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.

Come on Uponthelowdown - cheer us up with a bit more of your optimism. I was looking forward to October, but it's been grim so far.

No problems Blackdown. Expecting the update and more very soon.
I think they may want to tell us about Fenix and the JV in addition to the improved flow rates at Alea and Plat.
The state of the markets are not helping but some are indicating we are through it. A couple of positive blue days may well influence thinking at board level.
I won't say I am immune to recent happenings in the market.

A muted response to the news issued today.

I think in these markets a muted responce is all we can expect for now,but its good news and a step in te right direction.

Very disappointed with todays results. This will go down
now without further news!!

conflict of opinions between you two.......time will tell

It wouldn't be an amer rns if the sp didn't go down following a good announcement. All looks to be slowly getting in place - 100% of Platinillo by xmas? pumps on and open chokes, and then let's see who's right about this stock. Moving from explorer to producer (even if it's only a small start) is a significant milestone.

If people are disappointed with today's news, then they may have been expecting something different. It could be that their expectations were wrong, rather than the fault lying with anything the company has said.

To me, it looks like another step on the way to being able to fund exploration & further acquisitions from cashflow & existing resources. This has to be good news.

Well it certainly isn't bad news.

The Market thinks it is, and thats all that matters!!!

Everything is being marked down - we're over 180 points off. Trashy times.

Significant director buying - interesting.

A no brainer tho @2.9p in my opinion tho....can't lose (surely)

Comment, click HERE

D Express: South America-focused oil and gas explorer Amerisur flowed .5p north to 3.38p on the back of boardroom buying.

Let's hope that the northward flow continues.

UpontheLD,

October didn't turn out to be quite as good as predicted. Is this a case of Colombian bureaucracy, or other factors causing delays to progress/the issue of news by the company?

blackdown,
It would seem that the seller of the 1 mill and 500k trade are dissapointed with lack of progress too.
Still holding but not selling at this price.

No problems BD other than they're taking their own sweet time to update us.
I am confident we will hear about flow rates at very least in the near future, possibly revelation of JV for Fenix, and finally sort out the strongly rumoured acquisition of the ECO 40% share of Platanillo.
It is all taking it's toll, I know, but nothing much is happening to schedule in recent times.

Thanks for the update.