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.

Who from?

I'd be interested to know that too as I believe that CHP couldn't answer that at the moment; they are at the mercy of civil servants who probably like a long Xmas break and will only deal with the decision/paperwork when they decide to. I suspect that CHP won't have to wait that long but putting an exact timescale on these decisions has proved impossible on the first two deals. The important thing is that they get the right decision - hurrying a civil servant may be the wrong way to achieve that aim!

Sharesure
On another bb a reliable poster said that the PV application would be approved in mid to late January_sorry not a week!

Bodeng, the 2nd/3rd week of Jan. fits with what I understand will happen, although so far the official confirmations from the Colombian Authorities have tended to take their time.

Amities / l am aware of the potential acreage in Paraguay /Columbia. After all it boasts one of the real gushers of recent times -Cusiana field in the Llanlos foothills. A number of majors have ambitions here. And Oil Ministries prefer doing busines with " Big oil" with its bulging coffers and generous hospitality .. But to be honest--ln a country like Columbia l cant see Chaco having the " clout" nor the sheer fiscal ability{ Looking at their balance sheet/ cashflow } to dig a hole in my back garden let alone do business in the savage corrupt business climate that is in fact both Columbia and Paraguay. . This appears to be a story of yet another oil/mining concern that has come on the Aim market with the unfortunate usual shortcoming .Desperately lnsufficient funds from very inception; and what with the cashburn of oil companies i see this as a saga of placing after placing after placing , and thats before a site is even established . .l really hope i am mistaken but i am not at all convinced about this project one little bit . . But not one for people who are heavily risk adverse. @+ J . They are on the very first rung of the ladder in iniating an oil concern with all the " real " cost yet to be bourne by the Operator Yet they have a mere 1.3 million banked . Average costs of the Operators drilling crews have doubled to 51,000 a day for a properly numbered team of on coast workers and over 100,000 p/d off coast . ,,,How long before they are in need of cash ? .......

The French Connection, Colombian legislation has recently been revised to suit any oil company that will get on with the job and extract the oil quickly, large or small. Chaco's management have shrewdly latched onto this and obtained assets using that very legislation.

The government has made the decision that big oil companies sitting on numerous fields and only working on a few is not in their best interests, so are awarding E&P licences to companies such as Chaco. Of course they will only grant these licences to companies that have the funding and capability to complete the extraction, so your concern that chaco does not have the "clout" as you say is misguided.

TFC, you are mistaken on this one. Of course it's a risky venture although already underpinned by a lot of progress in gaining assets. Apart from researching the company's website take a look at the alliance they have already formed with Ecofin. I am expecting them to get another alliance for their Paraguay interests, possibly with a company the size of Petrobas before too long - perhaps after CDS have paved the way by confirming good drilling results on their neighbouring asset in Paraguay. Agreed there are plenty of cash strapped explorers who end up getting taken to the cleaners by the oil majors. My money says that this is going to be the 'Cairn Energy of South America'. Having only recently sold my stake in Cairn, I bought Chaco as its replacement; so much about Chaco is similar, taking over discarded assets of oil majors and having good quality mgt. being two particular similarities which come to mind. If you don't like Chaco don't buy any and go elsewhere rather than knock it. If you are shorting it, I think you are risking much on adverse odds. Your choice.

Sharesure hi,
you said previously that Alea will be producing by march/april, is that still your view?
Although we are all waiting for news on latest licence application, we could also see update on Alea if march/april is still on target could we not.

dibbles, Mar/April is still the target production date. Ecofin are hoping to get a rig there in the near future to make that a reality.

Amities / Thank you for taking my criticism of Chaco with reason and grace without reverting to personal insults as is the usual procedure when one disagrees with the general consensus of thread members opinions . ... .No. l am not shorting it . To small. As i say i was mainly expressing my concern based on dual pillars .Firstly- Lack of liquid capital ( Fiscal considerations for acreage only becomes a variable of any consequence when oil is found. At the moment giving acreage a value is a hard science/ art indeed. lts akin to asking how long is an imaginery piece of string . And secondly - political stability which is well publicized ,,,ln the interests of brevity i will juste ask ?.Are you suggesting Chaco have sufficient monies to either finance ANY let alone an aggresive programme of workovers or embarkation on virgin exploration without the need of an immediate placing ? or alternative fiscal instruments such as banking backing, or loan notes from venture capitalits How long before they are doing the rounds in the city ? a week ? a month ? , Do you think their is any option ? ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, l take your point MPH that Chaco are doing much the same as a lot of highly succesful companies like DNZ and PLR are in the North sea in so far they are salvaging the oil/gas from ex BP assets who in thier wanton haste to find the real gushers cemented in a number of the known 5,000 to 10,000 bpoe wells to finance exploration of thier own .That is Chacos business model ......But that was the North sea. This is the Latin Americas .

,,,Anyway best of luck to you all ,,,,,,,,,im off out , Friday night and all that ,,@+ J

Sharesure
Thanks for the reassurance given FC' s doubts!

TFC, the proceeds from Alea (expected from March/April onwards) should obviate the need to raise any further cash to exploit their other assets. That is what the company announced as their plan some time ago, along with other sensible measures. So far they have stuck to and successfully performed what they said they would do at the time of the AGM. Another part of that plan was the personal ambittion of the chairman to get the sp to a respectable level quite rapidly (circa 50p was mentioned as a good target) to allow those remaining GMS shareholders to either sell with a decent profit or decide to stay for the ongoing potential. You may find all this optimistic; I am prepared to support this mgt. to find out if my instinct is correct.

Sharesure
What do you see as the short term target if 50p is the medium/long term?

It seems that the third Colombian deal (400m barrels of oil) is believed to have been awarded at 55% to Chaco and will be formally announced towards the end of January subject to the paperwork coming through. That may explain why a broker has been touting to buy 3m shares for a client and that in spite of today's predominance of sales the sp has stayed at the same level. CHP has already won the previous two Colombian deals which it applied for, but this third deal would take the company into a different league. As for expected sp, it should be significantly higher now and as a result of this third deal but so far the market is only waking up slowly to what Paraguay and Colombia have to offer as far as oil is concerned.

Sounds good Sharesure, thanks.

Very good news Sharesure!

Interesting, I will redo some calculations on that assumption and see what we get.

About bloody time - well done SS - good bit of ferreting

All very promising for a bit of upward momentum - thanks Sharesure.