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.

As there been a news leak or have the mm's stoped holding back the price ?

both

Roly - l would have suspected much higher volume if a news leak had occured with buying pressure if positive, and conversely , a mass sell off if of a negative nature . Cant deny that the cynic in me would have also suspected Michinoko Ltd -the venture capitalists and not the bank{ Michinoku } - picked up their latest million during that dip to 13.75 had the date of their purchase not pre-dated and thus contradicted this theory. / .O/T ... lncidentally, Roly are you attending AGM in darkest Wales ? For one i shall definately be going. /...still weary of anywhere north of Hampstead ,of course,but shall look forward to update/s and vibes from JW. ......SS- Have read somewhere a couple of postings suggesting Schlumberger involved in rectifying mudweight prob but not in appraisal procedure -albeit this would seem common sense . Perhaps i am totally wrong but cannot find any definitive evidence to substantiate this factor among my notes . l do know-We didnt use them in previous assessments.

You can stillbook a room at the St Mellions hotel in Cardiff plus breakfast for about 81 - direct through their website

cheers for info BH -indebted -- subject to availability i shall avail myself of this oppertunity

No "J" i wont be going , if i had as many shares in this as you maybe i would have.

I believe that when the AGM end's you are required to stand and sing " Land Of My Father's " in Welsh , and you know what happen when John Redwood tried that ...

There's a lot coming to visit me in Cardiff!!!
Might have to have a larger room at this
rate.
There is a free bar for those that turn up early,
Trotts has donated 100 he won off the Dark
Horse on a bet!

SS, I suppose if there were to be an independent appraisal it would come from them. Something to confirm current estimates would be good.
Surely RBCCM would be doing a report for their clients also.

BWD, You'd think so - it looks like early next week there will be an update. Not before time but there was apparently a 9 day delay on the delivery of some equipment - as for the rest of the overrrun maybe they will blame it on the weather - it has been very wet down there.

What' the time and date of the AGM ? please.

10am August 4th

August 4th ? from the way their were talking on here I thought it was next week.

I will be there.

It appears that from what people are saying fenix is now in good condition.

I was told by two industry geologists (who have no interest in AMER) that the remedial work at Iguasa was not a problem. The only difficulty was logistics - getting equipment, chemicals etc on site.
I have never doubted that the mud issue would be overcome but I am surprised by the timescale. Bad weather would certainly explain things. Thanks SS.

I think TFC said 3 weeks ago the remedial work at Iguasa was not a problem

Did he? Jolly good!

The placing announcement at the end of April comfirms as much in any event. Let's see what they have to say has happened since.

being a trader at heart ive been rather preoccupied with exploiting BP s short term swings and general downturn at the moment to be following every piddling AMER trade- as i know patience is the key to cracking this nut .The news everyone has been suggesting will come on such and such a day and proven wrong will come when its good and ready. lt always does . comes out of the blue that is .. But was rather surprised at lack of comment on the 8m negotiated buy trade at 16p yesterday .Does that not tell you something ? lm very confident-but obviously someone is a lot more confident than me . lncidentally i am in this for a couple of years - Columbia is one of big oils future plays . lm not making a high volume x 30% percentages play here and selling out for a quick 50k only to watch others make millions a year or so down the road - i did all that years ago and it bored me even then. ..looking to hit this one right back over the bowlers head and over the ropes........not meaning to sound conceited here- its juste l know a good thing when i stumble upon it

Tfc

It was debated on another board but general consensus was it was filled over the last week when price rose from 14.5 to 17p.
Obviously reason that last couple of days 500k was stuck on the offer to stop price running too high.
See the pi's once again have been stitched up in favour of the big inst's, as you would say c'est la vie!!!!!!!

Another 2 m buy today

TFC - yes, I saw it and took the same view as Nasdaq.
For a variety of reasons, I'm more relaxed about news updates than previously.
One of them was reminding myself about how pessimistic everyone was this time last year when the sp was sub 3p. I now tend to concentrate on the view six to 12 months from now - and the daily fluctuations seem much less important.