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.

Boris

By the way, this is a real gem.

Alfred

Blossiedog - in answer to your query, Cairn had great mgt., good local connections, picked up assets that the oil majors were not exploiting and delivered on its forecasts or more usually exceeded those forecasts. From what I have seen so far of Chaco's mgt. they are following the same path. Apart from that they need some luck which Cairn had. I think Colombia has gone past the stage of needing that but Paraguay is still at an early stage, but could have immense potential. Anyway, before someone accuses me of being too bullish I do not intend to post more but let events unfold.

another 150kmm purchase @ 9.1

They are struggling

Getting squeezed now and perhaps riding on the back of VOG - the money's got to go somewhere!

EVO and WDBM high bid at 9p

stockdog: found oil? wishful thinking, or do you have some inside info ?????

MG's PR meetings are paying off at last-many said a waste of time!

johndunn - comment was re Cairns not Chaco!
down boy!

bodeng, I hope the sp is rising on something more substantial than just pr!

sd

Plenty of size going through at 10p

Someone paying 10.5p for 49k.

This is on it's way now - someone knows something, other than rumour I'd have though?!

I guess news must be coming very soon greyhound the way this is powering ahead.

MM's are going to have to try and shake the quote a bit to get some sellers who haven't done there valuation homework.

tried to add just now but can't get an online quote at the moment. the sp is moving so fast it must be news rather than rumour IMO. very nice whatever!

Just some quick back of envelope calculations for this deal.

If the field contains 400m barrels as rumoured and chp have a 55% stake in return for $1.5m drilling funding.

Then this deal is worth: (using varying values of oil in the ground depending on your personal preferred valuation of oil in the ground)
220m@$10pb = 1,294m
220m@$5pb = 647m
220m@$3pb = 388m
220m@$2pb = 258m
220m@$1pb = 129m

The current market cap for Chaco at 10p is 47m

Thanks MPH

Gentlemen

Thank you all for your comments.Much appreciated.I am quite heavy into aminex and was not up to speed what was happening over here.Thanks again

Boris

mph

Many thanks for your realistic future valuations.

Remember, even if we only get 25% of Primevera it is still a fantastic result.

Good luck to all lth's and don't be tempted to sell to early.

Alfred

Just for info as this will crop up again - shares in issue as at 21.12.05 493.83m

have added, sat watching this fow weeks, bit here bit there now look, hope you guys have assessed correctly

ellio, many of us are of the same feeling with respect to the potential offered here. However you should make your own mind up, if you haven't already do have a look at the AGM presentation on the chaco website for more background and make your own conclusions. CHP

Nice to see a close above 10p today, I must admit I half expected the MM's to drag it back under to spook a few. It didn't happen which is very positive.