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.)

b>



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.

.and there was I expecting news that they were going to un tie !!! - with AMER taking over the Repsol quota.

Perhaps this is more complex than we thought with Amer taking over Repsols quota in Colombia - but forming an alliance in Paraguay ? bwdik

larger buys re appearing

Let's hope these do something to propel the share price in the right direction.

Can anyone hazard a guess as to what is happening here. These big trades look like sells to me - but the sp has not dropped - so are they buys - if so why has not the sp risen .

Confused - you bet I am ?

My guess is that they are weak sells being mopped up by maybe one source. For the timebeing the sp looks like it is going nowhere - neither up nor down. If rumours can be believed on this stock the lack of any announcement on things like any Repsol deal is because there are time periods between deals being struck and announcements being made public (possibly to cover any 'challenge period'). Whether that is the real reason I don't know but maybe someone with time on their hands and a better knowledge of Spanish than me would like to check the ANH website since the regulations will be likely to be there.
Alternatively it could just be a case of a packed ANH agenda and the holiday period; for those that remember, the Primavera allocation was delayed several months by being caught up in just this way.

http://translate.google.com/translate_t

Come on guys & gals - let's have a few comments to keep us going while we wait for some news.

Blackdown, Why? Until the company says something I now believe nothing that comes out on this stock from so called broker or any other sources. I think that we are fortunate to have a competent CEO but less fortunate to have a Chairman that is really a 'legend in his own lunchtime'. One year+ on from his appointment and the sp is below the last placing price with only a dribble of oil coming out. So much for the 'cranking up production to 3,000 b/d as quickly as possible'. What a lot of rubbish that was. For all that, I still won't sell these because the underlying assets are full of potential - it just may need someone with a bit more drive to exploit them.....and perhaps that is what will happen. Here's hoping as my patience has worn thin.
Blackdown, you are probably sorry you asked!!!!

SS,

Fair comment. Hopefully, it's a case of the darkest hour being just before dawn.

selling at 4p omg

It will be interesting to see if it bottoms out at this price.

More interesting if we could reach a new high in our life time!

I am hoping this is the bottom as i have bought more today.

Even small demand will have a positive impact.

Just seen a 1 mill plus sell go through,so i guess we will see a further fall!

not close to the bottom yet. 2p

You should have listened to the poster called The French Connection over a year ago.

Ah, that old chestnut .. hindsight..if we had the benefit of that we wouldn't need to listen to anyone ...

It wasn't hindsight it was foresight, he sold out when the price was 12p, and gave his reason's why.

Yes, but it's not surprising many ignored someone as smug and vitriolic as French Connection.