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.

I guess we will get an RNS tomorrow - something must have leaked for the price to be this high

Well I am disappointed - no RNS.

Daily Express:

steady as she goes.

All time highs for the sp and not one comment.
News expected on all fronts imminently.

Nas: yes, it's very exciting. The company is now entering a new phase in its development. An announcement tomorrow? Who knows? - but this week surely.

Well I hear that the time is very very close for major announcement. I am topping up when I am able to as it is sheer folly to be out of a stock that could easily treble from its current share price within a matter of months.

Sivad,

You sound confident and I very much hope that you are right.

sivad

I think news would have to be fanatastic on all fronts and that maybe a little optimistic, but 30's is very possible if fenix is a sgood as they think it might be along with the major upside at Alea.

.

On the principle that bad news always travels faster than good news, the wait for the test results should be worth it. The expectations which I suspect most are familiar with on here should be good enough for sivad's hopes plus a bit more in my view. Even so, having some news this week would be welcome - just hope that we are not stuck waiting on the ANH for the Colombian part of the news.

Good luck with this one.

20p happy Days. Hope it holds til eod. Good news before end of week me thinks!!

pretty small volumes so far. 20p is great.

Sharesure,I go along with Sivad on this one. Not seen him for a while but his comments from before seem to have borne fruit.

If we treble from her that takes us to 60p+ and you say we could even exceed that point.

At 20p now that sounds optimistic but I have been proved to be incorrect with my valuations on more than one ocassion.

When the market speaks we should listen. Right now it is saying something without any firm news. That in itself speaks volumes.

The buy on rumour sell on news factor does not apply in this instance.

Small volume but mostly buys

Yuff, I haven't made a particular prediction on sp but still reckon on 0.75p per million barrels of reserves may be a good yardstick if and when the market pays for reserves at value.
Think tomorrow may be an interesting day although difficult to be at all certain about whether we get all the news there could be in one hit.

From the Times:

Amerisur Resources, which is looking for oil in Colombia, was chased p higher to 19p amid rumours that a solid drilling update from South America would be released before the end of the week.

http://business.timesonline.co.uk/tol/business/markets/article7064693.ece

Last paragraph.

Ta to LR2 on another bb.

17th March 2010



Amerisur Resources Plc ("Amerisur" or the "Company")



Operations Update

Isabel-1 spudded

Iguasa-1 testing to continue subsequent to Isabel completion

Platanillo major upside identified - work programme in preparation

Encouraging phase 2 geochemical results in Paraguay



Amerisur Resources Plc, the oil and gas producer and explorer focused on South America, is pleased to provide the following update on operations in Colombia and Paraguay.



Fenix Block, Colombia

The Company has spudded Isabel-1 adjacent to the Iguasa-1 location. The first casing string has been set at 305ft, and drilling is underway using the Latco-2 rig. Isabel-1 is designed to explore the shallow sands encountered during the drilling of Iguasa-1. A pilot hole will be drilled vertically to approximately 1,250ft, logged to define the required trajectory, after which the pilot will be plugged back and the well will be drilled directionally to pass through the prognosed sands in the most advantageous position. The well is expected to take approximately three weeks to drill and prepare for testing. Final target depth is estimated at 1,850ft measured depth.



The testing of Iguasa-1 has been temporarily suspended pending availability of equipment and chemical treatment systems. Whilst the porosity and permeability within the general matrix of the reservoir are not changed, during testing the near wellbore permeability of the reservoir formations was impacted by the mud fluids used during the drilling process. As previously reported it was necessary to use a mud weight of up to 14.7ppg (pounds per gallon) during drilling. In addition, in the initial stages of the testing programme it was required to further increase the density of the workover fluid to 15.6ppg in order to control gas levels within reasonable operational limits. The reservoirs of the Middle Magdalena Valley are prone to this problem, the effect of which is to obstruct flow pathways in the immediate vicinity of the well bore such that the fluids contained in the rock are impeded from entering the wellbore. This is common within the basin, where proven techniques are used to address it.



The Company has designed a remedial programme and the required resources are expected to arrive on site within three weeks, following which testing of the well will continue.



Platanillo Block, Colombia

The commercial production from the wells Platanillo-2 and Alea-1 continues between approximately 350 and 380 BOPD within an attractive pricing scenario as a result of which the Company is continuing to generate positive operating monthly cashflow. Following the grant of Exploitation status over 10,341 hectares of the block, the Company has now received the encouraging results of the integrated study relating to appraisal upside within the Exploitation area. This study, using regional knowledge and experience acquired in nearby fields, has identified multiple opportunities for reserves enhancement and has also given significant further understanding of the currently productive areas.



The study was performed in two parts, the first a petrophysical analysis of existing well logs in the area which has indicated with a high level of certainty that, besides the current production from the Lower U sand in Platanillo-2 and Alea-1, producible hydrocarbons are located in the Lower U sand in Platanillo-1, in the Upper U sand in Platanillo-2 and Alea-1, and in those wells at the N sand level.



The N sand, although it is a principal producer in nearby fields, has never been tested in the Platanillo block, and demonstrates excellent petrophysical characteristics in the Companys wells. In addition the B and T formations display strong prospectivity.



The second part of the study was an integrated analysis of the seismic model. It is now commonly accepted that in this part of the Putumayo basin the successful oilfields exhibit a combination of both structural and stratigraphic trapping, due to the braided channel nature of some of the productive formations. The 2D seismic data available at Platanillo are sufficient to demonstrate that the field shares strong similarities with nearby fields in that respect; however the current 2D image does not provide sufficient data coverage to allow the channel systems to be fully identified or mapped. What is apparent from this work is the strong similarity with nearby oil fields and the need for more complete seismic data in order to quantify the full field potential, given the size of the prospective area.



San Pedro Block Paraguay

The specialist consultants have now completed the interpretation of the second phase geochemical acquisition in San Pedro. The results are in line with the initial set, displaying strong anomalies of thermogenic hydrocarbons. In particular, the anomalies of Pentane gas, which is rarely seen in these studies remained very strong, and continue to indicate good coherence with the structural trends identified from reprocessing and analysis of existing seismic data. Further geological work will now be carried out, with a view to new 2D seismic being acquired based upon that study.



John Wardle, CEO, said:



"I am pleased that the drilling of Isabel is going well, and look forward to re-entering Iguasa-1, and so demonstrate the potential from the deeper section of that well. In addition, the recent work on Platanillo has confirmed our view that this block has very great potential. We are currently drawing up an accelerated work programme whose aim is to secure that potential for the Company."



Giles Clarke, Chairman, said:



"I am pleased with progress on the Fenix block. Our work on Platanillo is most encouraging and San Pedro continues to impress us with the quality of the geochemical data. I feel that our portfolio of opportunity is now maturing, with very exciting results in store. I look forward to updating shareholders on the results of our work in both Colombia and Paraguay over the coming months."



Competent person: Technical information in this announcement has been reviewed by John Wardle Ph.D., the Company's Chief Executive. John Wardle has 25 years experience in the industry, having worked for BP, Britoil, Emerald Energy and Pebercan, and is a trained drilling engineer.

Why has this effected the price so much?