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.

Amer got mentioned in Small cap mag and a well-known tipster has put 60p on it, maybe one and same. Hostage thing helps.
JW keeps a very low profile there. He speaks fluent Spanish and rides a motorbike.
He is well in with the local mayor/authorities for whom he has helped develop schools and, of course, the company have built roads and bridges which assists not just us but the military who are there in droves to get around and scare the guerrillas off.
JW is a man of influence in Colombia now.
I anxiously await to hear news of his radical plans for doubling production/delivery.

The Market's reaction to today's disclosure of an extensive drilling programme over the rest of this year is pathetic even though the share volume is weirdly low. Even if a discount is applied to the possible oil flows from the next 10 wells (difficult to justify a reason for actually doing that, but conservatism pays off sometimes) then a more than doubling of production during the course of this year looks to be virtually 'a given.' Add in the potential for other developments at Fenix and in Paraguay (where drilling into the same structure on the other side of the country border has produced oil flows per well which exceed Amerisur's current daily Colombian production from all of its producing wells) and Amerisur at its current level looks vulnerable to losing its independence unless the Market wakes up to the company's potential and re-rates the shares accordingly.
If all of that sounds too bullish for some visitors here, I would like to know why they think otherwise.

Sharesure: I agree 100 per cent. But I suspect traders are (wrongly) hung up on the 5000bopd target and/or are waiting to see what's in the presentation.
For me, the 5k a day is almost irrelevant because the cause of the hold-up is external and soon to be resolved in any event.
There's every reason to be bullish but this morning's RNS was a tad on the minimalist side!

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SS

Key to the future of the sp is the reserves update.

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blackdown - the reserves figure will be based on data from the wells drilled before the y/e and not on the current position. For that reason, I am not expecting anything sensational.

But there is some really very interesting stuff in the presentation. I'm guessing it has just passed by a lot of people because it hasn't been spelled out in an RNS. Maybe that's the idea. JW is a dab hand that these presentations so I have no doubt the right information will reach the intended targets.

Anyway, all looking very good with a very ambitious programme for this year. Once the pipeline issues have been sorted, they can crank things up a bit. Later this month, it would seem.

Looks like the same old game - trying to weed out a few more T traders before news is released. The next RNS should be so close to being issued; doubtful that it is anything other than a confirmation that Amer has made good progress towards this year's targets.

It's on low volume ss, results from Platanillo-10 and Platanillo-1 due soon, RNS from 6th Feb stated results from these 2 wells would be due in a few weeks, so yes news very close.
2517

Anyone close to Giles H at Malborough? Maybe he knows?

GH says 'All is well and on track' !

The boys are in Bogota!

The market too is in "deep bogata" this morning !!

The Berlusconi effect eh? Not affected Amer too much. The US gets a cold eh and we get pnuetumayo.

Investec, Oriel, RBC, Marlborough plus various analysts just returned from a flying visit to Bog; guests of aforesaid co. They did not go to Put! The 'Note', from RBC, I believe, is a result of what was heard. I expect an 'official' update soon. The visitors are very pleased with what they heard, allegedly

Positive RBC note out!

Where?

Only the in-crowd have seen it. Cannot C&P. Good stuff. All you would want to hear. A little ooo imo giving the big-timers a head's up before the minions!

If you have an email??

Up..., I would be grateful for a copy. Are you able to email it via moneyam contact list?

I sent one to you at address I have. Is it still the same? @onetel.com?