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.

Perhaps January will be good!

Perhaps those in the know are quietly picking up stock while no-one is looking.

Interim results published, currently having a read.

http://moneyam.uk-wire.com/cgi-bin/articles/200512230700170497W.html

Encouraging to see the Chairman reminding all about the third application:

"An application for a third Colombian E&P contract in which we could earn a 55% interest"

All sounded very encouraging and quite enthusiastic for a chairmans statement. He thinks they have won it - without actually saying so

That's the impression I got bhunt.

Result of third application in 2005-next week then!

Suspect that CHP already have a good idea that this third Colombian deal is coming their way but until the Colombian Hydrocarbons Ministry has actually put their rubber stamp on the application result CHP cannot announce anything. Wouldn't be srprising if news is not out until New Year

Everything looks good for next week after late buys today especially if we get news!

We could use some buys today!

WDBM soaking up those sellers without flinching......is he back on a buying spree?

Thanks for the info MPH,looks like we could be in for a good start to the New year then.

I see Wins dropped the offer back to 7.3p, in a few weeks all this messing about with 0.001p will seem a distant memory, I have a real good feeling about them, I wish TMC would come good quick so I can shift more into Chaco.

There are always T20's I suppose, any thoughts anyone on timescale, if that third application is good or CDS hits, it will be straight into double figures.

Buys today instead of sells would be nice!

CHP is absurdly cheap on current prospects with no speculative credit for the potentially good news on both Colombia (next week?) and Paraguay (next week and also at the end of March?)

Sharesure
What happens at the end of March?

Bodeng,

I assume Sharesure is referring to the situation that Paraguay is very quiet from now until then, the third application is the one and I think we will find out next week.

Anyone see KJ Kelly's forecast on price on the other board, he is saying 13.5p by end of 2006 or 18.5p if we get the third application, I will look at his calculations later however I would say that if oil flows with Alea and CDS is posative then it will be 25p + by April.

Bodeng/Stewart I was assuming that CDS will clarify/quantify their drilling results next week and that that should have a positive impact on Chaco because of their neighbouring and much larger exploration area. I don't think that CHP expect an answer on the third Paraguay licence area until much later in Feb. or more likely March. Not to be confused with Colombia where I reckon news will come in early January.
As for KJ Kelly's forecasts I think that they look extremely conservative to the point where they are wrong; has anyone seen a justification or the workings for those forecasts. I still have a hunch that CHP has the potential for being the 'Cairn' of South America.

Sharesure, there you go and a Happy and Prosperous New Year to you and all others here.


My last thought for the year is wondering about the share price at the end of 2006. Any offers?.

Using Chaco's own figures I'm going nap on a share price of 18p, assuming that Chaco get Primavera.

***********************

Shares in issue - at 31.3.05 390m, plus shares issued re Paraguay 19m, placing 85m and options 13m. TOTAL 507M

Net assets:
1. Per balance sheet 31.3.05 - 1.3m
2. Future cash from exercise of options - 0.5m
3. Columbia, Alea, net present value end 2006 $86m - 49m
4. Columbia, Puerto Lopez, 2006 NPV could be worth $54m - 31m
5. Paraguay. CDS has areas exclusively in Paraguay and is drilling currently. It has a market capitalisation of 16.8m. I don't know how its areas compare with Chaco's but I am assuming its reasonable to equate the value of Chaco's Paraguay areas with those of CDS. Value of Chaco in Paraguay - 16.8m.

Therefore the 2006 net present value of Chaco's current assets is 98.6m.

The present net value per share of Chaco's assets is 91m divided by 507m shares, giving 19.5p.

The shares are currently priced at 7p, a discount of 61% on my projected Net Asset Value. I'm going to assume the discount will narrow to 30% as news emerges in 2006 on current assets. That gives a share price of 13.5p.

Now onto Primavera. If Chaco get a 55% stake and the resource estimate is 200m barrels, at soem 20 times the size of Puerto Lopez it implies a 2006 NPV of 310m, some 61p per share but until proven it might add 5p per share. I'm going to ignore any other new developments. Therefore, I'm going nap on a share price of 18p.