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.

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

CDS also up another 12% this morning

News today or Monday?

Is this OUR Chaco? Fom today's Caracas 'Daily Journal'

Morales faces important decisions
La Paz Evo Morales, the Socialist who will become Bolivias first Indian president on Sunday, faces the difficult task of fulfilling his campaign vow to nationalize the countrys huge reserves of natural gas while at the same time assuaging fears of foreign capitalists who discover and extract the vital resource.
Morales says his conception of nationalization does not mean confiscating or expropriating oil company assets. But he insists on national ownership of the countrys mineral wealth as a means of overcoming the crushing poverty that afflicts 63 percent of Bolivias 9.4 million people.
On his recent tour of 10 nations on four continents, the president-elect reaffirmed his plan to carry out what would be the third nationalization of the petroleum sector in Bolivian history, while telling foreign firms that they have nothing to fear.
During stops in Madrid, Brussels and Paris, Morales was urged by his interlocutors including Spanish, French and European Union officials to preserve legal guarantees for foreign investment and to rely on negotiations to resolve Bolivias quarrels with the multinationals.
The Socialist, who says that Bolivia wants partners and not bosses, will soon have to explain how he means to go about nationalizing the Andean nations petroleum resources without scaring off investors.
The Bolivian Hydrocarbons Chamber, which represents the local affiliates of the foreign oil and gas companies doing business in the country, has refrained from public comment since Morales won the Dec. 18 election, preferring to wait for details about his plans.
One energy-sector businessman, commenting on condition of anonymity, told EFE that there is message pointing toward moderation of the positions, but added, regrettably, they are so ambiguous and contradictory that its difficult to know what will happen.
The future government also speaks of making further adjustments to the schedule of taxes and royalties applied to gas and oil production.
Under a law enacted in spring 2005, Bolivias levies on firms rose from some of the lowest in the world to a cumulative 50 percent, and Morales team wants to apply an even higher rate to companies that have already fully recouped their initial investment.
The Socialists also want significant revisions to the contracts the multinationals signed with the conservative Bolivian government that privatized the sector in the 1990s, and they want the state to take an active role in developing a domestic industry to process natural gas into products with bigger margins, such as clean-burning diesel fuel.
In addition, Vice President-elect Alvaro Garc Linera, a college professor and former leftist guerrilla, has promised government takeovers of firms engaged in abuses.
The first company likely to face that threat is Chaco, half-owned by global giant BP and accused by Morales party of smuggling fuel.
Chaco denies the charge, but did pay a fine of just over $1 million to avoid an audit by customs officials.
The Socialists say their agenda will not lead to capital flight, insisting that Bolivia is and will remain a country where foreign capitalists can make money. But uncertainty about the future rules of the game is already having an impact.
Preliminary figures show that Bolivia received only $130 million in foreign direct investment last year, compared with $608 million in 1998, at the height of the privatization process.
Bolivia has an estimated 48 trillion cubic feet of natural gas, giving it the second-largest reserves in South America after Venezuela.
This nations two previous experiences with nationalization came under markedly different circumstances. On both of those occasions, Bolivias natural gas was under the control of a single foreign company, whereas now, nearly a dozen firms are extracting the countrys hydrocarbons.
In 1937, in the first action of its kind in South America, La Paz booted out Standard Oil, then the worlds most powerful oil company, while the 1969 nationalization affected the Gulf Oil Company.
Some radical groups in Bolivia look back with nostalgia on the expulsions of those giant foreign concerns and would like to see the same thing done to the multinationals that now dominate the energy sector.

Schiff, this is not our CHP. This is a BP subsidiary working primarily in Bolivia.

We are an independent and working in Columbia and Paraguay.

(I hope others don't get confused and think CHP have this problem)

WDIK, PDYOR.

camlad

first buyers at 8p

and one at 8.2

WDBM high bid, EVO on offer@8p, it only took 50k for him to flee last time.

Nice steady rise. This weekend will be interesting.

Good day but nice to see another push after lunch!

Great end to the day!

share sure,,great day for chaco,,i also noted a late move at mrp,good news is long overdue.

Very pleasing finish to the week. Hope Monday will produce the RNS.

Any thoughts on next week!

And any comments in the weekend papers?? Given the additional volume over the last couple of days I'd like to think that Monday will show a strong start (and RNS??)...who knows.

Fingers crossed.

Good luck to all holders for the coming week!