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.

The only thing that changed, and dropped the price, was that some felt the flow-test would be continuous from January when they first alerted us to it. They appear to have ceased the flow testing somewhere in Feb, ergo the assumed 'profit' never transpired. Whether they stopped because it would alert Repsol to matters they would rather keep under wraps, or because of Farc, or other infrastructure problems we shall have to wait until the AGM to find out exactly what caused the cessation.
Bureaucracy is at least partially responsible and they may need the operator status to continue over a certain barrelage.
Questions will be asked.
They intend going back into Alea shortly and restarting production. Needless to say probably after the AGM now and after the Repsol deal is completed, and possibly the the Ecopetrol share.. They are keeping all close to chest but I have no doubt all those questions will be answered on AGM day. Hearing beforehand depends on the speed of the Colombian red-tape process and that is not fast!
I look forward to the AGM.

Today's fall was incipient fear that went through the markets worldwide. Some claim the uncertainty is not over yet!
A Mid-July announcement may now be somewhat optimistic.

Thanks Uotld- Clear to the point post reassuring and much appreciated

Brief mention in D Express market report today: "Hopes for a positive update from Colombia lifted oil and gas explorer Amerisur Resources 0.13p to 6p."

BWD I think we might hear very soon that our '5m option' FD has been earning his keep (or trying to justify his options?) by signing a few documents in the middle of this week. The rules are release the news within 3 trading days? - hope that this lot know that.

Sharesure,
It does not look like the news will be released today,
Are youre hopes of the new management somewhat diminished as you refer to them as THIS LOT ?,do you think we may see a tick up with regard to youre post,if you have heard it,then others will have too?

good to see you posting.

Capetown,
News on a Friday usually doesn't have the same impact in my experience (cf with EME which has just issued a good update today - worth having a look at as there is more to come there very soon). So you are likely to be right that this will come out early next week although I wouldn't put it past the current mgt to have a reason to delay its release (eg commercial sensitivity or blame it on the ANH).
As for the current UK mgt (I do think JW in Colombia is well worth having on board) I don't think that they are anything that special - just fairly workmanlike who will do what many other mgt. teams are quite capable of achieving - its just that the chairman in particular strikes me as appearing greedy and arrogant (at our expense given all the options he wished to award himself - but then relinquished under pressure?). A year on and we are at the same offer sp of the last Placing. If he had half the reputation with institutions that he seems to have persuaded others that he had at the time he was appointed then that would not be the case even in the current market.

Great post, unfortunately all true, especially the last paragraph sadly...

DITO
Thanks sharesure.

Hi Sharesure. Agreed. Not sure some parties share our view about what updates need to be provided. They offered some brief excuses/reasons in the last RNS about the long wait but I would prefer a fuller explanation at the AGM, if not before. I hope the suit you refer to understands what is required here.

There are things that AMER management can and should be doing. What they can't do, I assume, is speed up the Colombian bureaucratic processes.

Holders will just have to be patient.

I never quite understand the AIM rules governing the issue of price sensitive information. For example if the Repsol deal has been done surely this should be announced immediately. I suppose it is a question of form. I gather from the numerous posts elsewhere that the Repsol deal has been done but that the Ecopetrol aspect has all but been done. If I decide to sell my shares and the Directors have withheld price sensitive information what is the position?

The words tough sh?te come to mind,though that should certainley not be the case.

Only 3 trades today.
2517

The Repsol deal is NOT done!!!!

It may be close to finalisation but it has been like that for 12 Months now,
so dont hold your breath. The next news we get and I understand it to be on the day
of the AGM will be confirming operator status and recommencment of production
from Alea field. We may well get some info on future plans that will be juicy
but thats all in the future.

M

M/L that is contrary to what a few 'City' folk have been saying, in particular ones who might reasonably be expected to be reliable. The company might cite commercial sensitivity as a reason for holding back on an RNS and that may be true. I am curious as to how you feel that you know so much with such certainty?

SS, I have been right over the last 6 Months re any news so I dont think I am wrong over the next 6 days. We shall all know next week or maybe Tues week.

M

sivad,

Not seen you post of late, be interested on yout current take on the situation, share price and potential.

ML is only interested in being 'right'. Personally, I couldn't give a t**s whether he is right or wrong. Having flogged the other site to death, he is determined to try and do the same here.

Fortunately, most of the posts here are interesting. One of the downsides of democracy is having to put up with ML's egotistical outpourings.

Ultimately, the truth will out and ML's opinions will be consigned to where they belong: the composting bin. Well only if they are organic and recyclable.

Blackdown, when investing its best to be right more than your wrong!!!

M

lets be honest ML, it is easier to predict no news than it is to predict when news will arrive is it not? Based on probability and the fact that this company very rarely delivers news on time or on a regular basis, then the odds were weighted heavily in your favour over the past 6 months.

When we do get news, it has been hyped up so much that people have bought in anticipation and sell once it arrives, if it does not meet the wild expectations. That is one of the problems we have. I think we should avoid raising expectations despite the clear potential of all our acreage, when news does arrive then maybe a surprise or two will emerge and propel the share price? Here's hoping for a good week, we have waited long enough, but 6p support looks likely and RSI indicates we have been well oversold.

Good luck all