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.

The CHP announcement is still likely to be tomorrow, IMO.. If it goes CHP's way it will transform the company. The shares should then respond very positively

Hope so Sharesure, it will take my mind off some of my slower holdings at the moment...

Just moved to a new price level; hopefully this is about to happen?

Interesting series of buys this afternoon, some quite sizeable. Looks imminent for an RNS

1000000 buy late on. That's quite a commitment or someone believes we are nearing an announcement

Thats down as a sell on Digital Look and i pressumed thats what marked the price down ?
DB66

DB66, Digital Look may be right as the mid price at the time seemed to be 6.03p on the trades page, whereas the quote page was showing 5.3p - 6.3p, mid point 5,8p. Confusing, that buyer/seller was either very astute or very stupid, take your pick!

buys to sells, 4 to 1 ratio. There is going to be an announcement soon

Guess things take longer to happen in August. The source is still positive.

CHP sp is beginning to firm up again. The announcement of further deals, Colombia, very soon is likely.

Shouldn't be long now, whatever way it goes.
A poster on the other bb said he spoke to Martin Groak yesterday and was told he couldn't say anything now but that there is lots going on behind the scenes.

My contact wont take my calls; it looks like the announcement is soon to be made and everyone is being more careful about leaks occurring.

Has the news that we have all been waiting for been announced?
sp up 9 % at the moment!!

Certainly lively today, does someone know something we don't yet.

As far as I can find out the news might come out either this Friday or the Tuesday after the bank hols. The company's broker's seem to be soaking up the stock and their team are apparently in Colombia until the weekend. Draw your own conclusions. The way nobody is letting on about anything suggests that its going to be good.

Watch CHP Friday for any early announcement of its Colombian deal; There's no reason for the company's brokers to be continually picking up stock and be the highest bidder out of all the MM's in this stock unless they are convinced the deal is as good as there and a good one.

Look's like this one's a goer. Patience is a virtue.

Chaco Resources PLC
26 August 2005



CHACO RESOURCES PLC

PRELIMINARY STATEMENT FOR THE YEAR ENDED 31 MARCH 2005

HIGHLIGHTS:

June 2004: Company refocus on oil & gas exploration in South America

July 2004: Company changes its name to Chaco Resources Plc

November 2004:Company confirms acquisition of Amerisur S.A. and Bohemia
S.A., two Paraguayan companies with applications for hydrocarbon
exploration and production concessions in Paraguay

November 2004: Douglas Jendry and Victor Valdovinos are appointed to the
Board

March 2005: Company signs Memorandum of Understanding with Expet S.A. to
seek to acquire hydrocarbon exploration and production concessions in
Colombia

August 2005: Paraguay subsidiary granted two exploration and production
concessions - San Pedro and Curupayty areas, totalling 2.3 million hectares


Chairman's Statement

In the year covered by this report, the Company has been completely refocused
towards oil and gas exploration and development in South America. I am pleased
to report that considerable progress has been achieved.

Our initial targets were identified in certain areas of Paraguay, which,
incidentally, accounts for your Company's new name, adopted in July last year.
The Chaco Boreal is a substantial area in northern Paraguay, abutting the border
with Bolivia. Interestingly, it is an area over which a war was fought between
1932 and 1935 because of a belief that it was rich in oil.

Chaco has been drawn to this region because of its potential for commercial oil
accumulations. During the year, we acquired two Paraguayan companies: Amerisur
S.A., which has just received government sanction for two exploration and
production concessions, and Bohemia S.A., which has a permit application in
progress over a single, larger area. Assuming this latter application is
successful, your Company will control three exploration and production areas
covering a total of approximately 47,000 square kilometres of the Curupayty and
Parana Basins. These basins extend into Bolivia and Brazil, where commercial oil
and gas production has been established for many years from similar geological
sections.

The change of direction for your Company will, I believe, expose us to greater
opportunities for wealth creation. Oil is trading close to its all-time high,
and demand in the fast-growing economies of South America is strong for both
liquid fuels and natural gas. We are confident that any discovery, even of a
modest size, will develop quickly to take advantage of demand by utilising the
extensive and rapidly expanding pipeline and refining capacity in the region.

Despite being host to five sedimentary basins, Paraguay has little significant
oil and gas production. Only 48 oil exploration wells have ever been sunk; the
last in 1995. Geological understanding of the basins has increased substantially
in recent years, as has oil exploration and drilling technology. It is
significant to note that of the 48 wells drilled almost half (22) reported shows
of oil and/or gas.

I used the word 'initial' earlier for a good reason. Your board sees the
acquisition of the interests in Paraguay as just the start for Chaco Resources.
It is also significant that we have entered into a memorandum of understanding
with Expet S.A. to form a joint venture that is seeking exploration and
development assets in another South American country, Colombia.

Colombia, as many of you will know, has a much more extensive record of oil and
gas production and is rated as one of the most prolific producers of the
continent. If we are successful in securing access to tenements in that country
it will expose your Company to significant opportunities.

To reflect the new direction of our business I welcome to the board Mr Victor
Valdovinos, a Paraguayan resident and highly-regarded legal advisor in that
country, and Mr Douglas Jendry, an Australian geologist with extensive
experience in the oil exploration business. Furthermore, in the event that we do
obtain assets in Colombia, Graeme Stephens, who was formerly Lasmo's chief
executive there and who has been advising us, has agreed to join the board to
oversee that operation. These new directors are extremely valuable additions to
the board and reflect our continuing re-evaluation of the board's composition.

As a final comment, I would like to express my gratitude to the way our small
management team has handled several very difficult years. Sardinia was an
extremely frustrating experience for everyone involved, but it is a measure of
our determination to succeed that we have shaken off that experience, regrouped,
and found a new way ahead for your Company.

I look forward to Chaco Resources enjoying significant success with its new
focus on the oil and gas industry.

JON PITHER

Chairman

This is the best bit.

I used the word 'initial' earlier for a good reason. Your board sees the
acquisition of the interests in Paraguay as just the start for Chaco Resources.
It is also significant that we have entered into a memorandum of understanding
with Expet S.A. to form a joint venture that is seeking exploration and
development assets in another South American country, Colombia.

Colombia, as many of you will know, has a much more extensive record of oil and
gas production and is rated as one of the most prolific producers of the
continent. If we are successful in securing access to tenements in that country
it will expose your Company to significant opportunities.

Think it is nearly time for ecopjh, post95 dated 16/8/05 to hit the floor. Next Tuesday looks on!