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.

is news coming lots of buys.

Andy, My comment was tongue in cheek. As Alfred has pointed up, #1580 is worth reading. I have been told to expect between an sp of between 45p-50p after Primavera is officially announced. Maybe the market will have different views since to date there has been a lot of caution on this one. Maybe winning 3 out of 3 applications in Colombia will encourage folk to believe more in what is going on here. For my money, it is Paraguay where the stock will take off - an oil discovery there + partnership with a 'major' and CHP's sp will move ahead spectacularly.All possible in 2006.

Sharesure
I thought most were saying 20-25p after the official announcement?

Maybe the others are airing on the side of caution, and hoping to be pleasantly surprised. So far the market response to their deals would suggest that that is a correct approach, but sometime soon the initial market scepticism will give way to the company being given more credit for achieving what they set out to do + more.

.....and that is the key point to this share. It's been trading at a hefty discount for too long now. The management are delivering what they say, and Graeme Stephens is helping to steer the ship.
The more chaco delivers the closer to true value we will start trading at.

Well I'm in at 12.35p, I hope your patience is rewarded and thanks for an informative thread.

Hey Andy - welcome aboard - be lucky

Next week will be interesting-good luck to all regular and new holders!

I have jumped on the bandwagon too. i am only a penny player so hopefully they will be lucky for me too.

Chaco Resources PLC - Placing of Shares


RNS Number:5712Y
Chaco Resources PLC
17 February 2006


CHACO RESOURCES PLC

('Chaco' or 'the Company')

Placing of Shares

Chaco Resources Plc (the 'Company'), the oil and gas explorer and developer
focused in South America, announces that it has raised 1.5m before expenses,
through the placing of 13,636,364 new ordinary shares at 11 pence per share. The
placing has been effected to satisfy demand from institutional investors and to
provide the Company with further working capital. The placing is conditional on
the new shares being admitted to AIM and admission is expected to occur on 21
February 2006.

Further details on the Company and its projects are available on the Company's
website: www.chacoplc.com

For further information contact:

Martin Groak, Finance Director
Chaco Resources plc
Tel: 07949 209 301

alec this will be 25p very soon.vog 300p plus.

Interesting RNS "The placing has been effected to satisfy demand from instituitional investors...."
sounds very positive, RNS re placing don't usually say this, just for 'working capital...."

Superb, Instututions who missed the placing at 6p are still clambering to get in at 11p, a good vote of confidence.

What a nice coincidence that chaco have just raised 1.5m when the Primavera block that we are waiting on requires funding of 1.25m.............

Its all sounding very positive

Looking forward to next week even more!

The opposite view might be that they are being opportunistic after the recent rise. If good news is imminent, why not wait and get the placing away at a higher price?

I hate to disagree with you there canary9: look at VOG placing at what was it 78p? (the one back in December before the mega rise), AFTER it'd announced the find of 0.5tcf gas....I think sp was then at 1 level.
(I hope I'm right here) as I'm thinking of topping up, doubling my current holding, considering that placing was at 11p, it would seem 'unlikely' that we'd sp staying at 12p level for too long. All comments/debate welcome.

Canary9, that would not be a smart stunt to pull; institutions can be very vindictive. I would expect that the institutions were told what is in store; a 10% discount is very slim and particularly on a stock that has already risen reasonably steeply - of course not steeply enough.......yet!

Canary, the Primavera licence is probably issued subject to Chaco showing evidence of the correct funding in place, in this case 1.25m.

In other words, "The licence is yours, show me you've got the 1.25m and I'll sign it off"

Sharesure - agree with you, the institutions know they are expecting 24p upwards. All looking good for the near future.