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.

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!

bhunt1910. Thanks for posting the RNS to the thread.
For the chairman, Jon Pither, a very cautious individual,to be commenting in more detail on Colombia it points to the Board knowing that they have secured a deal already. No doubt that drafting of the RNS is taking the time. Today is surely the last market day that CHP will be seen at the current price. This has to be one of the most promising oil and gas plays around at the moment.

Interesting stream of buys going through. This is all looking good for next week.

Are we expecting even more news on this one next week?

Philip3, Yes, on Colombia

One sale of 2,000,000 shares. Implications?

Thanks for this one sharesure,i noticed you last week on the Griffin thread tipping this.I thought it was worth a punt because like you said there was little downside risk given the price at the time.This has certainly given me a nice quick profit unlike Griffin which i bought in Febuary at 35p and really doesn`t seem to have moved on much from there given its bright outlook.
Many Thanks
DB66

Not sure that the identification of sell and buys is that accurate some of the time. The MM's are playing games on this one at the moment but think Tuesday will produce a clear way forward. This has the right 'feel' about it.

Great end to the week on CHP; the BH week should see this take off. Of all the oil plays around at this time this should turn out to be one of the highest flying; it has a great concept for growth. To sea why read the RNS' re TEA agreements in Colombia.

Monday's Daily Telegraph's list of best performing shares by sector should show Chaco at, or near, the top of its group. One week further on and there should be no doubt about the clear winner. This should be the week when a new word enters the English language: to Chaco - to outsmart by clever timing and imaginiative use of new regulations.

This share looks very exciting - in fact, a little too exciting for me. I was partly too timid and partly without anything I wanted to sell to create spare funds to get in at the 5p level when it was first drawn to my attention.

On fundamentals, securing a JV deal in Columbia will be no more than the start of a long hard slog to find oil requiring a great deal of fund-raising along the way. There is an equally daunting journey ahead in Paraguay before oil could possibly flow. The oil price may not have reached its zenth for this decade by a considerable distance yet, however it's currently high enough not to be able to drag any totally speculative share prices any higher IMHO. (cf, FOGL who's SP has been moving sideways within the 90-135 band since oil prices were $50 per barrell).

Looking at the chart, I would refer you to the below link which illustrates a classic bump and run formation. CHP is not so accentuated, since its lead-in trend is not as steep as classically demanded, but it is well overbought on most indicators currently and I would (were I a shorting man) be preparing to sell after the good news you all anticipate, hoping to catch any final lift, or immediately if none was apparent. To compensate for its lack of classically steep enough angle of lead-in and bump, it has now developed a tertiary precipitous jump up, way above even the recently accelerated channel. I expect over the weeks following the fabled RNS to see it decline quite sharply at least to the March-June trend line and possibly through that in the short term - that for me would be the buying opportunity. If there is oil in them thar hills, then there is time enough to recapture today's high ground and make a much less risky profit.

Good luck and congratulations to all those who got in at 5p or less, especially if daring enough to get in at 3.5p. My sincere advice is to take profits now, or very soon. Remember the famous investor John Templeton who ascribed his vast fortune made on the stock market to "consistently selling too early"!

DYOR

SD

http://stockcharts.com/education/ChartAnalysis/barr.html

Stockdog, I think you have missed the significance of the TEA legislation. A company can effectively take over a licence where oil has already been discovered but not exploited at the speed the Colombian government expects. The reasons an existing licence holder may allow themselves to lose their licence is because the find may be small by their standards but very significant to a company like Chaco. There are various rumours about which large oil companies may have allowed this to happen to their assets; but Chaco's timing in going for areas under the TEA legislation during July/August (traditional holiday months) may prove to have been inspired. Wait and see. Whether shareholders should sell on the ews in this case might need careful thinking. Whilst it is often good advice it is not always.

I'll watch with interest.