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, Yesterday's 2.6m late announcement trade at 16p seems to suggest that someone is scooping up what they can without being so aggressive that they shift the sp too much. I was surprised not to see an announcement this morning given yesterday's volume - it must be close to the time when more Fenix news is available.

SS. Looking forward to the updates. Plenty to come. As well as Fenix, I'm interested to see what they say about the poss upgrade of Platanillo, plus cranking up production.

I posted this on the 2 other main boards but in case there are a few who only visit here then its fair to put it here as well.

As we approach the testing period of Fenix, I have compiled a list of important points, imo, for the whole of the Company. This may benifit any new investors and can be used as a quick reference.

Platanillo:

Structure evaluation report due
end Feb 2010. Will show significant upside in the block.
Geotechnical study due in Feb, to incorporate the Extension of the Victor Hugo Field into Plat Block! ( my interpretation)
This minimum programme for 2010 consists of producing the wells at varying levels of injection pressure.

Fenix:

2nd phase licence expires 21th Feb
355ft of Target sands.
35API oil from deepest sands, no water or Sulphur, ie light sweet crude.
400BOPD initial natural flow rates
expected.
2nd well to be drilled immediately after testing Iguasa
Upper sands derisk of 2nd prospect at Cashira


Paraguay:

Geochemical survey results in February.
2d survey in 2010
Drill in 2011


The above is all factual and taken from Company releases.

Moneylender, apart from ADVFN what do you consider to be the other main board?

iii

ok thanks razmun, not tried them

Frampton 3i's prices are not reliable imo you are best off just reading the boards there and using either am or a dvfn for prices/Level2

M

Thanks ML

This doesn't look good, sp down 15% atm.
2517

Amazing how the pump and dump brigade have gone quiet!

Was bound to go back down after being totally overbought and has been a good short.

This may have more to do with a small arguement over the strike price of the Board's recent options. Nothing much seems to have changed over the company's prospects if you read the latest Wm de Broe view.

SS,

How do you access the W de B stuff?

Probably a call to them will get you one. It was part of a round up of a number of their favourite stocks, but I have always been pretty sure that they get quite a good steer because of the sizeable holdings they represent. From memory the main point in the summary, beyond what we already know, was the confidence in the structures drilled so far in Colombia extending down to the southern border with Ecuador where there is already a large producing field.
This month is meant to bring a fair amount of newsflow although quite when has always been the problem with Amerisur. Usually the ANH gets blamed for being the hold up because it supposedly sanctions all news released.

dealerdear - 01 Feb 2010 13:27 - 1730 of 1733
Amazing how the pump and dump brigade have gone quiet!

Was bound to go back down after being totally overbought and has been a good short.

WHAT UTTER C**P-SOUND FUNDAMENTALS WILL CARRY THIS STOCK MUCH MUCH HIGHER.
SO ITS HAD A POOR DAY-SO WHAT?? NOTHING HAS CHANGED-EXECEPT THE OWNERSHIP OF A FEW SHARES.
WATCH THE ACTION LATER THIS MONTH AND 13P WILL BE A DISTANT MEMORY.

Balance of sells and buys does not anyway justify a 15% reduction in SP

I wonder how many times you have posted on here before yuff?

More like duff this share the past 2 mnths. Hit 17p, overbought and now down to 13p. It's quite simple really. As I say, it has been a great short of a very overbought stock. Any chartist will tell you that!

And now it looks to be over sold; so what, although it's been a welcome opportunity for getting a few more

Interesting piece in the Times today re AMER.

Rumour of the day

Amerisur Resources, which is drilling for oil and gas in Colombia, fell p to 14p amid rumours of a dry well. However, these are thought to be wide of the mark. The company pointed out that testing of its Iguasa-1 well is not due to start until this week And early signs, Amerisur insisted, were very promising.

Rex has topped up then!!