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.

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.

Copied from another board courtesy of Greatful Dead.

Purely factual - not exactly a recommendation

Worth a read. From Oil Barrel
BLR 1st then CHP.

13.12.2005
Colombia Is The Place To Be For The Likes Of Black Rock And Chaco Resources
The transformation of Black Rock Oil & Gas from an Australia-focused outfit to an international player with projects on three continents is complete. Last week the company announced it had handed its 8.3 per cent stake in EP-325, which lies in the Carnarvon Basin off the coast of Western Australia, to Advent Energy in return for a 0.8 per cent royalty on any hydrocarbon sales from the licence.

"Black Rock flagged its intention to exit from exploration in Australia some time ago, said managing director Ivan Burgess. This deal allows us to participate in any exploration success on EP-325, yet concentrate management time and financial resources on our core Colombian and North Sea acreage."

Its quite a change from 12 months ago, when the company had wells drilling in the Carnarvon and Cooper Basins of Australia and had high hopes for two onshore wells in southern England. The Australian assets are now gone while the Isle of Wight drilling campaign came to naught. Instead the companys attention is now Colombia, the North Sea and California.

Colombia is proving a hit with smaller E&Ps. While North Sea investors took a hit last week when Chancellor Gordon Brown doubled the tax rate, taking corporation tax to 50 per cent, the Colombians, anxious to attract inward investment to shore up production levels (isnt that what the DTi has been talking about for the past few years?), announced their attention to reduce corporation tax from 38.5 per cent to 28.5 per cent.

Its good news for the likes of Black Rock, which holds 50 per cent of two adjacent licences in the countrys Middle Magdalena Basin. This region is a prolific oil province, having produced over 2.2 billion barrels of oil, and a major oil pipeline runs through the acreage, linking to a refinery capable of handling heavier crudes.

Black Rocks interests here are the Kappa Energy-operated Alhucema licence, where new 2D seismic and drilling is planned for 2006, while immediately to the south lies the La Quinchas licence, home to the Bukhara prospect. Bukhara has the potential to hold 70 million barrels of heavy waxy crude although results from the Bukhara-1 well proved inconclusive. Further testing and work will be needed on this deposit.

The licence also holds the Arce deposit. This heavy oil project is never going to be a company-maker but it does hold the promise for near-term production for the AIM-quoted oil junior. The Arce-3 appraisal well, drilled this summer, flowed between 25 and 36 barrels per day of sticky 13.5 degree API oil. The Arce-2 well flowed at rates of between 10 and 60 bpd. The field has a gross recoverable reserve estimate of 5 million barrels (Black Rock holds 50 per cent). The use of steam injection to make the heavy oil more mobile is common in Colombia and can increase production rates five or ten fold - at which point the Arce field starts to look much more interesting.

AIM-listed Chaco Resources is another company attracted by the possibilities of investor-friendly Colombia. Chaco started life focused on the untapped potential of under-explored Paraguay but has added some near-term production opportunities by picking up acreage in Colombia.

Its a country which makes life easy for smaller companies, with favourable fiscal terms and low-cost entry routes, such as the technical evaluation permits (TEAs). These allow firms to analyse the prospectivity of a block without committing millions of dollars to seismic or drilling. The TEA model recycles acreage so that blocks are held by companies serious about working up the asset. Third parties can submit a development budget for all or part of another companys TEA and the TEA-holder must then match the budget within 30 days or it loses their right to the acreage. As long as the Colombian oil ministry approves the third partys development budget application (which it commits to do within 60 days) then the newcomer can takeover the block and get to work developing its potential.

This is the process by which Chaco has been winning projects in Colombia. Earlier this year, it submitted a budget for the undeveloped Alea field in the Putumayo region, which was discovered in 1988 when a well flowed 533 bpd before it was capped. Chacos budget was matched by operator Repsol, which in October agreed Chaco could farm-in as a joint venture partner, earning a 25 per cent stake by funding the US$7.4 million first phase of the work programme. Last week the partners were joined by Colombias state oil company Ecopetrol when it exercised its right to take over operatorship. Ecopetrol has started to source a rig and plans to re-enter and test Alea-1 in the first quarter of 2006.

In November, Chaco joined a consortium that had submitted a development budget for the Puerto Lopez Oeste Block in the Llanos Basin. Chaco will hold a 54 per cent working interest in the block, which lies on trend with the Valdivia oilfield that is currently producing more than 3,000 barrels of oil per day. To earn its equity stake, Chaco will pick up the US$1 million bill on a seismic programme (reprocessing existing data and acquiring 100 km of new seismic) with the aim of finding a Valdivia look-alike. It also has another TEA application outstanding in what is shaping up to be an interesting portfolio.