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 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.

ss,

It came from advfn.com. Lots of good posters ref CHP over there as well.
I wasn't questioning your info. I have similar figures in mind although I believe your 100m barrels might be a little conservative!
IMHO DYOR

cc

You may be right re barrels I quoted; 100m was the lower figure of all that I have picked up on through various contacts. I don't want to be accused of ramping. I just think that this stock is going to be really fantastic when others appreciate what CHP's mgt. may have achieved.

Sharesure,

Take a look at KYS, its Vice chairman is Simon Cawkwell he bought 700,000 shares a few months back up 10.75% today, seems a interesting share. P. S. i also hold CHP.

aldwickk, Thanks, I will. Do you have any other info. to share on it, if not on a thread, via an email?
Re CHP: it's holding its price; an RNS must be on its way this week

Hi all,
After reading your comments, I could not resist the temptation, I bought some more again today.

doitalldoctor, reckon your timing might be just right.The sp stays well at its new highs, suspect because CHP's house broker seems to be acquiring stock; a very good signal. A good many on this thread will be amazed if there is no announcement either tomorrow or Friday and that when it comes it will have been worth waiting for.

One way traffic this morning. All Buys. Assuming the 100m barrels, the upside given the estimates provided yesterday for the price of oil in the ground and at the well head are huge. This could fly to 25/30p on any confirmation and once the oil is flowing just take a look at what has happened at GED which also has Colombian oil.

Surprised there is not a bigger tick up this morning SS. How many shares are in issue?

pth

A good question, pth. From memory around 370m. But there may be a few other warrants or options around, although insignificant for most purposes. I would expect CHP to need to place a few more for dev. finance - I think that is what their broker has been doing this week. With the sort of potential this has it might be reasonable to expect those placings to be at a slight premium to the sp, and maybe that is what is taking the time before any RNS. I would have thought that if institutional support is difficult, then a large oil co., like Petrobas, would be more than happy to step in but poss. that would give CHP less control going fwd.

Sharesure, you have email.