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.

B/D will do; I would have liked some production figures and reserve figures to make the update more useful to new comers. Time we had that for Platinillo.

Agreed

expect we will get an update before Xmas

Not much I get right these days but happy with my actions on this!

Been holding/watching for 2/3 years at 11p when Chaco and seen my investment plummet. The continual push-up in the sp over the past months gave me the opportunity to get my investment back over the last few days. The MM's have tried to make it look that this is going to keep rising but any analysis of the chart says all the good news is priced in and the sp is heading southwards.

Good luck to those that hold but I'm more than glad to be out for now and shall reassess when market conditions for these tiddler AIM stocks improve.

dealer - well done if you have managed to make a few quid. However, I'm not so sure that the "good news is priced in" - we don't even know what it is yet! Certainly, whoever bought 8million at 11p last week is not expecting the sp to head south. Nor am I. The trend is up.

As for today's RNS that looks to be all about the total number of Amerisur shares in issue now being slightly higher which has pushed a 3% holder down to just under 3%. A non event really, but interesting to see the rate of this holder's share buys and the dates.
I don't think that the results of the recent drilling are priced in either since all that has been announced is the location of a number of hydrocarbon bearing strata which now need investigation and testing.

I must have mis-understood (nothing unusual there then) I thought there was an increase in shareholding from 2.98% to 7.63%.
2517

SS, the holding RNS says he now owns over 7.5%
63 Million shares, been a bit slow informing the
company though!!

Apologies, re-read it and agree with you both. I had thought that the remainder did not have voting rights - obviously read it too quickly. Let's hope Rex Harbour realise the longer term potential and do not sell out to cheaply to anyone else - it's a sizeable platform.

Rexy has bought another 4.4 million trigger reached yesterday.
Good to see the company up to speed on this one.

If its good enough for Rexy its good enough for me.

Good to see top notch PI's getting involved with AMER.
Very happy with my position at this time.

I agree, but it would be good to get a Plat update before too long.

They may update with the interims this month.
2517

next monday

G.C. stepping down from Pure Wafer. ( Presumably to concentrate on AMER ! )

Interims out - they make an interesting read. Plenty to look forward to in 2010.

Cant find anything really negative in the read, All positive going into 2010. Gonna be a good year in amer history. imvho

what's this mention of 900 million barrels......or is that his guesswork at the moment ? Interesting figure to pluck out tho

It's been mentioned before, together with the unrisked element for the other field. Paraguay looks to have the potential to convert AMER into something quite interesting.

Tudwick, have answered your queery on 3i board.

Nothing really new in the prelims then.
Good solid company now with cash in the Bank
and Capex being covered by Oil production,
what more could we ask for. just sit back n relax now
knowing that this is going to grow n grow. QED

M