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.

Not sure that the identification of sell and buys is that accurate some of the time. The MM's are playing games on this one at the moment but think Tuesday will produce a clear way forward. This has the right 'feel' about it.

Great end to the week on CHP; the BH week should see this take off. Of all the oil plays around at this time this should turn out to be one of the highest flying; it has a great concept for growth. To sea why read the RNS' re TEA agreements in Colombia.

Monday's Daily Telegraph's list of best performing shares by sector should show Chaco at, or near, the top of its group. One week further on and there should be no doubt about the clear winner. This should be the week when a new word enters the English language: to Chaco - to outsmart by clever timing and imaginiative use of new regulations.

This share looks very exciting - in fact, a little too exciting for me. I was partly too timid and partly without anything I wanted to sell to create spare funds to get in at the 5p level when it was first drawn to my attention.

On fundamentals, securing a JV deal in Columbia will be no more than the start of a long hard slog to find oil requiring a great deal of fund-raising along the way. There is an equally daunting journey ahead in Paraguay before oil could possibly flow. The oil price may not have reached its zenth for this decade by a considerable distance yet, however it's currently high enough not to be able to drag any totally speculative share prices any higher IMHO. (cf, FOGL who's SP has been moving sideways within the 90-135 band since oil prices were $50 per barrell).

Looking at the chart, I would refer you to the below link which illustrates a classic bump and run formation. CHP is not so accentuated, since its lead-in trend is not as steep as classically demanded, but it is well overbought on most indicators currently and I would (were I a shorting man) be preparing to sell after the good news you all anticipate, hoping to catch any final lift, or immediately if none was apparent. To compensate for its lack of classically steep enough angle of lead-in and bump, it has now developed a tertiary precipitous jump up, way above even the recently accelerated channel. I expect over the weeks following the fabled RNS to see it decline quite sharply at least to the March-June trend line and possibly through that in the short term - that for me would be the buying opportunity. If there is oil in them thar hills, then there is time enough to recapture today's high ground and make a much less risky profit.

Good luck and congratulations to all those who got in at 5p or less, especially if daring enough to get in at 3.5p. My sincere advice is to take profits now, or very soon. Remember the famous investor John Templeton who ascribed his vast fortune made on the stock market to "consistently selling too early"!

DYOR

SD

http://stockcharts.com/education/ChartAnalysis/barr.html

Stockdog, I think you have missed the significance of the TEA legislation. A company can effectively take over a licence where oil has already been discovered but not exploited at the speed the Colombian government expects. The reasons an existing licence holder may allow themselves to lose their licence is because the find may be small by their standards but very significant to a company like Chaco. There are various rumours about which large oil companies may have allowed this to happen to their assets; but Chaco's timing in going for areas under the TEA legislation during July/August (traditional holiday months) may prove to have been inspired. Wait and see. Whether shareholders should sell on the ews in this case might need careful thinking. Whilst it is often good advice it is not always.

I'll watch with interest.

If the Daily Telegraph listed Chaco in its AIM companies it would have had a new 2nd place company for this year, Chaco! At the present time it, and therefore its readers, probably doesn't even know it exists. That is an oversight which should change this coming week.

Sorry but cant find it on there list under Aim reg shares looked this morn same as griffin( cant remeber seeing either of them during the wks gone by) only time remember seeing griffin when they had somthing to mention re shares & Co.

Parkin. Exactly. Don't read the Telegraph for financial coverage anymore. The Times quotes both CHP and GFM.
Anyway I think tomorrow should be a fascinating day for CHP. If not then it is only a timing glitch in my view. This mgt. is going to provide investors with the next 'Cairn Energy' CNE. (30p to 15.40; sold slightly too soon as they have gone on to 17+). Trust the mgt. team and on this one you should be rewarded in Spades.

NEW YORK (AFX) - Crude and oil product prices struck new record highs in
electronic trade Monday, as a major hurricane threatened production in the Gulf
of Mexico.
Front-dated crude futures were recently up $3.13, or 4.7%, at $69.26 a
barrel, having touched $70.80 earlier in the session, the first time the
contract has traded above the $70 a barrel level.
Meanwhile, natural gas futures rose a staggering 17% to $11.48 per British
thermal unit, and earlier climbed above $12.
Unleaded gasoline futures rose 20 cents, or 10.4%, to $2.128 a gallon and
heating oil jumped 14 cents, or 7.6%, to $1.98 a gallon.
Traders have been eyeing Hurricane Katrina's progress for the last week and
crude for October delivery struck a peak of $67.95 a barrel on the New York
Mercantile Exchange Friday to mark the last intraday record for a benchmark
contract.
But prices dropped $1.36, or 2%, late in the session to close at a three-day
low of $66.13 as fears abated.
Over the weekend, the storm - which late last week had been classed as
category 1 - gathered ground and hit land early Monday as a category 4 or 5
storm.
Gulf of Mexico and onshore oil and natural gas facilities had closed ahead
of the storm, a threat to facilities at Port Fourchon, La., near New Orleans,
which handles around one-sixth of U.S. oil supply, and rigs in the Gulf of
Mexico.
Agbeli Ameko, managing partner at First Enercast, said crude prices could
push toward $75 a barrel today, while natural gas may move toward $12 per
million British thermal units.
The hurricane will have a significant short- and long-term impact on energy
markets, impacting production off shore and on shore, and shutting in refining
and processing facilities. The Minerals Management Service will report shut-in
statistics at 2.00 p.m. Eastern Time.
As the shut-ins persist, increasing winter supply concerns, the potential
for $80 a barrel crude and $15 per million British thermal units natural gas are
realistic, said Ameko.
"Katrina is approaching as a category five hurricane at a time in which the
supply and demand is in a delicate balance" he said.
The long-term impact on supply will make the market vulnerable to winter
price spikes if temperatures are colder than average, he said.
The sharp spike in oil prices sent stock futures sharply lower. Dow futures
were last down 35 at 10,372, S&P 500 futures were down 3.90 at 1,202 and Nasdaq
100 futures were down 8 at 1,555.50.
Energy shares, in contrast, rallied strongly. Exxon Mobil was last up 1.6%
at $59.35 in premarket trade on Instinet. Valero gained 3.5% at $92.50,
TotalFina added 0.8% to $126.84 and BP was up 3.1% at $68.15.
In the oil services sector, Schlumberger was up $1.7% at $83.50.

No announcement today is not significant. I think the comments elsewhere that the institutions are being seen to get the development funds are accurate. I deduce from that that CHP has got the licences in Colombia and once this process has been completed ( two days?) an announcement will come out and the sp action will start

Sharesure, I think you have hit the nail on the head! News today or tomorrow!!!

Dipped my toe in with these today.
L2 looks interesting 5 v 1 this morning.
Good luck all
pth

What would anyone with experience of the oil industry say is the value of approx. 100million barrels of oil in the ground in say Colombia, and the value of the same amount at the well-head? That is what I think we are looking at with CHP. I have had the figures of $7.5/barrel and $45/barrel respectively. The importance of knowing those two values is, in my opinion, the immediate effect on cap. value and therefore sp (taking some account of say up to 20% dilution from institutions funding the well development) and the effect down the line on sp, say in 6 months. The cap. val. of CHP on the basis of those figures looks huge, but I would be interested in the views of others.

Re last post from me, anyone with experience of GED, who are also pumping oil in Colombia, might have the best ideas of what potential we have here. Comments TODAY would be really appreciated.

Sharesure,

I've not had this situation before, waiting for such an important RNS. I like you have reason to believe we could be lookin at something special here. In your experience do you think the RNS will be in the close of play, i.e 7am or could it literally be delivered anytime?

cc

Cleverclogs, I wish I knew; I have heard there is alot of activity on this at CHP's house broker, William de Broe, so presumably when they have the institutional undertakings for the oilwell dev. finance (?6m) then I guess they will produce an RNS.
For the immediate, I really would like someone with better knowledge on oil to give some views on posts 143 and 144. When I do the figures it seems to come up with a huge cap. val. But am I on the right track with the assumptions?

sharesure,

Your questions were asked on another bb and this is the reply,

The company have a 30m market cap. I'm unsure of current shares in circulation. Is it around 400m? On that basis, and assuming a dilution of 20%, that will take the revised shareholding to around 480m.

Assumptions from here on in are huge.

Let's assume firstly, that the oil at well head is producing, the field is established, at least in part, and that CHP will have a proportion of this. Let's assume that this proportion is a third, since the figures are then a lot more conservative than is suggested above.

Furthermore, let's assume that the field is not fully established, and let's take say 2.50 a barrel SP for the field. 33mbo x 2.50 equates to 82.5m cap. Add to this the Paraguay element currently factored into the SP at 15m, and we have a potential 100m market cap company. This discounts completely, the additional field noted in the above post at 100m barrels oil in the ground. This all suggests the potential for an SP of at least 20p and potentially much higher. Another unknown here, is the Columbian Government position, and any profit share negotiated

Massive assumptions above, and loads of unknowns. I hestitate to post, since these figures are not far off meaningless. It serves to illustrate the potential of a deal though. If the assumptions made above hold true, and this becomes a long term hold, or at least until the fields are properly established and producing, there is considerable further upside.

All that said, is there any truth in the information provided, or is it entirely speculative??

Cleverclogs, thanks for that. Which board did you get the calcs. from? As for your question re truth in the information, I am as confident as I can be without being made an insider or the sources infringing any regulations.

Sharesure Hi, that post came from Tonester on advfn.
He is one of the posters I told you about that appeared a couple of weeks ago due to a reliable source.