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.

Well not long to go now and it is encouraging to see that some fairly largish buys are going through from perhaps others who see the future is bright.
AMER has held up pretty well with an overall 1p -ok only 1p but it will be more soon I am sure-without the normal driftback.
I would ignore the WINS/SCAP moves as those to firms as a rule tend to move on the slightest buy/sell.

I hear the news that will really make people wake up and smell the coffee will be in the lead up to the AGM and that this relates to Fenix acreage.

Yes sivad. Hope you are right. Very interested to see what they have to say about Alea/Plat also. I would expect news on a third drill amongst other matters.

With regard to Plat/Alea one would assume the quality of the sweet crude being tested may wll show to be above average for the area.
We will see.
Again,encouraging to see fairly largish buying occuring this morning.

With regard to Plat/Alea one would assume the quality of the sweet crude being tested may wll show to be above average for the area.
We will see.
Again,encouraging to see fairly largish buying occuring this morning.

There was a doc produced for a Colombian govt. department last month stating an API of 31.8 - so medium light, I believe, and better quality than another productive field close by.

BWD, I would be interested to look at that Doc. Any chance
you could mail it to me, pretty please!

M

4 plus 5 million buy just gone through,someone very confident!

Someone just saw the full results of Fenix seismics, no doubt?
I think we will also hear that the Repsol share is sealed.
So we have Alea/Platanillo pumping oil in increasing volume for six months producing 2500 bpd and we just got the rights to 60% of the principle less costs.
How many barrels will be declared based on the six month test? More than people think.
What have got in Fenix? Quite a lot more than in A/P.
What else have we got our hands on in Colombia?
Who are we getting into bed with for Fenix? Ecopetrol?
Some stunning detail to emerge over a couple or three RNS' leading to the AGM.
In addition there is Paraguay but that will look after itself for the moment. Colombia is so much better than anyone has given credit for so far!
Wait'n'see. Not long either.

Capetown - what makes you think they are a buy ??

bhunt,what makes you think they are not?,
4 mill buy
5mill buy
4.1 mill sell

I dont know - I just wondered if you had more to back up your assumption. I agree it looks as you say - others seem to beleive the 4.1m may also be a buy.

I guess we will have to wait until the morning ?

just checked on my barclays acc and i can confirm its showing
4 mill buy at 354.000
4.1 mill sell at 358.750
5 mill buy at 444.500

just checked on my barclays acc and i can confirm its showing
4 mill buy at 354.000
4.1 mill sell at 358.750
5 mill buy at 444.500

Buy / Sell is judged on the basis of the trade price in relation to the mid-price at the time the trade is published, e.g. if the trade price is greater than the mid-price, a purchase is assumed. Large trades can be subject to a delay in publication which may result in an unreliable interpretation.

And when exactly do you think these trades were placed???

M

The 5m were bought late last evening after some argey bargey, but I do not know who was the seller?

Very strange to see such impressive trades pass through the books but hardly a ripple on the price.
I read it that shares are simply changing hands off market but due to size must be notified.
Similar story today.
A willing buyer and a willing seller..The seller is EVO but who is the buyer.

EVO have done very well on this deal having accumulated shares from being on the bid mostly alone from the 6p days.

Dont lose sight of who the house broker is.

All falling in to place nicely.

sivad,

EVO are actually still on the bid and on the offer, I wondered how you summised that EVO were the seller, presumably because they have been on the bid for months from 5-75.

Agreed looks very good, I note we are in the period that you predicted news, assume we are now looking at the 24 June at the latest.

Doubt Evo would be behind any disposal of shares other than intra-fund transactions because they know the story on Chaco and are very bullish.This stock should be strengthening further even though there are 7 trading days to their update.

Disappointed that they were not able to keep to the timetable for keeping shareholders updated.
This was not for want of trying,but the legal logistics are simply enormous.
We can take it that 24th will bring suitable information.
Perhaps and this is only me guessing,maybe a little sweetner before 24th.