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.

RNS due on Friday

I agree with Friday.

BD could you Email me
shylock727@hotmail.com

The low volume suggests that those brokers who have received the presentation regard themselves as unable to buy in the market until Friday. Or they didn't believe what they were being told.
As for the placing price - I had been told that a premium to the sp may happen. Not sure that that is going to be the case although if the next 5 quarters' plans materialise then the sp should be way ahead of where it is now.

SS I am puzzled about who is invited here.
Page 16, second line " Exiting" is that a mis print
should it be existing???

M/L I'm not clear about that either. It could be either. If it relates to the new blocks they seem to have acquired, it could be that they have 100% of these ie no existing shareholders. Once we get to Friday, a clearly written RNS is needed.

Just a thought, but what if the whole placing bar 0.00001% was taken up by one buyer at a premium, the strike price being the price offered by the under bidder for the 0.00001%? It would be a good way of getting a partner on board at a price which reflected open market value on assets which are quite hard to accurately value right now.

SS, thks for that. I am a little ahead of you on thinking about 1 bidder!!
Here is a post I made Monday I think it was:


moneylender - 27 Apr'10 - 08:50 - 6676 of 6771 edit

How's this for a little speculation.
This has been put together by RBC, Royal Bank of Cananda.
suppose there is only one real bidder Grand Tierra!!!
Maybe at a more realistic strike price of 30p plus, that would give them
10% of Amer. We would then have a very strong partner to really get things done in Paraguay. They have the rigs, they have the know how, they have the cash!!!!

All speculative and based on no more than a Canadian link.

M/L That sounds all very plausible - I had heard another name suggested as a potential partner. Friday should be interesting.

I would have expected a bit more volume here now that there is so much info regarding future plans, presentations etc in the public domain. Maybe people are being cautious because no-one yet knows what the placing price will be.

Taking a 3, 6, 12-month view perhaps it doesn't matter. If they can raise the cash required to expedite various projects, then great. Just surprised it has not caused more interest.

One piece of news which has not yet been revealed is the result of remedial work at Iguasa. I'm assuming it has gone well, and that we'll be informed tomorrow or Friday along with other matters.

Regarding GTE. I appreciate it is just speculation but I'd be happy to have them on board. I was always impressed with the way they got things moving in Colombia with double-quick speed.

BWD-cant see those who are not fortunate enough to be receiving shares via a placing being allowed to buy until the results of the placing are made known to PI's.
Friday seems to be the concensus for this.

bid is all over the place; but offer remains rigid @ 17p ....hence methinks 17p will turn out to be the striking price. ........As reg. difficulties with lguasa ,the real problem with fractured source rock{ caused in this instance by excessive mud weight} is more likely to manifest and propogate itself at the production phase- poor circulation - as opposed to making right exploratory work accessing the said basin . Alexanders oil and gas connections suggests all neccassary preparatory work to remedy access is minimal- and quite interestingly suggests the said problematic basin while complex is not difficult to rectify - yielding both oil and accompanying gas condensates which happens to be a high quality oil found in the prescence of natural gas with a market price exceeding that of Brent . ............./ Could have something quite interesting find on our hands here

Yuff - I just thought that the PIs, who are now at least aware of the gist of what is being presented, would be buying.
TFC -regarding the remedial work at Iguasa, I was told at the outset by two experts (who have no financial interest in AMER) that it was a common problem and very simple thing to fix.

BWD -Are we not singing from same songsheet ?

TFC. Yes we are in perfect harmony! I was agreeing with you. (If it came across differently, apologies). I am very excited about what is happening with AMER. I always have been - although the wait involved can be frustrating.
I just hope that the party isn't spoiled by a disappointing placing price, or events involving PIGS etc.

BWD-placings are often met with a positive reaction from the City-as opposed to a rights.

I just hope that any RNS will take us forward and not backwards in price as has so often been the case.

However , I do believe this time it is different. I believe we are entering a new era of guaranteed income to the tune of several 000's barrels per day. We are going to be drilling more wells in areas that have proven reserves. I can wait another year for the steady climb to a rerating of AMER.

TFC
Have a look at my new thread on Kibo mining [ KIBO ] , and let me know what you think............ and when are you going to send that email via moneyam ?

Placing's at the wrong price to the wrong names , can stuff the share price for month's a,la Sterling oil. Look how RAB use to operate.

Yuff - yes, definitely a new era - and all good stuff. Hopefully, it will start on a positive note tomorrow!

Presentation here:

http://www.amerisurresources.com/Amerisur_Investor_Presentation_April_2010.pdf

Next question-how will the city receive this excellent news?

16.5 ? could be worse could be better, prefer 17p