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.

Beau,

I totally agree with a lot of what you say. Anybody who buys/sells based on their reading of BBs needs their head testing. But I don't subscribe to the philiosophy of some posters who trash stocks for the sake of it, and often with little or no knowledge of the company they have taken against.

Unfortunately for this stock, the price got way ahead of itself under the previous management, which seemed to leak 'news' that turned out to be non-news. The current team appears to be much more savvy; however, the speed at which it can deliver is heavily influenced by the local bureaucracies and working practices. Whatever its faults, you can't blame the management for this.

It's been a long haul and it is understandable that many have sold out along the way. In my opinion though, there is a much better chance of achieving a worthwhile return over the next year or so, now that the company has created a sustainable business model, which should enable it to prospect further without tapping shareholders for additional funds.

Beau, you should have come to Cardiff last week.
Firstly it would hgave been good to have a beer and
secondly you could have had a chance to question the
boys themselves. I did and am really happy, we will
be producing this year and will be cash positve. We
will have 6m in the bank and a well in Fenix, wet or dry!!!
From here on in we can only grow, where is the risk?
You know I was extremly negative last year but in fairness I see
very little down side from here, even with a duster at Fenix!!!!

M

ML

Yes mate, I would have liked to have checked out if the rumours of you being a lightweight at the bar were true...LOL.

Anyway, the problem I have is that we have heard all of this before. Many share this view and are just resigned to sitting in the wings waiting for Plat to fire up so we can see the level of production achieved.

Taking into account how long these guys take to achieve goals and communicate milestones and how expert they are at arriving at excuses (with all the rampers defending and justifying every failure or delay), it is hard for me to get too excited about Fenix even if progress kick starts the project on the ground in the not too distant future. Paraguay is literally years away.

Both you and I took the full brunt of the fully coordinated ramping squad for some time, who, let us be brutally honest here, came out with, and continue to come out with, complete and utter rubbish that at best is hopeful over-optimism, at worst misleading horse dung designed to satisfy short term spread betting. How can this be proven, well the sp for one and the fact that producer status is still to be earned has it not, their raison detre?

I can hold my head up high as Ive never been required to serve any agenda and base my comments on what I see going on in an honest and no nonsense way, and to date, and regardless of my yobbish tendencies, I have called this right on far more occasions than all those who pretend to be the experts, something I am far away from ever being. So I can look on, chortle a bit, comment as I see fit, but in reality can only wait for progress, real progress, like everyone else so we can assess the impact it has on each of our own shareholder value, something that has been dismally caned since Clarke took over.

AIMHO

Beau

Beau

I know what the history here has been like, but lets look at the current facts.

1. Alea testing is complete and they are about to go into production soon, lets say by end of Sept, 6 weeks max. Income from this will be $4M pa min

2. Fenix about to be spudded, again lets give them some leeway, say by end of Nov we will have a result, good or bad, a result.

3. We have 6M in the bank and an income of $4M

I wont even mention Paraguay as I agree it is some way off, however if you do the sums at only 4% risk it does add up to substantial values.

Where is the down side from this apart from Historical failures and un materialised ramping by BB's. OK we have suffered some what from slow gov dept, but this management have always delivered in the end.

M

ML

The current facts mate still demonstrate nothing has really changed. The AGM outcome and reports hardly influenced market sentiment which speaks volumes.

Alea - still to begin production.
Fenix - still to be spudded.
Paraguay - forget it.
Board treatment of long term shareholders - excuse after excuse, poor updates and shareholder value destroyed. Fact.

As soon as some more promising activities are reported and a more professional attitude demonstrated by the board towards shareholders is witnessed, inevitably sentiment will no doubt change. We would all welcome that. Let's see what happens between now and Xmas. I'm in no position to really know what will happen, so I'll keep as open a mind as possibly, sadly influenced by history it has to be said. Nothing would give me greater pleasure than seeing far more progressive and profitable outcomes than we have to date.

AIMHO

Beau


bd

The broken down record you speak of on the dark side is a figment of your imagination me old son, guess the need to massage your mate's ego was too much to resist. The real broken down record is years of the same ol' guff from all the usual suspects, scared to death to read anything realistic, desperate to talk up this dog month after month when in reality and much to all your frustrations the key points I raised above still happens to be fact.

But you carry on with the digs. I can take it. I get more enjoyment reading the same cut and pastes week after week than you can imagine, because I've seen it all before, with the added bonus of reading one off classics like 'I'm averaging 2.5p.'........just superb.

I really do hope it comes good for you. One day you will be right, but when you are, a long line of shattered dreams and disappointed former shareholders will be left in your wake after years of this hype, garbage and lies that doesn't change one iota from one year to the next......as the facts demonstrate.

Do run along now.

Beau/monty333 (banned by the ironman for a contrarian realistic view)

ZZZZZZZzzzzzzzzzzzzzzzzzz.................................

LMFAO

Yawns, typically, directed at the wrong person, but you know that but daren't face reality.

Nothing has changed in a year, the three factors above, still sadly remain fact. No oil despite producer status, almost guaranteed news will trickle out months late on Fenix and Paraguay, well pointless even talking about that. Exactly the same position as last year. As usual, ramping and hype not matched by performance and progress.

Run alongnow back to that pathetic little thread, devoid of reason, bereft of honesty, ignorant of fact, full of horse dung.

Beau

B62
good on ya for speaking your mind. do you know anything about pharmas? seems they have the same ability to induce such feelings of support in shareholders. how do they do it? history is often a good guide as to the truth of such matters. just my opinion as always.
regards
jkd

jkd

Most think I'm the villain. They are wrong.

Pharma's not my bag, sorry.

I think I can answer generally though; I am not so sure that 'companies' do too much to induce such feelings, it generally comes intrinsically from these threads where investors, bull or bear, use them to shift sentiment to serve their own agenda, often lying and misleading others in an attempt to stave off desperation or force the issue, acts generally associated with short term spread betters. Any comments here, including my own I dare say, should be treated with extreme caution and very often have no bearing on the 'investment' itself. Amer is a classic example, where the supposed in the know brigade have spouted the same hopeful bile year after year and defend vigorously any attempt to face reality, question failure or suspect indolence. These threads go back years and you could open up any post at any point in the last few years and you will see the same posters, saying the same thing, promising the same hype, defending the same players, talking for the company, justifying anything and everything good or bad, claiming they are in profit, forecasting a significantly higher sp, this time next year garbage, claims of topping up again, averaging down, best buying opportunity at the nth attempt, over and over and over again. Meanwhile, anyone with a brain, offers a more cautious approach, considers history as at least one indicator and ignores most of the trash, because that is what it is, mostly trash. And as I've said before, the amazing thing is the not so shrewd investors believe every word these guys say because they have no choice but to believe it.

Alas, I'm sure a few yawns will appear from the same individuals, so best end there.

Beau

thanks B62
you seem to have summed it up very well.
regards
jkd

http://www.moneyam.com/InvestorsRoom/posts.php?tid=14368#lastread

Beau62,
I share your frustration with AMER,i have a feeling the last hour of trading may well be a sign that it will soon be over,one way or another.

Beau something for you to chew over, whilst we wait for news SOON!!!!

I once quoted 50p as a target for 2012 and IJ has since written
that figure in stone!!! since talking to one ot two directors 2 weeks ago
I have now revised it!!!!!!!!

Just do the sums yourself and see what figures you come up with!!

These are taken from someone at another board, with a bit of luck and a fair wind
they are not too far out of the way!!!


Here are some estimates taken from recent reports.
Colombia: Platanillo 120 MMBO
Colombia: Felix 56-305 MMBO
Paraguay: San Pedro 708-960 MMbls
Paraguay: Curupayty 250MMbls

Total Colombia 176-425 MMBO
Total Paraguay 958-1210 MMbls
Total 1.1-1.6 billion barrels

c
you may well be right. may i suggest this is only applicable if trading short term. if trading short /medium term then maybe not. if investing long term then a last hour will not matter.its a buy above 10.but not until, just my opinion.
regards
jkd

jkd.i have held these for 3+years.

c
so what? it dont affect or change my comments and view. please DYOR
i am wrong more often than i am right.
regards and good luck to you
jkd

hi c
sorry if i sound a bit harsh. lots of other stuff on this stock so please DYOR
regards and good luck
jkd

jkd,i always do my own research,was responding to your post which intimated that i was looking at amer as a one hour or a day trade.Thanks for your input .
C.

Calling Beau, come in Beau, over!

No news,my guess is the jungle drums can be heard by current buyers,very quiet where i am,perhaps a tourist reported that he/she got covered in oil whilst trecking!.