This also keeps the environmentalists at bay but that is another story.
DYOR!!!!

The 1yr rule is the reason why we've been a bit quiet of late..expires tomorrow!!

Do not get the chance to look across the way but Valentine has clearly done his homework and is correct in his assumption.
We are looking at news to be released by latest w/c2nd June, which along with other issues clearly tie up with what Valentine has written.
A first class post.

Ticking along quite nicely.
2517

sivad,

We seem to have been expecting news forever here, and I was wondering if you are still expecting news to be released in the time frame w/c 2nd June.

mabel

Mabel, One of the problems we all have with this stock (unless sivad has a new source?) is that the news leaks all seem to come from the same City source and although that source has been correct, other than as far as timing which is understandable given that everything hinges around ANH meetings, the source also has quite an incentive to ensure that this is a winner. The May ANH meeting would have taken place yesterday if the past timetables is anything to go by so if Amer's items were on the Agenda and the meeting sat long enough to include those items, then news should come out early next week. But nothing seems for certain as far as the ANH timetables are concerned.

I personally dont think there will be an update until the prelims in just under two weeks.

Have to agree with you sharesure. I guess it'll happen when it happens.

mabel

I think six months since the notice of discovery may have some relevance here in terms of ANH time limits.

mabel -I am sorry to have to tell you that news will be slightly delayed until the following week w/ c 9th June-but not on 9th.
Purely admin delays.

sivad,

many thanks for that information, a week is nothing, I am assuming is as good as we all expect it to be, Oh I see the 9th is a Sunday, fair point

Regards

stewart

sivad,

I have a couple of questions, firstly I have read your posts with interest since last year and most of the time your predictions have been very accurate, I would like to post these to show people how credable you knowledge seems to be however if you do not wish me to I won't.

My second question refers to your post of 18 October 2007 where you forecast if all went well including Repsol deal you predicted a price of 55p however in your post of 17 May 2008 you mention a price for end of 2008 at 18p to 20p, I wondered if you could explain.

regards

stewart

sivad,

Many thanks for your response.

mabel

Stewart-I have no problem with your request.

With regard to 55p v 20p-I have erred on the side of caution.
I was fully expecting a quicker production schedule than Amer have actually delivered.
As we are still relatively in unknown waters as to what is actually being extracted ,and I am expecting these figures to be updated in a week or so.

Notwithstanding this,the prediction may alter on what share Amer will eventually hold in specific field areas.I will be interested to see how future funding for said acquisition unfolds.

Fenix is the joker in the pack-It may turn out to be an absolute winner or just an also ran.
More information on this and Paraguay is most certainly needed to form an opinion.

I do believe that by year end and with a favourable wind we will leave behind the current 8.25p share price by some considerable distance.

sivad,

Many thanks for your answer, I can see why you perhaps revised your figures, perhaps matters will now proceed quickly and we can approach your initial valuation with renewed enthusiasm, I am fully loaded and have been for some time but if I could I would add more.

We are at a milestone here and I believe news is due next week at the latest, I have been here 3 years, another week is nothing, thanks for your permission to post, it will be interesting to see peoples reaction as I value your input here and your posts bear out my confidence.

Regards

Stewart

As promised the posts from sivad which clearly show how accurate he has been in the past, this gives me great confidence, I have the permission of sivad to post this, check out his record it's excellent

many thank sivad

18 Oct 2007 18:42 - 256 of 800
bigwavedave-I only impart what the boys wish to tell me.So far they have been correct.

Big buying will continue with news in the pipeline.

Price target if all drilling is positive supported with and by the Repsol deal -55p


27 Oct 2007 15:02 - 285 of 800
Gentlemen,we can look forward to a short term price of 11/12p-this from my contact in the Sq M.
The next piece of news is imminent and will result in greater earnings from oil flow than previously expected


28 Nov 2007 14:57 - 356 of 800
UOTLD-my people tell me that what you say is not a million miles from being very close as to what is shortly to be announced.

I believe that when it is announced an awful lot of people will be surprised as to just how important to AMER the news will be


02 Jan 2008 12:28 - 463 of 800
News shortly and it will be positive.

10 Jan 2008 08:44 - 485 of 800
Good news-Again for those who are interested confirmation will follow as to how valuable this discovery is followed by a further update and strengthening of the share price.
Note the comment in todays Times newspaper

09 Apr 2008 16:27 - 691 of 800
Sharesure

I would not be a seller of this stock this week,next week or any week,until full news is released giving us the update on the potentail reserves this company clearly has now and will have an awful lot more once news of the % shareholding is released.

I am unable to fathom why it has taken so long when my contacts indicated to me 2 weeks ago that all was done and dusted-to coin a phrase.
EVO are clearly under instruction to keep a bottom price in place at 5.75.

You have to ask yourself why as these people do not normally accumulate stock unless they see a quick return.

HOLD

16 May 2008 11:59 - 774 of 800
I can tell you that once the news update is released -which is not now far away the current price will be a distant memory.

17 May 2008 15:54 - 778 of 800
Talking to my contacts we could be looking at an initial 3p spike should there be a volume follow through.
From there once Fenix is looped we could climb over the course of the year to an estimated 18/20p.

However nothing is certain I am afraid and with shares you have to expect the unexpected,both positves and negatives

23 May 2008 12:42 - 792 of 800
Do not get the chance to look across the way but Valentine has clearly done his homework and is correct in his assumption.
We are looking at news to be released by latest w/c2nd June, which along with other issues clearly tie up with what Valentine has written.
A first class post.

30 May 2008 14:29 - 799 of 800
mabel -I am sorry to have to tell you that news will be slightly delayed until the following week w/ c 9th June-but not on 9th.
Purely admin delays.


02 Jun 2008 10:31 - 804 of 804
sivad,

Many thanks for your answer, I can see why you perhaps revised your figures, perhaps matters will now proceed quickly and we can approach your initial valuation with renewed enthusiasm, I am fully loaded and have been for some time but if I could I would add more.

We are at a milestone here and I believe news is due next week at the latest, I have been here 3 years, another week is nothing, thanks for your permission to post, it will be interesting to see peoples reaction as I value your input here.

I hear the milestone is well passed. 2000blspd from 3 wells being trucked out
over the recent months. 27 % profit to amer

Nite: interesting ... but 3 wells? Anything more you can say?

We dont have 3 wells with oil in them!!!!


M

just to prove my point that we do not know what we have, the following is from the Company:

Plat1 the first new well in a 2 well programme, has been drilled to a
total depth of 8,390ft. The reservoir section was encountered 55ft deeper at the
Platanillo-1 location which is located approximately 2,200m from Alea-1, and
analysis of electric logs indicates that the well might be close to the
transition zone between the oil and WATER columns of the Field.
The well has therefore been temporarily plugged

Plat 2 That test initially produced crude oil atup to 33.4 degrees API at rates up to 430 barrels of oil per day (BOPD) through
a 22/64' choke, after which an increased WATER cut up to 70% was observed in the
oil flow. The reasons for the increase are currently under review.

Up to 70% WATER is rubbish, that why we are still at 8p
why cant you guys understand this?

M