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 believe that we will be 20p + by September.

The ANH meeting today might have a bearing on how this responds tomorrow or early next week.

That surely depends if the outcome of the meeting is released to the public immediately.....and going by the past few years, that's highly doubtful unfortunately, but here's hoping anyway, if it's good news.

SS,

what makes you think there was an ANH meeting today?
I always thought the meetings were the last Thurs of
the Month.

Blackdown, here's hoping you get the price right then!!!!

M

ML I thought the AGM date was selected with that in mind? I realise that next Thursday is the last one in July. The ANH are reputed to control newsflow release dates (quite why they should wish to be so controlling isn't clear to me) and to penalise those who jump the gun quite heavily. There are quite a few issues surrounding this stock where I think the Board owes its shareholders an explanation - not least why so much 'information' seems to be generally known, or rumoured to be known, but not published. It is time they were open with all of their shareholders.

completely agree SS, I think they will be shocked at the level of discontent amongst shareholders at the AGM. I wish I was there to see it. Will anybody be doing an AGM report?

SS, if it was then its news to me. i am still confident we will
get a good OU on tues morning, but maybe all those that
are looking for an instant hit/rerating will be very disappointed.
I have been preaching for a long time now that your RTSpecs
are too heavily tinted. Having said that I know there
are some exciting things going on if the rumours are correct,
so potential to the upside is still a poss.

Robbie, I will get a report on here ASAP, I live about 100 yds from HQ
but I have promissed a few to take them on a tour of the City
and let them ply me with alcohol for my troubles!!!

M

ML I don't think that I do have any RT specs on this one now; as far as I am concerned I am taking nothing at face value until it is reported. For as long as my interests are aligned with the mgt of the company then I suspect that I can relax; the day they aren't then it would very much be time to move on. They have much to prove in my view.

Good stuff, cheers ML, looking forward to reading your slurred report:)

The market is rotten at present and not a pleasant place to be if things go against you even marginally. The slightest hint that things are awry causes sp's to topple, some for no apparent reason.
Amerisur has been the model of consistency recently. No news whatsoever or so it appears.
Still the general uncertainty is affecting and clouding some posters judgement.
We will hear positive news on Tuesday. John Wardle will be attending and will inform us of all matters pertaining to delays mainly caused by Colombian bureaucracy, now surmounted and conquered. As a company they are wide open to attack on corporate deficiencies and will have to come up with a damn fine story to countermand these criticisms alone.
They have, as has been pointed out elsewhere, 'taken it to the wire'. and that wire has just been breached. If you dropped out due to hard times, well tough. If you lost faith due to things happening elsewhere in the market that is sad. No bad news will ensue. I expect news of Alea/Platanillo contents, flow rates and production/revenue that accrues directly to us. News of Fenix seismics and projected contents. Update on progress in Paraguay and news of parties interested in joining Amer there, and also as JV's in Fenix. Lots of long sought detail to regale and sate the long-suffering shareholder with.
It may be awful holding other shares presently with the uncertainty of the general market but Amer have not disappointed in their latest most recent endeavours and will not do so now. Do not let the rest of the market affect your judgement here.
Looking forward to next week, also the week after and further into the year when Amer will have progressed even more in Colombia based on the freedoms granted by the hard won achievement of Operator status. A different game ensues as from Tuesday I undestand..

Great post. Much the best I have read on this share.

Valentine

You seem to be quite specific regarding the areas in which you are expecting an update. My take is that they are going to have to tell us at some point so why not now?

If the potential in this company is anywhere near what we have been led to believe then the carrot needs to be dangled to get the pension firms interested,, and I can see no reason not to dangle that carrot now.

One caveat though. I expect any initial estimates regarding field sizes to be preliminary with room to expand to the upside upon further prodding. How long did it take Cairn energy to reveal the true size of their elephant field in India.

Alfred

8.875 MILLION,thats one hell of a rollover,what i dont understand is why was the final total made up in two parts?,unless its sivad or ss buying!

news soon?

Capetown, not that rich these days - thanks to Amer and a few other companies where time does not seem to be expressed in the same terms. News that Alea is going to change all that surely has to come out tomorrow or we are all being suckered in?

SS,

Hopefully, much more than just Alea.

Blackdown, yes, if you can believe an overheard conversation in a coffee bar in St Mellons, Fenix figures in the update tomorrow as well. I am content to wait until then!

Amerisur Resources Plc ('the Company')




AGM Trading Update




Amerisur Resources Plc, the oil and gas explorer and developer focused on South America, holds its Annual General Meeting ('AGM') today at 10.00am.




At that meeting, Giles Clarke, Chairman will make the following comments:




'We are very pleased with our achievements in the past year to focus the business on achieving our three priorities - generating cash flows, delivering production and increasing our exposure to low risk, high impact prospects.




'Since becoming operator of the Platanillo block in June, and recently gaining the controlling interest in the Fenix block, we are already seeing the benefits of greater control.




'The Board looks to the short, medium and long-term future with a significant degree of confidence, given the current and forthcoming production and the powerful position we have with our two main low risk and highly prospective blocks, which demonstrate production, known resources, exciting upside to those resources and an extremely attractive suite of exploration prospects.'




John Wardle, Chief Executive Officer will give the following update:




'We are pleased to have recommenced the long-term testing of Alea-1R well. Last year, we re-perforated the Lower U Sandstone and produced approximately 10,000 barrels of oil during an initial test of three months. On Sunday 27th July the well Alea-1 was re-opened on a 10/64' choke into newly commissioned facilities. Those facilities were approved by Ministry of Mines and Energy (MME) to perform a Long Term Test until at least the end of the current evaluation period, 9th January 2009. The well is currently producing at a rate of 85 BOPD on the above mentioned choke setting, on natural flow with 160psi of pressure at the wellhead. Installations continue to place Platanillo-2 on line, which is expected within the next 10 days.




'We have now been operator at Platanillo for almost a month, and it is becoming evident that this increased control is enabling us to accelerate the work programme. We believe there is significant value and are applying all efforts to turn these discoveries into commercial production. Long-term testing of the two wells over the coming months will help us determine the next phase of the work programme for this block.




'On Fenix, we are very encouraged by the results of the 2D and 3D seismic data, which has now been analysed, and to date have identified two very interesting exploration leads and a firm exploration prospect in this block. The prospect is an up-dip target from the wells La Tigra-9 and 10, drilled in 1927 and 1969 respectively, which both produced oil. The Company believes those wells did not reach the principal sands in the reservoir sections, and plans a well to test those intervals. The potential resources associated with this target are 8 to 16 MMBO. The southern lead is a structure similar to the Bonanza field alongside. This lead may contain potential resources in the range 5 to 23 MMBO. The second lead is an extension of the La Tigra trend to the north, and may have a resource potential of 15 to 45 MMBO.




'Now we have control, there are attractive options to take forward a cost effective and focussed drilling programme and are currently in potential farm out discussions. We expect the first well to be spudded in Fenix during the second quarter of 2009, subject to the award of an environmental license and drilling rig availability.




'We are also considering other potential prospects and have a pipeline of activity that we anticipate has the capacity to deliver additional medium term production.'

Is it enough of an update to satisfy us holders

reserves of between 37 mmbo-84 mmbo sounds good
but production of only 90bopd /25% is not very eye catching
no news on extra %
no details of farm out

Could be a lively AGM

Good luck to all holders

Well back home now, no champagne only tears!

Well we got the RNS as I said we would, unfortunately
I have already bought all my stock back that I want.
All you re rating guys are going to be sorely disappointed.
We sat there and listened to an excellent presentation unfortunately
it didnt have the content that we all yearned for. Alea is back into testing
as per the RNS, this will last 6 Months, they will fit a jet pump to it
as and when nec. Plat2 will go into test in 10 days time. No news on Fenix other than what was in RNS, they plan to make some decisions on a JV for it by end of Sept.

I asked several questions, firstly for JW opinion of the water problem in Plat2.
Basically its something they have to examine more but his answer said they prob cant improve on it so we will only have 2 zones from that well. I then asked why we were not informed od the cessation of production in FEB, their reply was that they didnt think it was a price sensitive issue as the wells were
only in testing phase!
There were other questions raised about the finances need to continue and we were assured that all the nec finances were in place and there would be no further dilution.
JW starts his bi annual tour if the intitutions on monday, I just hope they are able to release some more news before then to make his job a little easier.

All in all NO bad news just re adjust your time scales!!!!!!!

M

From 3 AGM updates I have had it does look like the potential is still very much there but will take longer than certain City brokers would have had us believe all of this time. I hope now that that broker (who was happy to take credit for putting him there) and anyone else who thought our expensive chairman is some sort of magician will now view him for what he has turned out to be - very ordinary. As for his contempt for ordinary shareholders, leaving them to slum it on cold coffee whilst he pushes off for lunch says it all.

In fairness to you, ML, you were absolutely right. I take back what I said.

Hopefully, and from now on, the 'it must happen now brigade' will calm down a bit and we will see the gradual development of AMER into a decent size company.