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.

No. Complete mystery although there's a fair chance they are connected to Giles Clarke in some way as they also had a sizeable holding in Pure Wafer.

bwd, big mates of GC apparently.

Thanks guys. Was just curious but I'm going to the AGM so maybe I'll hear more about them there.
Meanwhile, am a little surprised that we are still in this 13p range...and not back to near the placing price at least. Perhaps it will drift around this level until there is clarity on Fenix etc.

From what I hear the AGM will be a good news event - if the RNS does not come sooner. I just wouldn't bet the house on when in view of previous false dawns. What seems more certain is that the delay on news is for good reasons - and on that front this company has not been slow in announcing disappointments when it has had to eg the results of the Primavera drilling a few years ago.

SS,

I am sure that we will see evidence of the imminence of good news via increased trading volumes. I don't know how folks find out in advance, but they always seem to.

ss

The only good news we are likely to get, pre agm, involves iguasa and that is down to schlumberger and if they are successful.

bd

250k in buys in last 20 mins, not much but a lot compared to last few weeks.

If anyone is going to the AGM would they please ask the chairman why he believes it is in our interests to suppress newsflow. Pretty much every other oil exploration company maintains a steady release of information. Given that there is still a credibility gap with this board, with the exception of John Wardle who has at least shown in the past that he knows about building up a successful exploration company, I think that the chairman still has alot to prove. When you see the sp of Sth Atlantic explorers skyrocket when they have just discovered a few petrol fumes, and in deep substrata and in deep and disputed waters it just shows what the City thinks of Amerisur. I am staying in because I believe that the assets are significant, not because I have much confidence in the UK mgt. I am sure plenty will tell me what a genius this board has at their helm - the sp doesn't bear that out in the opinion of many that matter.

SS,

I do agree that an interim statement re Iguasa testing would have been helpful. After all, we were told back in March/April that testing would start then, so clearly the process has taken much longer than anticipated (whatever the reason).

And there was me thinking you were warming to them, Sharesure!

I would guess that news flow (or lack of) will be the first line of questioning at the AGM. I agree with you about JW. He's an oil man with a good reputation. He's driving the company forward with ambitious projects in South America. I have an open mind about GC - he may have influences elsewhere - but the sp undoubtably suffers during these long periods of radio silence.

Re the South Atlantic explorers: I could not agree more. RKH is helped by being a sexy news story and, let's face it, AMER's share price is never going to be discussed on the 10 o'clock news. But looking at the numbers this should be a much, much better bet. Unfortunately, the PR here is non-exitistent.

bwd, I don't think that I will ever revise that opinion - or need to - even if (or when?) Amer gets the re-rating that its assets should provide. I suspect there are plenty of folk involved in the ECB who take a similar view. I just wish he would concentrate his time on the ECB and move out of our way so that we can get someone as Chairman with much more relevant experience. And I am not impressed with a 0.75p rise over the last 24 hours - we still aren't getting anything like the market rating that being an oil producer should bring with it. Blame the board for that - no one else. I don't mind them not being PR aware but just not communicating information is inexcusable in this sector.

A bit perkier today.

and the volume is getting better. One City broker seems to think that Amer may be a bid target - not so that someone can pick up their talented UK mgt though - more for the assets which rival several Sth Atlantic explorers albeit Amer's are on dry land (rainy season aside) and at a shallower depth. Any bid ought to be at a much higher sp level but while this mgt fails to publish its progress they risk the possibility of the company being taken out too cheaply.

Sharesure re your post July 21. I hear what you say.

I trust RBCCM will be represented at the AGM. I'll be interested to see what they are doing to flag up this stock.

Interesting thought SS. I would have thought that any bidder would wait for a while to see how things go with Fenix and Plat.

Any bidder will probably know, good information for a selected few...

That seems to be the way of things.

This morning's sp rise seems to bear that out. Can this mgt hold off until the AGM before giving out the information they apparently have?

But why wait for the AGM?

So that someone can stroke their ego in front of some ever so grateful shareholders who have been inconvenienced by holding the AGM in Wales - and even earlier than on previous occasions. My views don't change! When are we going to trade GC in for someone more suited to our needs? Let's hope that if a bid emerges at some stage, the bidder's UK mgt will replace and enhance the board.