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.

Agree with Barry's 'take' on the Presentation - he took many more notes than I did! John Wardle was his usual confident and impressive self and, as usual, you get the impression that he knows and expects much more to happen in terms of proven reserves and daily production than he can let on.
The Chairman was unfortunately, and as usual, his usual self. Looked liked he had spent the night asleep in a hedge, which doesn't really matter since the impression is that it is the work that the rest of the Board do that matters more to us as shareholders. Maybe I am biased but I am not alone in my views. It wasn't worth asking him any meaningful questions such as is there any truth in the comment that the Paraguayan assets may be hived off into a separate entity. He couldn't and wouldn't answer that.
In conclusion, it all looks like steady sp growth can be expected from now on, barring external issues playing a part (both positively or negatively) - maybe that's preferable, rather than having volatility which just attracts short term trading of the stock.
AGM's seldom live up to the expectation of there being any revelatory news and this was no exception. Just reassuring that quarter by quarter significant progress looks likely to be made and reported.

.

a lot of small buys coming in

They look meaningless to me. This company must be doing things which should be RNS'd - particularly if they are drilling the number of wells that they stated they would.

From rns 14/05/13
Total field production capacity estimated at 7,500 bopd before the contribution of Platanillo-11 and Alea-1R ST1.

The well Platanillo-11, located on Platform 5 South (5S) has been drilled to a total depth of 8,733ft MD using the Latco-01 drilling rig. Platanillo-11 is a directional well, deviated approximately 1,697 ft south east of platform 5S. The well encountered an interval of 95 ft Gross, 49.5 ft net indicated pay in the U sand and 34 ft gross, 17 ft net in the T sand. As predicted by our geophysical model, the N sand was not well developed at this point. It is expected the well will be completed and placed on production during May.

Is there a delay with production on well Platanillo-11? It may account for the recent weakness in the sp.
2517

ss
are you still positive about the long term?

Very positive. Short term weakness seems odd but I have just acquired some more shares over the last few days to take advantage of that.

thanks sharesure

Nudge, nudge. Wink, wink!

Not impressed with the share price rise. Is it ever going to go up!!!!!

SP looks nicely and suitably progressive to me and usually picks up at the end of the day when "someone" wipes up the daily sells after a goodish RNS

The underlying fundamentals look to be building up well; the sp will catch up at some stage and likely as not will then overshoot, leaving smaller holders able to sell out if they wish to. I will stick with it until there is a stake build up in preparation for a bid.

Over 7k bopd now (constrained), have an idea this is going to grow into a decent size co. in time.
2517

Looks like someone wants out with the large sells today

Sorting stuff from the 52m trades a couple of weeks back imo. See what tomorrow brings?
$300m pa revenue now and people say there are sellers. I don't think so but I do think there is some funny business going on!

Wait for the RNS to say who owns what and who sold off a few!

Goldman Sachs raised it's TP to 82p from 65p on 4th June 13
2517

sharesure
are we still ok or do we need an RNS about transport to get back up?

Whilst AMER dropped back with the recent market shake out, they have not participated in the market recovery, I would have thought current production rates enough to regain at least some of AMER's recent 30%ish sp fall.
2517

The sp has been recovering slightly in recent days, ahead of todays encouraging rns.
2517

Investec reiterates with TP of 73p
2517