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.

I would have thought that if the news had been spectacular - then we would already haave started to see buying start to creep in with a samll increase in sp

Anything on your radar SS?

Baza

Baza, Nothing new; just decided that this is a waiting game for any of three potential pieces of news - the third (and by far the largest) Colombian deal, the third Paraguayan licence area award (the area that abuts an existing Brazilian oil field), or news of CDS being successful in their adjacent Paraguayan drilling programme in the Chaco basin. If the latter gets confirmed as successful, expected within two weks, then that will have been quite smart on CHP's part since it will make it easier to get a large farm-in partner at a deal which requires less to be given up since it would have had alot of the speculative element removed by CDS' drilling programme.

Sharesure
With more buys than sells why is price dropping?

Bodeng,

Possilbly a sell just after 4pm that won't show for an hour.

cc.

Bodeng, cc's most likely right; the sp discount to asset value ratio on this makes no sense but until the market catches up with that there is nothing much for it but to wait for that to happen. It usually does in the end, so if you are planning to hold longer term to see where they eventually get to, it shouldn't be more than a temporary irritant.

Bodeng, further to last post, the 350000 X (Agency Cross) appears as a sell when really it is neutral; appreciate that only makes the buy/sell ratio v sp action worse. It all goes to show how rudimentary the classification of deals on the Trades page is.

08:30 08Dec2005 RNS-REG-Chaco Resources PLC Colombian JV and Board Update

Chaco Resources PLC
08 December 2005


CHACO RESOURCES PLC
Colombian JV and Board Update



Ecopetrol joins Repsol in Chaco's Colombian Alea Field Farm-out


- Ecopetrol ( the Colombian national oil company) joins Repsol in Alea
field farm-out

- Chaco stake unchanged at 25%

- Colombian Government changes name of block from "Guara" to "Platanillo"

- Production could start in Platanillo Block in first quarter of 2006

- Colombian Government announces intention to reduce corporation tax by
35%

The Directors of Chaco Resources plc ("Chaco" or "the Company") announce that
Ecopetrol S.A. ("Ecopetrol"), the national oil company of Colombia, has joined
Repsol Exploracion Colombia S.A. ("Repsol") in the farm-out of the Alea field
development project first announced by the Company on 3 October 2005.

The equity to be earned by Chaco remains at 25% and the Company's earn-in
obligations - to fund the first phase programme up to a maximum of US$7.4
million - are unchanged.

The Company has been advised that the Colombian Government has changed the name
of the block from "Guara" to "Platanillo".

Ecopetrol, which is the operator of the Platanillo Block, has already started to
look for an appropriate rig to re-enter and test the Alea 1 discovery well in
the block. Ecopetrol is hopeful of obtaining a suitable rig to commence these
operations by the end of the first quarter of 2006.

The Company also advises that the Colombian Government has announced its
intention to reduce the rate of corporation tax from 38.5% to 28.5%, a reduction
of more than one third, subject to ratification during 2006.

Directors Standing Down

The Company also announced on 3 October that Dr Tom Elder and Lee Graber
(together "the Former Directors") had agreed to stand down as directors of the
Company when Graeme Stephens joined the board. As compensation for loss of
office, the Remuneration Committee of the Company has agreed that the Former
Directors would continue to benefit from their original options that were
granted to them on 17 December 2004, giving them the right to acquire 1,000,000
Ordinary shares in the Company at a price of 2.16 pence per share until 17
December 2009. A new form of option was therefore executed which allowed this
benefit to continue. No other compensation or remuneration was granted on the
termination of their directorships on 30 September 2005.

Changes to composition of Committees of the Board and Non-Executives

As a result of the departure of Tom Elder, the composition of both the
Remuneration and Audit Committees has changed. Jon Pither continues to chair the
Remuneration Committee and is joined by Martin Groak. The Audit Committee will
now consist of Martin Groak (Chairman) and Jon Pither.
Following Graeme Stephens' appointment as Technical Director, Doug Jendry has
reverted to non-executive.

That sounds to me like a positive move. If the national oil company are now involved - would that mean that the government might take a keener interst to protect its assets from rebels etal.

Also - appears good news on the tax front

That would be my interpretation and also good for removing any red tape. Perhaps there'll be a gathering interest now and a couple of buy notes soon.

I thought that there was a roadshow from the 7 - 9 December, I have seen no press arising from the interviews, OIL barrel, Guardian, also I was told FT.

I have a decent holding but it seems very slow for real news, I refer to the third application in particular, perhaps we will have to wait for Alea to come online for real progress with the SP.

Just read the RNS, it seems posative for tax although not so clear with regard to Ecopetrol, I seem to remember that they were mentioned some time ago.

Agree that that is a very significant step, not just for Alea 1 but also other TEA licences. It backs up the belief that CHP are very 'well-connected' in Colombia. Should help the outcome of the third Colombian TEA deal where news should come through soon.
Expect a similar strategy to be adopted in Paraguay.

I like the " production in 1st qtr of 2006 " bit, not long to wait.

After the roadshow and the RNS I would have expected more buying-perhaps later today!

Is anyone else picking up comments that Petrobas are wanting to link in with Chaco on Paraguay? If they can attract them into a deal that will provide a lot of credibility to what the potential of their licences there are worth.
As for why the sp does not respond to the Colombian news, that is odd. But then share turnover is minute. In my view the sp will eventually respond well. In the meantime I wouldn't expect any weakening because it is so well underpinned by assets and the price of oil.

Sharesure, not as well connected as you so haven't heard anything, as for sp, I'm happy it's a slow mover at the moment as it gives me more time to move funds before production.

Another step in the right direction

Any of you well-cpnnected CHaPs have any concerns over Ecopetrol being the operator spending CHP's $7.4m earn-in cash and nothing themselves? This might seem to permit penalty free bad management at our expense.

Good news that production may start in 1Q06 and probably good for future relations with Ecopetrol over other Colombian prospects, but I get a mild sense of Ecopetrol muscling in after CHP's cash has been secured.

sd

Good news on Paraguay if Sharesure is right!

I haven't got level 2......Can someone tell me if the 500K+ trades are really all sells?

Newtrim,

There are no 500K trades today !!!

Been out at Lunch time.