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.

WDBM high bid

WINS lower offer

Thanks , 2 top ups today, may wait for next week to see which way it goes.

L2 1 v 2 ; 14.25 v 14.5

L2 2 v 2 ; 14.3 v 14.7

im in too and hoping for the best, hope it doesnt turn out to be like PET where everybody kept saying news should be out soon and it just didnt come (well for many many months anyway).

This is money:

"Chaco Resources closed 2.27p up at 14.52p after the company said it has raised 1.5m before expenses via a placing of 13,636,364 new shares at 11p each.

The Aim-listed oil and gas explorer and developer focused in South America said the placing was made to satisfy demand from institutional investors and will provide the company with further working capital. "

Looking forward to next week-this week was unexpected!

are there any new write-ups in the sunday papers today ?

I have been looking at CHP recently (not a holder as yet), as TAG has taken a license in Colombia and now its seems will announce a second one in Colombia this week (which means you might get news on CHP license applications this week). Colombia seems hot at the moment. Good luck to all.


From the Sunday Times 19th Feb 2006

"Oil firm lands Colombian stake"

"TAGHMEN ENERGY, an AIM-listed oil-and-gas exploration and production company that claims to be Britains biggest investor in Guatemala, will announce tomorrow that it has acquired a large stake in a second licence to explore in Colombias Middle Magdalena Valley. The prospect may contain up to 20m barrels of oil reserves, the company said. Last week, Taghmen won a licence in the same region for a prospect that is estimated to have up to 90m barrels. Taghmen, under chief executive Nicholas Gay, is in pole position to benefit as Latin American oil and gas markets are privatised"

any reason why you havent joined this PP???

From www.smallcaptrader.org/mydiary.html

"19th February 2006

As Jesse Livermore said: 'The big money is in the waiting!'

Yes, one of the greatest speculators ever to grace Wall Street made that comment in the early part of last century and it still stands true today. Last week I said that I was going to sit and wait on Empyrean (EME) to burst through that 100p barrier and it did - big time!! On Friday I took my profits at 142p after buying in only around three to four weeks ago at 52p. Not bad going eh?

Yes, EME is gone from the Fantasy Share Portfolio and although it may go much higher I decided to re-invest the proceeds in another stock, which could make EME look like a boring blue chip!!

The company is called Chaco Resources (CHP) and after buying in on Friday at 12.45p it touched 15.5p a couple of hours later before settling just under the 15p level.

The present board and management team are very impressive and it consists of the Chairman Jon Pither ex-BP and on the London Metals Exchange. Graeme Stephens, a geologist of 45 years experience who is ex-general manager of LASMO Oil in Colombia and Marathon Oil in Brazil. There is another geologist, non-executive Doug Jendry with 30 years experience in operations in Australia. Finance Director is Martin Groak who was one of the rescue directors for British Energy. There is also a director in Paraguay called Victor Valdovinos who specialises in the oil and gas sector out there. Last but not least there is Chairman John Morris.

So what about the company's asset portfolio? Chaco are involved in both Colombia and Paraguay. In Colombia there are three area of interest in separate oil blocks, one of which is a development project and the other two are exploration projects. The first of these is in the Putumayo Basin down near the border of Ecuador. The other block is in Llanos Basin in the Central part of Colombia. The third block, which hasn't been awarded yet - and which could cause the shares to go into overdrive! - is in the northeast of the Llanos Basin in Colombia. There are also three blocks in Paraguay, two of which have been awarded and one which will be awarded shortly. One block is in the northern basins of Paraguay called the Curupayty Basin and the other two blocks are in the southeast in the Parana Basin adjacent to Brasil. The equity in the Platanillo block on the Ecuadorian border is 25%, the equity in the Puerto Lopez Oeste Block in the Llanos Basin in central Colombia is 54%, and the interest in the block that could cause much excitement in northeast Colombia is 55%. In Paraguay the company currently holds 100% of the equity in each of the three blocks.

So why all the excitement in this new project? That new project is called 'Primavera' and the resource is thought to be around 400m barrels of oil, and if you assume the oil price to be in 55 USD on average then you start to get pretty excited about the potential valuation here!! Puerto Lopez has a Net Present Value of 49m USD based on a 10m-resource estimate. By multiplying that figure with 40 then we get an estimate value of around 220p Net Present Value per share for Primavera. When you add on all the other stuff you are then looking at a value of around the 26op level. Quite astonishing considering the shares are only trading around the 15p level and a piffling market cap of 68m.

On Friday there was a placing of around 13m shares with an institution raising around 1.5m before expenses. I checked this out with Financial Director Martin Groak and he confirmed that this was indeed an institution that had wanted the shares for some time. This then ignited the shares and caused speculation about the Primavera Project. It also appears that the Colombian Ministry will give the decision when they next meet - next week. Martin Groak confirmed that this will be on the agenda this month and a decision one way or the other will be given. It seems that they are only meeting once a month due to the holidays and they will meet this week.

It seems almost certain that CHP will indeed be successful, and just as EME went into overdrive as they drilled eagle North then I believe these shares will start to go crazy as we reach the date of that meeting. We will know within the next two weeks but it looks certain, in fact I believe that the fundraising and the Primavera application are linked! Chaco Resources could easily triple from the current 14.6p within the next couple of weeks. So I'm keeping my fingers crossed as this could soar big style.

Best of luck on the markets."

so pp after reading the above do you think you might join in??

Oracles, What kept you out of this for so long? Some of us have been highlighting this company for a few months. I have been predicting this as the 'Cairn Energy of South America.' It has all of the right ingredients. PS John Morris is chief Exec. and a very respected by those who are in the industry.
This coming week should be very exciting for Chaco but will be really only the start; Paraguay is probably where the biggest potential lies although 55% of the 400m barrel Primavera field in Colombia is a useful start.

cairn nearly 20--I'm dreaming that CHP will shoot that high eventually if I'm patient!!

Nicely put together reading on smallcaptrader. Nothing new from what we've all already been discussing, but good to see it getting a greater following. It does indeed look as though we're in for a fun few weeks.

Kivver, not yet, in the future yes, but not at the moment.

PP - might be too late if you don't jump in early this week??

tizzamark, I will be waiting for May/June time ;)

PP - any reason why then?