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.

Agreed-thats what makes it all the stranger-that small trades mm's move down and on millions-no move
Rollon AGM.

sivad,

I wondered what your thoughts were, I know you were expecting news rather earlier than this, I assume you remain confident.

I cannot understand those large sells today @ 7p, the 2M did not move it down though, why sell at this time unless it is forced, the accounts seem ok and therefore I cannot see why people are selling, I guess the time taken to come up with the expected news causes people to sell especially those who may need to close a T trade.

sivad, are you going to AGM in Cardiff?
Who else intends to come?

M

ADVFN not working at the moment.

ADVFN hosting site down due to power outage - no realistic time for resumtion - but facilities are being tested as we speak - expect it to be back tomorrow sometime

Hi stewart-all very odd-general market malaise-news that was expected was already known and the news that I.i was expecting is still in the drawers at Amer HQ.

I am still buying as are my colleagues.
One day people will realise exactly what this share has to offer-the potential to be the largest AIM oill producing stock.
Patience is needed.
The stock market today is a nervous place to be.
the downside here is so limited as to be negligible.

I believe pre AGM we will be back at 9p+

May go to the AGM ML.

I have booked my bed ML - hope to see you there ?

Sivad,

Totally agree with your post. Have been in this stock ever since Chaco was created from the ashes of GMS. This is one to accumulate.

Who cares if it takes a few more months for the news to come out. I think that GC is a tough cookie who is prepared to take a gamble and the patient will be well rewarded.

'the potential to be the largest AIM oil producing stock.' Bigger than SIBIR, if that's the case then I shall hang on, but like the present government most oil minnows talk a good game, but are sadly lacking in substance. On reflection AMER do not even talk.
2517

I cannot quite square the persistent selling and weak sp with the rumours about how good this is going to be. Something doesn't add up - either the market has got Amer totally wrong or the lack of news but plenty of rumour is someone misleading shareholders. I am still giving this Board the benefit of the doubt that they have something fairly spectacular in the offing but it is an act of faith only as they do little to substantiate things and as for the bungling options RNS room to doubt their competence.

One scenario that squares the circle is the persistent sellers being the ones who are also creating the rumours - let's hope not, or we'll all have been taken for mugs.

SD
All the rumours seem to be confirming things that are in progress and should have happened already. We need the management to get on and confirm everything ASAP.

stosckdog, that idea has occured to me as well. Not everything
fits as well as it should here!!

M

bodeng - in my experience rumours don't confirm things, facts confirm rumours!

Things are coming together. Fact.

Fact is - there are not a lot of facts to give the market confidence. Only when we get an RNS stating flow volumes etal will anyone but speculators listen

bhunt, dont expect flow volumes much before Xmas mate.

M

SS - sometimes I do question BC's judgement here. Was the appointment of a non-exec chairman (part-time) the right thing to do? Very frustrated after 3 years holding that I am down considerably on paper, yet I cant deny the fact that we have obvious potential and have made decent progress since when I initially bought CHP.

ML - as operator of Plat, I would hope we will get regular operational updates from here on in, what exactly have they been doing in the last 6 months since discovery?

Robbie, I suspect that BC knows this company inside out but has just got over-optimistic on timing (hopefully that is in the past now as I believe the company assurances for updates in July will not be allowed to drift). I am sure that BC, like us, will not have thought much of the stupid RNS concerning director's share options, particularly at the current sp. Where was the incentive to make them do better?
If Amerisur turns rumour into fact, on the current oil/barrel price the sp should be capable of multi-bagging fairly quickly from here once figures are released in an RNS. Anyone else think that for each 1,000 barrels production the sp should rise by 14p? As for rserves in the ground, these should be worth about 1p on the sp/1 mb even with a heavy discount for quality and risks?