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.

surely better to have oil in the pipeline - lol!

Well one would tend to reap the other cynic

didn't know they carried sand and dust in pipelines! ...... not sure there would be much call by an end-user anyway - lol!

promise i'm not gloating, for there is nothing to gloat about in these markets unless you have a load of shorts ....... a wry comment merely relating back to something written a few days back ...... of the two total crap companies, at least GOO is standing up better than AMER - or at least not falling over

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Just amazed by the lack of thought in the ramblings of some posters.

Whether this is suffering due to the general downturn in the markets or something AMER specific, only time will tell, I still hold these along with PET,SER, and many other AIM stocks, but these are the occasions to be picking up solid dividend paying stock, such as CPG,KGF,VOD, certain banking stocks, and such like, I also like MLW for it's mining spread, ok they may weaken further but if you have a 12-18 month view then these are the ones to be in. All imo of course.
2517

you have not been following ..... i hold GOO and used to hold CHP (AMER) ...... the post referred to one was where i asked which if either would be blossoming in 12 months time ..... don't feel like the Lone Ranger; we are all gettinmg smashed about ...... selling is totally indiscriminate - e.g. TAN, who came up with yet another positive RNS which would normally have boosted sp is down 14

cynic--------if you are referring to my post, my post is totally independent of your ongoing dissatisfaction of GOO & AMER, what my post is indicating is that there are many opportunities in the market to pick up well established, solid co's @ relatively cheap prices (on a 12-18 month view). Whilst I read most posts on my preferred threads I have no wish to engage in the soap opera like shenanigans you appear to want to promote.
2517

??????????????? ...... a little humour, whether gallows or otherwise does not go amiss

I've always been one to accept whatever the share price is, the share price is... but this sell off is bordering on the ridiculous...

its not confined to AMER.

Two big sells today, someone heard a whisper?

it was a rollover, not two sells. So someone deciding to stay in the game.

Dave - that wave went over my head - What do you mean by rollover and staying in the game ? At least we have a Trading Statement this morning and dates to lool forward to.

The last quarter of 2007 will be pivotal for AMER.

good reaction in the sp at least

oak - some people "buy" their shares on extended settlement, say 20 days, gambling that the price will improve before then. If it does they can sell them for a profit without actually having to pay for them in the first place. Of course, if it drops you are stuffed. But some brokers allow you to "roll" your trade for a further period. You can sometimes spot a rollover because it will appear as two trades for the same number of shares, just seconds apart and at a slightly different price. The trader has sold the shares and then bought them back at a slightly higher rate.
Often happens when investors are expecting good news around the corner! Good timing in yesterday's case.

Dave - Thanks for that very clear explanation - Good luck

No worries. Never done it myself - a different league. The RNS should steady a few nerves and quieten the doubters for a while. But what will happen to the sp in the next few weeks is anyone's guess. Good luck to you too.

decent RNS and only 2 or 3 posts? Whats happening to this board?!
anyone care to comment on where we go from here.
I for one am now more optimistic.