LONDON (AFX) - Chaco Resources PLC said it is proposing the reverse takeover
of two Paraguayan companies -- Amerisur SA and Bohemia SA -- from Candey SA and
Daniel Sztern in exchange for 27,322,404 new ordinary shares in the company.
It also plans to raise up to 750,000 stg before expenses in a placing of
36,585,365 new ordinary shares.
The company's shares were suspended on Sept 3 and it said it expects this to
be lifted today. It has called an EGM for Nov 15 to approve the acquisition and
placing plans.
Amerisur holds two oil and gas prospecting permits in Paraguay and is the
registered applicant for exploration and exploitation concession contracts over
the same permit areas. Bohemia holds registered applications for an oil and gas
prospecting permit in Paraguay and for an exploration and exploitation
concession contract over the same area.
The exploration areas covered by these three applications comprise a total of
approximately 48,000 square kilometres of the Curypayty and Parana Basins.
Chaco said these basins extend respectively into Bolivia and Brazil, where
commercial oil and gas production has been established for many years from
similar geological sections.

Sharesure
25% of 400million barrels in the ground seems to add 1 per share to the SP-do you agree?

bodeng

It has proved difficult/disappointing to work out what the share price should be/where the share price ought to go after each announcement.

We are yet to make that eyecatching announcement that makes others take notice.

The share price with what has already been announced, should be between 13p and 28p a share, according to Martin Groak.

To give oil in the ground a value of $1 a barrel is pretty conservative if you think that it will probably be worth $20 a barrel profit at the well head.

If they can secure anything like a 25% stake in a 400 million barrel field then the share price should be 50p+ and then still be attractive to the value investors.

A 50p share price would mean a market capitalisation of approx 250 million.

alfred

Jeff, that's way to high for "in the ground" oil based on the current number of shares in issue.

IMHO, I'm not sure Martin Groak (as the FD of a quoted company) would have been as irresponsible as to make a written statement to a PI recommending people to buy shares and giving a valuation?

I also think that in the past continual wishful thinking by PI's on BBs has only resulted in disappointment, disillusionment and SP drops. Let's not get carried away again on pure rumour.


WDIK, PDYOR.

camlad

camlad

I agree entirely, especially your last point. And I have been very guilty of that in the past.

alfred

A poor start to the day given the potential!

If anyone wants more detail on how Martin Groak came up with the 13-28p range I will send it to you-geoff.boden@ntlworld.com

Bodeng, I think the drift in sp will be short-lived. I would expect MG and co-directors to commence some PR/institutional meetings at some time soon, and certainly before Xmas, perhaps to coincide with the third Colombian application. I have seen the same sp range as you have; this stock will get there in time and do more. I've just recently bought a load more and think that this might/ought to be one of RHPSG's 5 top oil stocks which they are about to announce.

SS,

Sorry for the question but can you explain for a novice what the RHPSG is and when they will be announcing their top stocks?

Thank you

cc.

CC It's Red Hot Penny Share Guide run by Tom Bulford. Each week he sends out an email with updates + for those that subscribe to his tip sheet (monthly, I think) he gives a run down on what he reckons is worth buying. As for his success rate - from what I can tell he does better than many of his competitors although, like all of us, he is capable of having an off day! I received an email recently stating that he was about to give his selection of the best small oil exploration stocks. I would expect CHP to be one of the short-list, plus possibly CDS and VOG. I rate CHP to be the best of those three but then having just bought more I would.

Sharesure hi,i posted a few days ago stating that in my opinion the shareprice would go as low as 6p without any news,which has been a common support level.Whats your thoughts as id`e like your opinion.Cheers.

pisces, it's probably obvious to many that I don't think this share is going lower; having recently upped my holding quite substantially I do expect that confidence to be rewarded over the next few weeks. It's only my opinion that this could be the 'Cairn' of South America but having recognised the last Cairn at 30p, watched it go on to become a FTSE 100 stock and only recently sold it, I am now hoping that the ingredients are there for CHP to have the potential to at least copy Cairn to some extent. Guess it would be too much to hope for the same amount of oil and gas to be discovered, but with early cashflow from Alea 1 to fund other exploration in Colombia and perhaps, more significantly, in Paraguay who knows.
Good luck to you if you get back in at a lower sp, I just wouldn't bank on my chances of being able to buy cheaper than current levels as I do think the sp is already at a very significant discount. All in my opinion, so you take your choice!

Any publicity now would be welcome in the run up to Xmas.

WAS MENTIONED YESTERDAY IN SHARES MAG PAGE 26 AS ONE OF FASTEST SM CAPS OF THE LAST YR.

Chaco - nearly all buys today - and at last sp has ticked up in anticipation of news next week

Roadshow next week according to several posters on the other bb.

Lets hope it starts to take off then

Don't be concerned this is sound, you'll see soon.

Driftwood - thank you for that reassurance - actually - from what I have heard I feel reasonably confident on this one at the moment - but the next 7 - 10 days will be quite key I think as news starts to filter out via press releases and PR interviews

Looking forward to the roadshow!

First meeting tomorrow morning with the Guardian!