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.

It might just get there at a push - then again it might re trace as daytraders sell off. Or it could just stay wher it is - there that seems to have covered everything.

Sorry - bored - just being playful

RNS tomorrrow ?? - or do you think this is a VOG reaction

Thanks dibbles, I hope it will be a pleasant and prosperous journey, I just hope I'll know when to take the money off the table, as a long term holder (still) of PET, I had the opportunity to sell @ 136p, more than 3 x what I paid for them. Greed and Fear eh!
2517

If we get news soon should easily break 9p barrier!

We have been talking about news for weeks now - since before Xmas. All this activity bodes well - just hope we get something soon

If its good news, that is... ;-)

Agreed Tony, Agreed

I am not an experienced chartist but the pattern for the last few months looks quite interesting, in that the retreats from the tops are themselves to a higher level each time.

You experienced chartists out there: what do you think?

The breakout above November's downward sloping flag c/should take us to 9.25 being the difference between the flagpole low of 6.25 and the peak of 8.50 (eod) = 2.25 higher than break out level of 7.0p. However, I think this v. young share is being driven by news and anticipation thereof, rather than chart influences of a more mature share.

sd

SD

I am sure you are right. The only thing that concerns me is the old adage, 'buy on the rumour, sell on th fact'. People can get carried away by their own (and other 's) expectations.

blackdown, always remember 'rules are for fools, and the guidance of the wise!' Read carefully what the news is about on this one when it comes out since, even if it retraces after an initial burst, it is likely that the medium and long term will be well worth it. I am expecting to hold this stock for at least a couple of years since I believe it to be capable of being the 'Cairn Energy of South America'. The ingredients are all there, particularly beyond the third Colombian deal; the next real push for the sp after that should come from the Paraguayan interests (funded by oil revenues from Alea etc.) This may sound too bullish for you; I think CHP merits the benefit of any doubt at this stage.

Stockdog

As a fairly new pi to oil stocks, could you summerise the main reason for the stratopheric rise in cairn and could this even remotely be applied to chaco.Thanks in anticipation

I am trying to find out when did they start drilling and how many days wait needed for the results,Can anyone please shed some news on this ASAP-very keen to find out before its tooooooooo late. many thanks

blossie
I have no knowledge of Cairn which I have never followed, so I'm sorry I can't help you. As to CHP, many regular posters here may remember my negative stance not so long ago as the SP rose from 3.5 to 8p - then fell again to 6.5. Then there was a significant announcement, confirming what Sharesure and others promised, which removed a good deal of risk for me and I bought in at the end of October, paying 6.65p. Columbia I know a little from my holding in Emerald Energy, Paraguay only from what I read in connection with CHP.

The risk in CHP is still relatively high, because no well has been drilled and no oil is flowing, so it is highly speculative, reflected in my current underweight holding, but I do believe it is capable of doubling in price in the short to mid term and even demonstrating sufficient solid value to becme a more substantial core longer term holding. If I'm wrong, I have a fairly tight stop loss 20% below today's price where I still break even on my investment - the first rule of investing being not to lose money!

Currently I see it as a "pair" with Emerald where my exposure risk to Oil in S. America is splt between two companies - one producing, the other explorative. By having a material reason to follow both, I get a 3-D perspective on this region of this sector whilst hedging my risk that one or other will collapse unexpectedly. Both are capable of good upside, albeit over slightly differing timescales.

Enough waffling - I think I have successfully avoided answering your question by now.

good luck and DYOR MUYOM

stock

Stockdog,

...I see it as a "pair" with Emerald - one producing, the other explorative. This is exactly my position on much the same thought process. Of course they both could come good, or not!

greyhound

sharesure

would you possibly give your imput re what made the cairn story? Many thanks

Boris

There is no 'Cairn story'.

What is refered to is the possibility that Chaco could develop from AIM to FTSE 250 or more within a reasonable time period.

IF they can win 25% or more (hopefully 55%) of Primevera, (which chaco's man on the ground, Graeme Stephens, believes has 400 million barrrels of easily accessible oil) then CHP's market capitalisation could, over time, grow to be that of a monster company.

This is ignoring Paraguay, which has the scope to be even more interesting.

This is my opinion only, though I know many others who share it, DYOR

Alfred

blossie
the short answer is they found oil - a lot of it! there's no substitute for it ultimately.
sd

I am starting to quite like monsters -

500k mm purchase @ 9p

Boris

By the way, this is a real gem.

Alfred