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.

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.

Does anyone have any rough ideas as to how promising this could prove, price-wise ? Surely the current 7p is hugely underpriced considering ?

Current range seems to be between 10p and 1. Take your pick.

I've done some updated calculations on the assumption that Chaco is granted the E&P license for the Primavera field as rumoured by numerous sources.

Primavera Block @ 400m barrels.

I will assume that the 400m is the total oil and as in previous blocks 50% of that is actually recoverable.
Therefore recoverable oil = 200m barrels
55% stake of 200,000,000 barrels = 110,000,000 barrels for Chaco
@$10 per barrel in the ground = $1,100,000,000
Minus costs of $1.2m for 3 shallow test wells and $50k to re-process and re-interpret existing seismic data. This gives us $1,098,750,000 or 615,201,568

476.44m shares in issue is equal to 129p per share in the ground.

(Please refer to my previous post (#970) for a breakdown of other calculations)

So to summarise:
4p for Paraguay
14.9p-19.5p for Alea
3.1p for Puerto Lopez
129p for Primavera

Short/medium term:
Share price valuation for oil in the ground = 151p-155.6p

Longer term:
As oil starts to flow in each field, multiply the in ground valuation by 3.5 to allow for the increased value of oil at the well head (approx $35)

dyor imo

Interestingly didn't Simon Cawkwell (EK) say when he bought that his source suggested 200p was a reasonable target for Chaco?

Update on earlier note. Now between 10p and 200p!

MPH Thanks for doing your calculations. Looks very encouraging and your recollection about SC (EK) is correct. Maybe it was him trying to tease out another 3m shares from existing holders. He won't be having mine!
Blackdown, you seem doubtful? Once oil is flowing, ie a track record is being established ( as early as March 2006) this stock should fly. I hope CHP will eventually confirm the sort of calculations MPH has done; even if the market discounts those valuations for some reason, it is still going to result in a spectacular re-rating.

Just checked back and I can't find EK's comment to confirm. I did however see Tom Winnifriths comment in which he suggests if a big deal comes off then we are talking 100p+
One can assume that big deal is Primavera.

EDIT: Thanks for the confirmation re EK Sharesure.

mph, in plain english what are we assuming here, soory im new to this game so would weelcome your expert observations?