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.

Bwd,

What does P2 mean?

Blackdown:
P1 = proven reserves
P2 = probable
P3 = possible.

Thanks

I am still in blackdown and watching events unfold very very closely.

If everything goes to plan.td will have been reached via the horizontal 45degree drill in a day or two.

So far a very complicated drilling has gone extremely well,as shown from the recent news as well as the "faces" putting themmselves on the website. They must be extremely confident to do this.The alternative is big time egg on face which Mr Clarke is not the kind of business man to have to contemplate .

All in all the word is positive .The question is will the numbers make it a company changing discovery?

A very nervous and anxious few days to come .

S,

Thanks and noted.

bwd Thanks re P2 figure- that's better than I had thought it could be. I am hoping to get some more info on the Emerald deal since I wouldn't be surprised if we were headed the same way if the drilling is positive.Just hope that they split off Paraguay into a separate entity first giving us another long term prospect as well.

Sharesure, probably being ignorant here, but when you say you hope `they split off into a seperate entity,' how does this work ? As current holders of amer.l, would we still hold interests in these assets were they to seperate them out, or would it mean having to buy further shares in a new company set up ?

Possible 9/9.5p close today.

Well the poster who appeared to be so positive about this closing price on 3i was wrong.
Close but wrong-maybe tomorrow with a fair wind.

A large late sell off, is this profit taking or someone who knows something we don't?

Its been a long slog back up from the lows,sivad the poster on 3i was spot on it said 8.75.
I am selling half my holding @11,if we get there.

cmp: While reported as a sell it could be otherwise in view of the recorded time (delayed trade).
In fact it may well have been this "buy" which supported the s.p. today.

Tudwick, you end up owning shares in both entities. It may be a good move against this company being taken out cheaply.

Many thanks for replying Sharesure, much appreciated.

capetown-why sell at 11 why not 21?

Anyhting can happen between now and the next RNS from the company.

So many people have such high hopes after the last release that the momentum is gathering pace.

I for one would not be looking to sell a single share until Amerisur are a mid sized oil producer with good revenue flows and further exploration licences.

This is just the beginning of what has been a real slog.

Noone underestimated the size of the task. Some were very critical at the slowness of progress. We are one RNS away from what could be a very very godd period of growth for this company.

Stay long.

Daily Express today: "South-America focused Amerisur Resources flowed .5p north to 8.88p in anticipation of a positive drilling update at its Fenix project in Colombia."

Sivad,the only reason i will sell half @11p is because i have far too many of these in my portfolio,i averaged down over time and selling at 11p gives me 150k free shares,i may even be tempted before 11p actually.
I agree with the high hopes,which is why i invested years ago.
THANK YOU for your advice but i will not be swayed this time.

SIVAD,
Must also add that your posts and those from Shareshure have kept me going when at times it seemed i was going to loose it all,not going there again.

Noted your comments and I really hope that luck and fortune are on your side.
We really are at a crucial stage of Amers development and the pending news will IMO be the catalyst that will send us up.

Thanks Sivad
Hope you are correct on this one,then i have nothing to worry about as i will be taking out my origional investment and the rest will be pure profit,not falling for the fear and greed which had cost me in the early days.
Two good large buys end of trade 800k and 700k,the buyer is still soaking up the sells.