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.

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.

Sharesure-I agree-especially this snippet which I have extracted:

"Amerisur is in better shape than it has ever been. We have a clear strategy, we have a controlling interest in our Fix asset, we have two new discoveries in our Platanillo block, where, as operator, we will generate significant cash flows this year and we are well capitalised to take advantage of the opportunities open to us as a Company."

Unquote

Incredible,amer held its price today.

If you had an intimation of the barrelage contained in Fenix and perhaps access to the elusive Annual Report you would not be selling either.
Yes remarkable we remained aloft in a sea of sinking red today. The tide can only turn with the publication of the errant Report; and approach of the AGM and not least the increasing price per barrel.
Next few days could produce what we have been waiting patiently for. The reason for the delay in releasing the news is most frustrating.
Fenix alone, and also ambitions in Paraguay, should put the smile back on a few faces, not forgetting 100% of Alea.

Amer would have been enjoying a rising sp even in these times but there seem to be some sellers needing to raise cash - most likely entirely unconnected with Amer - more to do with margin calls. All the rumours on Amer point to some of the news we have been waiting for being held back because it is commercially sensitive to other things the company is trying to do. The fact that Evo remains there to mop up what shares come available is reassuring that the rumours of impending good news being accurate.

SS, Evo have been on the bid collecting shares for a good 5 Months or more!!
reason being, I know not, it could be they have a buyer or it could be other
more sinister reasons knowing EVO's history.

M

M/L Most likely they have accepted whatever it is that they have been told about the future for Amer. Don't know much about Evo being 'sinister' - what are they supposed to have done?

If he tells you, they'll kill him.

Amerisur Resources - Annual Report Availability


RNS Number : 1756Y
Amerisur Resources PLC
02 July 2008


2 July 2008

Amerisur Resources PLC ('the Company')

Annual Report Availability

The Company confirms the Annual Report is being sent to shareholders and is currently available on the Company's website www.amerisurresources.com.

- Ends -

So the directors have filled their snouts from the Amer share options trough at a nice low price. (Of course not that that has any relationship to the recent drop in SP.)

Maybe now they will start releasing the information that must be there and let the rest of us benefit as well.

WDIK, PDYOR.

camlad

Here, here. Couldn't agree more !!