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.

S/S
Surely we must get some operational information on Tues to get the SP moving in the right direction.

Bodeng, In my view we will get quite a significant amount of news on Tuesday. I have backed that hunch with my latest buy yesterday; a bit disconcerting to see that all of the other trades were sells! I don't mind too much being a contrarian thinker on some stocks but on this one I would have thought that others too would have thought it worth having a bit of fun money on the likelihood of a decent announcement.

Yup, the rumours are out there, we shall have to wait and see. The question then will be how much oil is down there and how long it will take before we know the answer. It could be a long wait.

Sharesure,

No matter how tightly a company has managed to keep its security on news' leaks, usually something substantive gets out as major milestones approach. Therefore, based on today's lack of volume, I would doubt that we are going to get a "significant amount of news on Tuesday".

I accept that at least some of today's "sells" are in fact "buys". But even if they were all buys, the volume would not be in line with a major event tomorrow.

We shall see in due course. But for now I would not be surprised if we got another watered down release and the SP suffers accordingly.

All IMHO. BWDIK, PDYOR.

camlad

Camlad, Even though the company and its advisors seem able to prevent leaks it would be unusual to be able to be so successful. So I agree with you that this is too quiet for a spectacular announcement - looks like more of the same for a while yet. My most recent buy last Friday looks to have been too soon.

I don't think anyone has managed to predict news here with pin point accuracy, however someone in the company is prepared to talk because the speculation here and on the other two discussion forums all point the same way. The company is operator with 25%- fact. They have been negotiating with Repsol for some time-fact. they may be negotiating with Ecopetrol rumour. 7 to 70 mbo fact. Financials due out shortly fact.

honk123 everything you say has a ring of truth. I doubt the financials will make an iota of difference.

Not sure I agree when you say someone in the company is prepared to talk-more likely advisors to the company.

The big news will be Fenix and what the 3D has shown up in terms of probable reserves.

This is what excites me and this is what I am hoping for tomorrow-although realistically more likely to get these numbers pre 29th July.

Whatever comes tomorrow,it is well overdue and must surely carry some impact to attract new investors going forward.

sivad,

Good to see you posting, whilst I agree that Fenix could well be the "Jewel in the Crown" the Platanillo block is where we are now, without revenues from this project we are going no where, the re opened well at Alea and the 2 new areas where oil flowed at 430 bopd and 460 bopd is what matters, a % increase to 60% or even 100% would be superb but it must be a % of a decent sized reservoir.

I want to see oil flowing now or in the very near term, this is what will generate revenues for further drilling both at Platanillo and Fenix, we can talk about all the farm outs at Fenix and also at Paraguay but the market needs to show success at Platanillo, if we don't do that then we have failed.

I still hold so clearly I think we are a success but we need to show and prove the figures

IMHO.

honk - Have to agree with you there (although I did expect to see a few decent-sized buys today).

Well its upbeat,i will give it that!!,but we need hard figures.

I don't think this is a bad update. But equally it deos not have any of the good news that PI's were expecting. There is no revenue to speak of being generated and no actual production flow. Nor is there an increase in % ownership; nor statements of reserves.

All in all the work to date seems to be more in terms of buidling the foundations for the future again. There is potential there, but it is still "jam tomorrow".

I would expect the market to react badly to this - mainly because of disappointment.

All IMHO. WDIK, PDYOR.

camlad

From my friend Donaferentes on the other channel . . .

"Well, in spite of keeping us waiting so long, JW's report is appallingly written - several grammatical errors and frequent combination of more than one key concept in one sentence. OK, so bad writing does not change the amount of oil in the ground, but I am sure it indicates muddled thinking, if only in respect of what they are trying to tell investors.

I feel none the wiser as to how much oil is estimated in the ground in Colombia, nor how much will flow at a daily rate. It's all very bitty. Paraguay is very sparse as to concrete news still.

I just am not sure I believe their timescale, after so long to suddenly achieve all they are saying in the next 6 months.

Overall I am left with the impression they are either putting a gloss on things, promising more than reality will eventually confirm, or they are down-playing already achieved future news to soften the price whilst directors and friends buy in after the end of the close period.

Looking at GC's other companies - notably PUR - he is evidently not an adept at seemless management of the SP. The market seems to agree broadly with me in its opening moments. We will do well to sit on the 8p support line, but I fear that may be breached during the day as investors start to drift for lack of committed interest. Sitting on a 30% loss from 10.9p average, I am underwhelmed by this morning's revelations.

Apologies for being somewhat down-beat. I'm happy to hear arguments to the contrary from those better informed than me."

Stockdog,how can anyone argue with all of what you say,upbeat,NO FACTS!.
Waited a year for this,really dissapointed.

Lots of good words coming out from the Board-but nothing that we were really looking forward to.
Seems that the RNS today is already out of date and I believe that at the AGM further updates will be given to us.

In fact there was actually nothing new in the RNS today that we did not already know about.

Slightly disappointed but very confident for the future.

I'm not surprised at all, this has happened with so many small co's, especially oilies that I've come to accept it as normal. I sold SER the day before their news, news release saw the sp plummet, pity I didn't sell AMER yesterday, but I believe the sp will crawl back up again as enthusiasm builds ahead of the next news, then------same again.
2517

Following a reasonably upbeat RNS the market has as usual taken a dim view and you can make up your own minds why ! However, this is not helped by "talking the stock down" on this BB" - unless that too is your game - potentially this remains a very very cheap investment with much potential, so trust and patience is required even if we have to dig deep (for both!).

Were is Sharesure with his contacts on the inside ?

O 142,

Couldn't agree more. Plenty to come here for the patient.

Aldwickk, I don't have any contacts on the inside - not sure that I would want them anyway. The ANH meets on the last Thursday of each month (from what I was told some while ago) and that happens to be this week for the June meeting. The ANH also operates a policy of sanctioning release of their decisions and if a company jumps the gun the fines can be steep. Maybe there will be more as a result of this week's meeting -that's if Amer is on the agenda.
There could be some very good commercial reasons why the rest of the information which we all thought would be available around now has not been released; it could also be because the Board doesn't care or whatever.

Closer reading of the Results shows that all of the pointers as to where this is heading over the next 3-6 months are all there. This now looks set fair for a steady run upwards.... at last.