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.

No problem Grevis. The Libya deal could just be rumours, but would be an additional bonus. Lots of talk and rumour with Libya in General, but lots of oil there so any compnay getting a licence there would do well.

From This Is London:

"Chaco Resources was also a winner. The company, formerly called Gold Mines of Sardinia, reversed earlier losses after it announced it is proposing the reverse takeover of two Paraguayan companies in exchange for 27m shares in the company.

It also plans to raise up to 750,000 in a placing of more than 36.5m shares.

Chaco rose 0.37p at 2.52p."

From UK-Analyst.com:

"Shares in Chaco Resources, the former Goldmines of Sardinia, jumped after returning from suspension today. The shares have been suspended since September 3rd. The company agreed to purchase the entire issued share capital of Amerisur and Bohemia for a total consideration of 27,322,404 new ordinary shares. Chaco has also published an admission document setting out full details of a proposed placing at 1.75p to raise up to 750,000. The assets of the 2 companies are 47,000 square kilometres of the Curupayty and Parana basins and, if the government approves, the transfer of the right to explore. The prospect is interesting because the structures crosses the Bolivian and Brazilian borders where commercial quantities of oil and gas have been produced in geologically similar sections. The shares added 0.375p to 2.525p. Who told you about this deal first (months before Chaco 'fessed up)? Modestly prevents us from reminding you but we hope you took our advice."

Well done gavdfc. Good find!

From another BB:

A deal in Libya was rumoured before they were delisted, apparently a well known family in Libya had taken a large stake in CHACO Resources....DONT KNOW WHAT FAMILY but Gadafi's son invests on the London stock market could be a possibility. I will do some more research.

From Google:
Paraguay geologically is located in the southwestern portion of the South American Platform and the Brazilian Central Shield. Folded Faja Paraguay-Araguaia and the Crat of the Guaporhave their continuity from Brazil towards the Paraguayan territory; to the North of the Eastern Region one constitutes the denominated North Precbrico (Crat of the Apa river) and the South Precbrico (Crat of the Tebicuary river) to the South of the Eastern Region.

Two great river basins are pronounced both between cratones, one of them with intracraticas characteristics happens to the East, and is denominated River basin of Parana, the other of the pericratico type, call River basin of the Chaco is located in the Western Region and it extends to the South in Argentina and the Northwest in Bolivia.

PLINTH OF The RIVER BASINS Of PARANA And CHACO

The plinth of the river basins of the paleocontinente Gondwana is even a discussion subject, although yes it is established that the substrate of the River basin of Parana and the Chaco is constructed by strained of a precbricos land mosaic, highly diversified in origin and composition (Of Wit ET al., in Milani, 1997). This straining is made between 800 to 450 Ma and it is related to the Orogenia Brasiliana/Panafricana (Almeida & Hasui, 1983).

The belts of the Brasiliano/Panafricano Cycle constitute a set of river basins and orenos that include the continents African and South American, with a complex history tectonic, sedimentaria and metamfica, and accompanied by constant deformations in the surroundings of the craticos nuclei, allowing including the development of river basins associated this cycle of initial consolidation of the paleocontinente (Milani, 1997). For Branches (1988) the land strained one to the paleocontinente continues during the Paleozoico, with the acresi of blocks smaller or patagicos lands.

The acresi and collision of the different blocks in the course from geologic history are attributed to one prolonged convergent interaction of plates (Milani, 1997).

RIVER BASIN OF THE PARANA

The River basin of Parana constitutes a set of fanerozoico sedimentario/magmico filling, that geographically includes great part of Brazil, Paraguay, Argentina and the north of Uruguay, constituted by a succession of sedimentitas of continental and marine atmospheres, deposited in different intervals from the geologic time. The initial ingresi of the sea in the intracratico atmosphere moves the continental conditions to the limits of the river basin and from transgressions and regressions they determine the implanted environmental conditions in the inner subriver basins there.

The implantation of a great variety of subatmospheres of depositaci, probably is attributed to tectonic crustales throughout the active margins of the continent. The preparation of the river basin through the geologic time establishes a tectono/estratigrico context, related to tectonic events that control the subsidencia, the resurgence and the erosion, as well as the transgressions and regressions registered in the history of the river basin, within the intracratico design and positioning of antepa.

The beginning of the sedimentation of the River basin of Parana is registered from the Superior Ordovico, in Brazil (Milani ET al., 1996) like in Paraguay (Wiens, 1995), considering the beginning of the subsidencia in the Inferior Ordovico and finalizing in the Superior Cretico. The creation of space for the sedimentation would be related to the flexural behavior of the plinth of the river basin, produced by compression of the active margin of the paleocontinente and reactivated through the geologic time with cyclical characteristics, that alternate periods of accelerated and decelerated subsidencia.

The tectono/sedimentaria evolutionary history of the River basin of Parana is characterized by great cycles of sedimentation, with amplitude of tens of millions of years, denominated supersequences. In the sedimentario registry of the river basin 6 supersequences, each one of them represented by a rock set can be recognized, limited by surfaces of discordancias of interregional character. Of the 6 supersequences the three first correspond to transgresivos cycles and regressive paleozoicos and the three last ones are mesozoicas continental units and igneous rocks associated.

RIVER BASIN OF THE CHACO

The river basin of the Chaco like pericratica river basin is conformed by sedimentarias subriver basins, that present/display almost all their sedimentarias columns in sub-surface, filled up by Cretico/terciaria sedimentation, with exceptions of the northern subriver basins of Curupayty and Carandayty, that have outcrops of some of their estratigricas units and the Stops of the Chaco Central and Lagerenza.

Subuencas of separated Curupayty and Carandayty by the Stops of Big hole and Lagerenza presents/displays paleozoicas sedimentarias columns on a Precbrico/cbrico plinth. The subriver basins of Pirity (or Pirizal) and To pound separated by the Stop of Hayes, present/display a sedimentaria column of more than 3,000 meters of rocks of cretica age.

Due to intensive the stuffed Terciario/cuaternario, caused by the great sedimentario fan of the Pilcomayo river, the geolico/estratigrico knowledge of the River basins of Pirity and Pilar are restricted to works of geophysical and perforations associated to the oil exploration.

Looking good so far. Buys 869,682 v sells 93,531.

OnWar.com
Armed Conflict (over oil?)
Events Data

The Chaco War 1932-1935



State Entry Exit Combat Forces Population Losses
Bolivia 1928 1935 100 000 4 000 000 80 000
Paraguay 1928 1935 80 000 800 000 200 000

*****

Chaco War (1932-35), costly conflict between Bolivia and Paraguay. Hostile incidents began as early as 1928 over the Chaco Boreal, a wilderness region of about 100,000 square miles (259,000 square km) north of the Pilcomayo River and west of the Paraguay River that forms part of the Gran Chaco. The conflict stemmed from the outcome of the War of the Pacific (1879-84), in which Chile defeated Bolivia and annexed that nation's entire coastal region. Thereafter, Bolivia attempted to break out of its landlocked situation through the R de La Plata system to the Atlantic coast; athwart that route lay the Gran Chaco, which the Bolivians thought had large oil reserves.

Bolivia seemed to enjoy overwhelming advantages over Paraguay: it had thrice the latter's population, an army well-trained by the German general Hans von Kundt, and an ample supply of arms purchased by loans from American banks. But the morale of Bolivia's army of Indian conscripts was low, and Paraguayans were better fitted to fight in the lowland swamps and jungles, in which many Bolivians died of disease and snakebite as well as gunfire. Both countries had maintained military posts in the disputed region.

On Dec. 5, 1928, Paraguay initiated a series of clashes, which led to full-scale war in spite of inter-American arbitration efforts. Both belligerents moved more troops into the Chaco, and by 1932 war was definitely under way. In June the Bolivians seized Paraguayan positions in the northern Chaco and launched a successful attack in the central Chaco against Fort Boquer. In August Paraguay ordered mobilization and sent forces under General JosEstigarribia in their first major offensive against Fort Boquer, which fell at the end of September. Kundt was recalled by Bolivia, and he concentrated his forces in the south to attack Fort Nanawa, where there was heavy fighting for several months.

Paraguay formally declared war on May 10, 1933. Estigarribia launched a series of attacks along an extended front late in October and made such impressive gains that the Bolivian president Daniel Salamanca replaced Kundt with General Enrique Peranda. At the end of a three-week truce, Estigarribia renewed his drive (Jan. 9, 1934) against the Bolivian post of Ballivi, where from March to July the heaviest fighting of the war occurred. Ballivi fell on November 17, and Salamanca was forced to resign. Paraguay's advance continued into indisputably Bolivian territory in January 1935.

After Bolivian counterattacks put Paraguayan forces on the defensive, a truce was arranged on June 12, 1935. About 100,000 men lost their lives in the war. A peace treaty was arranged by the Chaco Peace Conference, which included Argentina, Brazil, Chile, Peru, Uruguay, and the United States. It was signed in Buenos Aires on July 21, 1938. Paraguay gained clear title to most of the disputed region, but Bolivia was given a corridor to the Paraguay River and a port (Puerto Casado). The war had caused disruption of the Bolivian economy, provoking demands for reform among the deprived Bolivian masses. Argentina was given the main credit for the settlement, and Argentine investors profited greatly from Paraguay's territorial gain.

Paraguay Energy Ministry to Sign 12 E&P Contracts
BNAmericas Friday, September 24, 2004


Paraguay's mines and energy ministry will sign contracts in the next few days for 12 hydrocarbons exploration and production concessions totaling 26 million hectares, deputy minister Htor Ruiz told BNamericas.

"Formalizing these contracts will allow exploration to begin in the area from the Chaco [in the northwest] to the eastern part of the country," Ruiz said.

At August 2003 the country only had 40,000ha under concession in a single contract.

"We have asked each company to inform us about which entity is giving them economic and financial aid," he said. Companies giving such assistance include Williams de Broe PLC, Thorpe-Beestom Investment, and Mindley Investment, he added. UK-based CDS Oil & Gas recently formed a joint venture with local company Cano Martez and is providing financial assistance for the Paraguayan company.

CDS has also expressed interest in partnering with Morrison Mining for an exploration concession on the Boquer block. Other companies to sign agreements include Paraguay Gas, Boreal Petreos, Aurora Petreos and Amerisur.

"Those are all local companies with foreign agents," Ruiz said. Foreign companies that will sign agreements include HA & ER Exploraciones, Pilcomayo Petreos, Hidroener Consultora, GuaranExploration, and Union Oil, with technical and financial assistance from Brazil's BOYG and Andrade Gutirez.

The ministry recently recovered all of the original information related to 18,000km of seismic shot by US companies that had explored Paraguay for 40 years, as well as data on 24 wells, Ruiz said. "That [information] is highly valuable - mostly for technical reasons, but also for economic ones because it is work that does not have to be done again," he said.

Recovering the data will allow companies to begin work, he added. "That new information will be freely provided to each of the companies, making the sector more attractive and possibly increasing the number of companies interested in investing in the country," he said.

Hi Grevis,

Thanks for the posts on Friday. Looking forward to the week, hopefully a good one!

Interest waning on this one? Has anyone sold?

This is starting to look very interesting.

Taken from UK analyst last night.

Shares in Chaco Resources have been pretty strong of late and rose a further 0.125p to 2.575p today after top financial website t1ps.com said that it appears that there was an institutional buyer who cleared the entire stock overhang and more. It also said that it heard 3 fundamental rumours. Firstly, it said that 2 two senior appointments with superb CVs will be announced soon. Secondly, it said that Chaco was speaking to a South American major about possible joint venture agreements. And thirdly the website reported hear a wild story that another UK quoted resource minor is trying to buy a stake in Chaco

jayes

they must have all sold, nobody seems interested up 6.8% today, RNS soon?

Another tick up something brewing.

14% up news soon imo.

Are you lonely on this BB Forest? Will noone play with you?

Sold my small holding in these a few weeks ago cos I got frustrated with nowt happening. Tempted to get back in now tho......

Hurry!!

400,000 @ 07.59.11 was a buy not a sell.

Got in at 3.36p, just in time. Above that now. Nice.

PRESS COMMENT
FT
THE LEX COLUMN comments on BHP BILLITON's bid for WMC, UK hedge funds, P&O,
Italian banks - REDROW (on a well-deserved premium to the sector of 6.6 times)
Express
ACCUMA (dealers expect a strong debut today) - ARDANA (also set for a healthy
debut) - AFREN (also set to make its market debut at 20 pence) - WHO'S DEALING:
ARRIVA (chief executive sells shares after exercising options) - SHARE WHISPER:
CHACO RESOURCES (speculation it is eyeing up possible prospects in Colombia) -
BROKER'S VIEW: ANITE (Shore Capital buy)
Independent