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.

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.

Sharesure hi,bought these at 6p only 2 weeks ago now sitting on 3k profit with a very tight stop loss,cheers mate you`ll have to start charging commission for your share tips.Could you give me a brief lowdown on chp history pretty please,and any comments why you think there is so much potential.

Cheers pisces also a stanelco holder.

pisces, see earlier threads for some of the background + read the RNS', in partic. the small piece re TEA legislation in Colombia which is tucked away in one of them. It looked insignificant; I do not think it is. I have been a buyer at these levels today.

SS

Bought these yesterday, but not at all familiar with the daily SP quirks. Seems to be significant buying pressure today, however the SP is stuck. Have we got an overhang or do we need much bigger volumes to get it moving?

many thanks

pth

pth, The real pointer on this is that Wm de Broe, CHP's broker, has concistently been the highest MM on the bid. I don't think this is a case of being suckered onto a punch; they potentially have some very good news if the Colombian deals have been done. I am sure we are close to hearing that but this is the holiday season, there are time zones involved, so potential for slippage on timing. The other interesting part is that the price has recently always ended at its high for the day. I have bought two more chunks of stock today.

Sharesure, any idea whats delaying news?

Dibbles, Only the need to get the documentation around four countries and time zones. Today is bound to be a little testing on the sp as there will be folk who got in at the start of the week and have had a 33% rise and don't want to hold over a weekend. I bought two more chunks of stock yesterday at over 8p; obviously with hindsight and no announcement just yet it would have been better to buy today but when this news comes out, if my info. and calculations are right, this should immediately treble and then become a 12 bagger within 6 months; and that is just on Colombia. Paraguay would be in there for nothing.

Sharesure, thanks.
May take opportunity to top-up myself if daytraders take us lower.
No news is good news and all that.