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.

Well done MPH, are you able to interpet those 650,000 trades

Been out all day - very pleasant surprise on my return. Well done all who kept the faith. Hopefully another good day tomorrow

Unkown Trade timed for: 19/01/06 17:46 7.3p 1,500,000 could be a Buy??

stewart I'm not sure how to interpret those 650k's. I'm assuming they must be institutions as retail rarely uses VWAP orders.

Just noticed another 650k B trade. B is an Institutional swap I believe. Anyone confirm?

Something is going on, can't quite put my finger on what the trades mean. All the rumours from independant sources that the 3rd deal has been sealed added to the likelyhood that paraguay is going to be a real gem on its own based on CDS's news, would lead one to believe that those trades are people finally waking up to the potential.

silvermede, take a look at some of the other 500000 trades as the timing of them suggests that they are buys too. CHP are saying very little at this time so an RNS must be very close.

Sharesure, I believe those 500k's are buys also. The 598k @12.26 and the 200k @ 10.29 are the only large definate sells that I can see.

SS

My guess as to what is going on is that we are in the 'inbetween stage' where the company has learned of an outcome and is preparing the legalities and paperwork for a press release.

I think that this stage can last for up to a fortnight.

That would explain the extraordinary trades that happened late in the day. It would also explain MG's recent silence/dull emails.

MPH Thanks. Without level 2 I was unable to be certain.
Alfred, Agreed, but I don't think that we will have to wait 2 weeks. The rush of money late on suggests that this news is ready to come out.

SS

Agreed. I am erring, yet again, on the side of caution. News tomorrow then?

That would be nice - but I have learnt to be patient with this one - which is totally against my nature

B= broker to broker

V= block trade delayed 1 day
W= block trade delayed 2 days
VWAP= value weighted average price

Looking good, fingers xxd for tomorrow then.

If not tomorrow -quite soon!

ELP INFO::::::::::::::::::::
Translated excerpts from an article in the Norwegian financial paper Finansavisen 17 Janaury 2006:

.......DNO [www.dno.no] is busy preparing for the drilling the exciting Jaguar project. According to DNO the field could contain between 54 and 280 million barrels of oil with the most probable estimate at 138m barrels. This would mean 83m barrels for DNO, or a reserve increase of 80%.

- Jaguar is our next big project and it starts in the very near future, the CEO of DNO Mr. Helge Eide says to Finansavisen........


Now take a look at this:

If 83 million barrels is an 80% increase in DNO's reserves, their current reserves must be approximately 100m barrels. The market cap. of DNO is today 1billon, or 10 per barrel of oil reserves. However, as well as OWNING reserves DNO is also pumping and selling oil. Therefore lets allow for this and value their oil reserves in isolation to 7 per barrel.

DNO (and Rocksource ASA) own 60% og Jaguar and Eilixir owns 40%. If they find 138m barrels of oil Elixirs 40% will equate to 55m barrels of oil reserves. Multiplied by 7 per barrel this gives a total value of 385m to Elixir. Eilxirs market value today is 26m. Therefore if DNOs likely scenario (if they strike oil) happens Elixirs share can rise to 6.

What the hell has that to do with Chaco

Thank you Jamie - and I thought it was just me that was being thick - I am glad it made no sense to you as well.

Another tick up this morning - keep stoking the boiler

At the most charitable level isn't Jamie106 saying that CHP is very undervalued?

Thank you SS - if thats what he is saying - why doesn't he say so. But yes - I guess that is how it could have been interpreted - I am but a simple person and I like things spelt out.

Baza

Nice pick up again - could be heading back to the highs now

Good morning all, very nice start indeed, could news be about to break ?

Level 2 :- 1 v 3 Bid 7.6 Offer 7.8