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 how come the spread is so narrow at the moment,any thoughts.

pisces, don't know.There are around 370m shares in issue and I think 8 MM's so this is a fairly liquid stock. The current shake out might be a touch un-nerving for some; I doubt the weakness will last the day. I think some news is likely to come out any time soon; whether it comes out before the weekend I can only guess. My money would be on sometime next week, but if it is as good as I reckon it could be then I wouldn't want to risk being out of it in case an RNS is suddenly released.

Hi SS - I have used the weakness to buy some more - thought I might have missed this opportunity.

Its ok, now they can release the RNS!!!

Baza

Baza, I wish they would!

Sharesure, it is good to see that your calculations match my own work.

I have come up with an immediate share price of around 26.5p using conservative figures once the expected news breaks.
Not only is this a cracking short term play for an immediate significant share price lift, but it has the added bonus of a 10fold+ return on your investment before Easter 2006.

One only has to watch the price action to know that a very big deal is due to be announced. I am however surprised that the less shrewd investor is still fooled by the pre-weekend shakeout. I would definately not be a seller at these levels.

May I add that WDBM has yet again made himself high bid, those that follow Chaco will know the significance of that.................

to buy or not to buy :?

Can drop to 4 - 5p if false rumour or could jump to 26p if rumour true.... grrrr
Pretty risky

sidtrix, You need to see what the company's brokers are doing. Mostly always higher on the bid these last few weeks; they'd be pretty stupid if they thought there was bad news around, chinese walls or not. And in my view they aren't stupid.

sidtrix

Risky - but a good risk/reward ratio by your own admission.

If 50% of the time you win and 50% of the time you lose money on your stock-picking, you need an average ratio upside to downside of at least 2 to 1, say, to make a profit. You can stop loss the downside, but cannot force upside to be always twice. So to up the odds in your favour, you only trade when the upside is 3 X the downside, for example.

Buy at 7.50p - risk, you lose 40% - reward you make a profit of 250% - pretty good ratio in excess of 6.

I'm even convincing myself I should be in! I remain intrigued by Sharesure's and MPH's numbers and the sense they know what they are talking about.

sd

Stockdog, surprised you aren't yet in this one. The weakness so far today is in my view all down to many, but mainly small, holdings being sold by folk who didn't want the carrying cost over a weekend. Also they will have made a profit this week.
The risk then is that this stock shows up on the chart of major movers for the week, and then gets picked up by the weekend press which would prevent getting back in again in early next week. A few of us who follow this stock closely believe an RNS on the Colombia position over CHP's TEA legislation applications is due very soon. Being out of the stock at this time risks quite alot in my view.

Cheers guys.....jumped in with a small holding :) hopefully this one will not get away from me like YOO and ARX did!

SS let them know that they can officially release the RNS now, I am waiting ;)

- Sid

Rn't we all !
Baza

Sharesure, thanks for your concern. I'm tempted for a short term trade - need to see what I'd have to dump to free up cash, having spent my last apre pennies on DGT's dip this morning.

Have a good weekend everyone.

sd

Sunday Telegraph, page 9 Business Section has picked up on Chaco's enormous potential in Colombia. Very timely. Given that an announcement from CHP this week looks highly likely, if anyone is thinking of adding to their holding, they'll need to be in the market early on monday morning. This should be an excellent week for Chaco.

ss,

I saw that too, shame they quoted us at 2p though!

cc

Sharesure, you've been saying every week for 3 or 4 weeks that CHP's Colombian RNS announcement was imminent. why is this week highly likely?

camlad

camiladasi, you were previously posting on the other bb that we are all idiots over here lapping up everything Sharesure has to say.
Whats your view on the news item this w/end?

Hi Dibbles,

I don't believe people are idiots and have not called anyone that. Yes I do worry that some less experienced traders are believing what they read on a number of BBs. I offer an alternative view and I've consistently posted on various BBs my confidence in CHP but my concern that it is being hyped too much. (I've posted the same thing on this BB previously (see #99 and #101) and challenged posters to justify their estimates.)

Figures like 80p - 120p per share are being bandied around when the company currently has no production and no revenue; has a market cap of c30M ; and has assets of around 1.5M including cash of around 0.75M.

Let's be realistic. There seems to be no basis for such sky high SP figures - just vague rumours and innuendo from people who know people who heard something from ..............

Even today's Telegraph article says that CHP have "applied for some highly prospective territories [in Colombia]". This is in keeping with what CHP have achieved in Paraguay. The rights to e&p in promising geographic areas. (Not acquisition of existing 10,000 bopd production facilities.)

I am invested in CHP and expect to make good money on it over time - but I'm not risking any more than I can afford to lose. This is a highly speculative share at this time - as the Telegraph said "not for widows and orphans".

I will be very happy to be proved wrong and for this share to produce "instant riches". But right now IMHO yer pays yer money and yer takes yer chance.

WDIK, PDYOR.

camlad

I'm with you Camiladasi - a T&E licence is one thing, an Exploration licence is another and then you need to get a Production licence. There is no pot of gold waiting at the bottom of a well for CHP without a lot of hard work studying 2D and acquiring 3D seismic, then drilling test wells and doing core analysis all of which will create a big demand for fresh funding between now and then. If all that goes well, then another round of funding will be required to ramp up for production in about 2 year's time. Any one who already has reached the Exploration stage is not vulnerabkle to having their licence revoked by the authotities.

That said, there is so much hype in the air about this one, and RNS announcing a Columbian JV and/or poaching a T&E licence may well cause a substantial leap in price - maybe double of more quite quickly. Then I expect it to drift downwards, maybe back to square one. If you're a very nippy widow or orphan you can maybe make some money and good luck to you. But it is high risk to get this high reward.

Will be watching the screen tomorrow at 7am!

sd

Moving nicely this morning, topped up, so fingers crossed.

Still watching!