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.

could just be a shake prior to news from the roadshows appearing in the weekend press and oil-barrel on Monday?

on the other hand, perhaps the lack of news so far after a week of PR work has worried some PIs and a mini sell off is starting.

have to say todays drop looks overdone on the v.small volumes showing, unless there is larger volume hidden in the background.

WDIK, PDYOR.

camlad

camiladasi -

Have you seen those late trades 4 x 400,000 ?

ald, don't see any 4 x 400K - I do see 4 x 100K, but looking at the timings and prices they could just as easily be 2 roll-overs. also, if they were all sells and were going to impact the price, I would have expected the SP to open down, but it didn't. the drop is showing against very small volume today, hence my comments above.

all IMHO

WDIK, PDYOR.

camlad

Yes they were 4 x 100,000, anyway i have just sold out at 6.9, if these shares are so good why after the recent news and the city road shows they have fallen?

These shares are for the long play I think - not for traders.

Expect to see slow steady progress over next 3 to 6 months.

I did that with DNX - sold out at about 1.50 because they had not moved for 6 months - now look at them - hovering around the 10 mark

So i have plenty of time to buy back in then.

Your guess is as good as mine - but if you look at the valuations - the valuation woulds appear to support an sp at least 50% higher than today. However these things never seem to follow logic

Some encouraging news from Martin
Hi Geoff,

I'll be commissioning some research in the near future, plus we should hear soon about the third application, so hopefully that will put some life into the share price. Other than that, we've had good coverage from Tom Winnifrith at T1Ps - both the Webcast and a transcript of his interview with Graeme Stephens - and a "strong hold" recommendation. We should see some more coverage from the presentations. Unfortunately, the FT were unavailable until the 2nd week of Jan, but that is now booked in.

On Paraguay, there have been "expressions of interest", but it would be a bit too early to firm anything up.

Presumably you saw in the announcement that the Colombian Government wants to reduce corporation tax from 38.5% to 28.5%; although in that case I assume we would not get below the UK rate of 30%. That to me is significant news: it would boost any earnings from there by around 13% compared to previous estimates.

Regards

Martin

There was also a 300,00- buy at the close!

Some encouraging news from Martin
Hi Geoff,

I'll be commissioning some research in the near future, plus we should hear soon about the third application, so hopefully that will put some life into the share price. Other than that, we've had good coverage from Tom Winnifrith at T1Ps - both the Webcast and a transcript of his interview with Graeme Stephens - and a "strong hold" recommendation. We should see some more coverage from the presentations. Unfortunately, the FT were unavailable until the 2nd week of Jan, but that is now booked in.

On Paraguay, there have been "expressions of interest", but it would be a bit too early to firm anything up.

Presumably you saw in the announcement that the Colombian Government wants to reduce corporation tax from 38.5% to 28.5%; although in that case I assume we would not get below the UK rate of 30%. That to me is significant news: it would boost any earnings from there by around 13% compared to previous estimates.

Regards

Martin

Thw 300,000 buy was a roll over

Sharesure
Not long now until CDS reach their target depth in Paraguay!

bodeng, CDS' Paraguayan drilling should be finished by 19/12 by my calculation. Their sp doesn't look over ambitious at the moment but nobody seems to be crediting drilling companies with their prospects at the moment. It's all about oil in the tankers/pipelines.
I still expect that the news on the third CHP Colombian deal has been successful and will be reported either this week or next.

Just managed to free up some cash to buy a few more at this price!

Someone on here some time ago tried to sow seeds of doubt about the stability of Colombia. See today's Times, page 31; a big 'warlord' Carlos Jiminez and his band of 2000 has agreed to disarm today in return for an amnesty. Seems that some of the measures against bandits are working and backs up the board's view that the general situation is OK, and a good deal safer than other so called civilised oil exploration areas..

That is very welcome news - reduces one of the risk factors significantly

Cant say I think much of the Chaco PR machine - seems like a wasted effort to me - not a dicky bird in the papers

Does that mean that no one beleives the story - cos if that is so - that could be worse that not doing the PR at all.

The rest of the market will catch on to this at sometime.Just looking across at GFM, that tried all sorts of ways to get recognised for what it had achieved over a considerable time and has only recently made the breakthrough. Another piece of decent news should make the same breakthrough here; it would be reasonable to expect that this side of Xmas but there seems to be no way of hurrying the Colombian Hydrocarbons civil servants - bit similar to our civil service, an oxymoron if ever there was one, particularly as far as the FSA is concerned!

Perhaps Chaco are better at doing deals than they are at PR!

Well that would be nice to see - I can wait - this is long term - but it does get frustrating when you can see so much potential

The problem is chaps, that every time you pick up a paper or financial magazine at the moment,more and more small exploration companies are appearing from nowhere.It seems to be a saturated market at present and how can you expect institutions to come onboard when there are bigger fish in the sea.I`ve no doubt chaco will come good but i think it will take a lot longer than most holders expect,a very similar situation to stanelco. Have patience.