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.

From another BB:

A deal in Libya was rumoured before they were delisted, apparently a well known family in Libya had taken a large stake in CHACO Resources....DONT KNOW WHAT FAMILY but Gadafi's son invests on the London stock market could be a possibility. I will do some more research.

From Google:
Paraguay geologically is located in the southwestern portion of the South American Platform and the Brazilian Central Shield. Folded Faja Paraguay-Araguaia and the Crat of the Guaporhave their continuity from Brazil towards the Paraguayan territory; to the North of the Eastern Region one constitutes the denominated North Precbrico (Crat of the Apa river) and the South Precbrico (Crat of the Tebicuary river) to the South of the Eastern Region.

Two great river basins are pronounced both between cratones, one of them with intracraticas characteristics happens to the East, and is denominated River basin of Parana, the other of the pericratico type, call River basin of the Chaco is located in the Western Region and it extends to the South in Argentina and the Northwest in Bolivia.

PLINTH OF The RIVER BASINS Of PARANA And CHACO

The plinth of the river basins of the paleocontinente Gondwana is even a discussion subject, although yes it is established that the substrate of the River basin of Parana and the Chaco is constructed by strained of a precbricos land mosaic, highly diversified in origin and composition (Of Wit ET al., in Milani, 1997). This straining is made between 800 to 450 Ma and it is related to the Orogenia Brasiliana/Panafricana (Almeida & Hasui, 1983).

The belts of the Brasiliano/Panafricano Cycle constitute a set of river basins and orenos that include the continents African and South American, with a complex history tectonic, sedimentaria and metamfica, and accompanied by constant deformations in the surroundings of the craticos nuclei, allowing including the development of river basins associated this cycle of initial consolidation of the paleocontinente (Milani, 1997). For Branches (1988) the land strained one to the paleocontinente continues during the Paleozoico, with the acresi of blocks smaller or patagicos lands.

The acresi and collision of the different blocks in the course from geologic history are attributed to one prolonged convergent interaction of plates (Milani, 1997).

RIVER BASIN OF THE PARANA

The River basin of Parana constitutes a set of fanerozoico sedimentario/magmico filling, that geographically includes great part of Brazil, Paraguay, Argentina and the north of Uruguay, constituted by a succession of sedimentitas of continental and marine atmospheres, deposited in different intervals from the geologic time. The initial ingresi of the sea in the intracratico atmosphere moves the continental conditions to the limits of the river basin and from transgressions and regressions they determine the implanted environmental conditions in the inner subriver basins there.

The implantation of a great variety of subatmospheres of depositaci, probably is attributed to tectonic crustales throughout the active margins of the continent. The preparation of the river basin through the geologic time establishes a tectono/estratigrico context, related to tectonic events that control the subsidencia, the resurgence and the erosion, as well as the transgressions and regressions registered in the history of the river basin, within the intracratico design and positioning of antepa.

The beginning of the sedimentation of the River basin of Parana is registered from the Superior Ordovico, in Brazil (Milani ET al., 1996) like in Paraguay (Wiens, 1995), considering the beginning of the subsidencia in the Inferior Ordovico and finalizing in the Superior Cretico. The creation of space for the sedimentation would be related to the flexural behavior of the plinth of the river basin, produced by compression of the active margin of the paleocontinente and reactivated through the geologic time with cyclical characteristics, that alternate periods of accelerated and decelerated subsidencia.

The tectono/sedimentaria evolutionary history of the River basin of Parana is characterized by great cycles of sedimentation, with amplitude of tens of millions of years, denominated supersequences. In the sedimentario registry of the river basin 6 supersequences, each one of them represented by a rock set can be recognized, limited by surfaces of discordancias of interregional character. Of the 6 supersequences the three first correspond to transgresivos cycles and regressive paleozoicos and the three last ones are mesozoicas continental units and igneous rocks associated.

RIVER BASIN OF THE CHACO

The river basin of the Chaco like pericratica river basin is conformed by sedimentarias subriver basins, that present/display almost all their sedimentarias columns in sub-surface, filled up by Cretico/terciaria sedimentation, with exceptions of the northern subriver basins of Curupayty and Carandayty, that have outcrops of some of their estratigricas units and the Stops of the Chaco Central and Lagerenza.

Subuencas of separated Curupayty and Carandayty by the Stops of Big hole and Lagerenza presents/displays paleozoicas sedimentarias columns on a Precbrico/cbrico plinth. The subriver basins of Pirity (or Pirizal) and To pound separated by the Stop of Hayes, present/display a sedimentaria column of more than 3,000 meters of rocks of cretica age.

Due to intensive the stuffed Terciario/cuaternario, caused by the great sedimentario fan of the Pilcomayo river, the geolico/estratigrico knowledge of the River basins of Pirity and Pilar are restricted to works of geophysical and perforations associated to the oil exploration.

Looking good so far. Buys 869,682 v sells 93,531.

OnWar.com
Armed Conflict (over oil?)
Events Data

The Chaco War 1932-1935



State Entry Exit Combat Forces Population Losses
Bolivia 1928 1935 100 000 4 000 000 80 000
Paraguay 1928 1935 80 000 800 000 200 000

*****

Chaco War (1932-35), costly conflict between Bolivia and Paraguay. Hostile incidents began as early as 1928 over the Chaco Boreal, a wilderness region of about 100,000 square miles (259,000 square km) north of the Pilcomayo River and west of the Paraguay River that forms part of the Gran Chaco. The conflict stemmed from the outcome of the War of the Pacific (1879-84), in which Chile defeated Bolivia and annexed that nation's entire coastal region. Thereafter, Bolivia attempted to break out of its landlocked situation through the R de La Plata system to the Atlantic coast; athwart that route lay the Gran Chaco, which the Bolivians thought had large oil reserves.

Bolivia seemed to enjoy overwhelming advantages over Paraguay: it had thrice the latter's population, an army well-trained by the German general Hans von Kundt, and an ample supply of arms purchased by loans from American banks. But the morale of Bolivia's army of Indian conscripts was low, and Paraguayans were better fitted to fight in the lowland swamps and jungles, in which many Bolivians died of disease and snakebite as well as gunfire. Both countries had maintained military posts in the disputed region.

On Dec. 5, 1928, Paraguay initiated a series of clashes, which led to full-scale war in spite of inter-American arbitration efforts. Both belligerents moved more troops into the Chaco, and by 1932 war was definitely under way. In June the Bolivians seized Paraguayan positions in the northern Chaco and launched a successful attack in the central Chaco against Fort Boquer. In August Paraguay ordered mobilization and sent forces under General JosEstigarribia in their first major offensive against Fort Boquer, which fell at the end of September. Kundt was recalled by Bolivia, and he concentrated his forces in the south to attack Fort Nanawa, where there was heavy fighting for several months.

Paraguay formally declared war on May 10, 1933. Estigarribia launched a series of attacks along an extended front late in October and made such impressive gains that the Bolivian president Daniel Salamanca replaced Kundt with General Enrique Peranda. At the end of a three-week truce, Estigarribia renewed his drive (Jan. 9, 1934) against the Bolivian post of Ballivi, where from March to July the heaviest fighting of the war occurred. Ballivi fell on November 17, and Salamanca was forced to resign. Paraguay's advance continued into indisputably Bolivian territory in January 1935.

After Bolivian counterattacks put Paraguayan forces on the defensive, a truce was arranged on June 12, 1935. About 100,000 men lost their lives in the war. A peace treaty was arranged by the Chaco Peace Conference, which included Argentina, Brazil, Chile, Peru, Uruguay, and the United States. It was signed in Buenos Aires on July 21, 1938. Paraguay gained clear title to most of the disputed region, but Bolivia was given a corridor to the Paraguay River and a port (Puerto Casado). The war had caused disruption of the Bolivian economy, provoking demands for reform among the deprived Bolivian masses. Argentina was given the main credit for the settlement, and Argentine investors profited greatly from Paraguay's territorial gain.

Paraguay Energy Ministry to Sign 12 E&P Contracts
BNAmericas Friday, September 24, 2004


Paraguay's mines and energy ministry will sign contracts in the next few days for 12 hydrocarbons exploration and production concessions totaling 26 million hectares, deputy minister Htor Ruiz told BNamericas.

"Formalizing these contracts will allow exploration to begin in the area from the Chaco [in the northwest] to the eastern part of the country," Ruiz said.

At August 2003 the country only had 40,000ha under concession in a single contract.

"We have asked each company to inform us about which entity is giving them economic and financial aid," he said. Companies giving such assistance include Williams de Broe PLC, Thorpe-Beestom Investment, and Mindley Investment, he added. UK-based CDS Oil & Gas recently formed a joint venture with local company Cano Martez and is providing financial assistance for the Paraguayan company.

CDS has also expressed interest in partnering with Morrison Mining for an exploration concession on the Boquer block. Other companies to sign agreements include Paraguay Gas, Boreal Petreos, Aurora Petreos and Amerisur.

"Those are all local companies with foreign agents," Ruiz said. Foreign companies that will sign agreements include HA & ER Exploraciones, Pilcomayo Petreos, Hidroener Consultora, GuaranExploration, and Union Oil, with technical and financial assistance from Brazil's BOYG and Andrade Gutirez.

The ministry recently recovered all of the original information related to 18,000km of seismic shot by US companies that had explored Paraguay for 40 years, as well as data on 24 wells, Ruiz said. "That [information] is highly valuable - mostly for technical reasons, but also for economic ones because it is work that does not have to be done again," he said.

Recovering the data will allow companies to begin work, he added. "That new information will be freely provided to each of the companies, making the sector more attractive and possibly increasing the number of companies interested in investing in the country," he said.

Hi Grevis,

Thanks for the posts on Friday. Looking forward to the week, hopefully a good one!

Interest waning on this one? Has anyone sold?

This is starting to look very interesting.

Taken from UK analyst last night.

Shares in Chaco Resources have been pretty strong of late and rose a further 0.125p to 2.575p today after top financial website t1ps.com said that it appears that there was an institutional buyer who cleared the entire stock overhang and more. It also said that it heard 3 fundamental rumours. Firstly, it said that 2 two senior appointments with superb CVs will be announced soon. Secondly, it said that Chaco was speaking to a South American major about possible joint venture agreements. And thirdly the website reported hear a wild story that another UK quoted resource minor is trying to buy a stake in Chaco

jayes

they must have all sold, nobody seems interested up 6.8% today, RNS soon?

Another tick up something brewing.

14% up news soon imo.

Are you lonely on this BB Forest? Will noone play with you?

Sold my small holding in these a few weeks ago cos I got frustrated with nowt happening. Tempted to get back in now tho......

Hurry!!

400,000 @ 07.59.11 was a buy not a sell.

Got in at 3.36p, just in time. Above that now. Nice.

PRESS COMMENT
FT
THE LEX COLUMN comments on BHP BILLITON's bid for WMC, UK hedge funds, P&O,
Italian banks - REDROW (on a well-deserved premium to the sector of 6.6 times)
Express
ACCUMA (dealers expect a strong debut today) - ARDANA (also set for a healthy
debut) - AFREN (also set to make its market debut at 20 pence) - WHO'S DEALING:
ARRIVA (chief executive sells shares after exercising options) - SHARE WHISPER:
CHACO RESOURCES (speculation it is eyeing up possible prospects in Colombia) -
BROKER'S VIEW: ANITE (Shore Capital buy)
Independent

All by myself making loads of dosh.


Memorandum of Understanding

The directors of Chaco Resources plc are pleased to announce the signing last
night of a Memorandum of Understanding with Expet S.A., a company based in
Colombia, to form a joint venture entity that will seek to acquire hydrocarbon
exploration and production contracts in Colombia.
Definitive agreements have yet to be negotiated and are subject to suitable
opportunities of a scale appropriate to the Company being identified and
secured.

Any such activities will be complementary to the Company's continuing
exploration activities in Paraguay.

Enquiries:-

Martin Groak, Finance Director
Chaco Resources plc Tel No:- 07949 209 301

Marc Young
Daniel Stewart & Company plc Tel No:- 0207 374 6789

..

RNS Number:5000L
Chaco Resources PLC
26 April 2005


CHACO RESOURCES PLC

('Chaco' or 'the Company')



London Stock Exchange - AIM Trading Symbol: CHP


Chaco subsidiary: Amerisur SA - Concession Contracts executed in Paraguay


Amerisur S.A. has two hydrocarbon Concession Contracts totalling 2.3
million hectares under application in Paraguay
These have now been executed, triggering the allotment of 1,821,494 new
Ordinary Shares to the Vendors
Further to favourable Presidential Decrees announced on 1 April,
submission to the Paraguayan Congress for ratification is expected by next
week

The Directors of Chaco Resources plc are pleased to announce that two Concession
Contracts have been executed by the relevant Paraguayan Government Authorities
with respect to applications by its Paraguayan subsidiary, Amerisur S.A., for
hydrocarbon exploration and exploitation concessions in two significant acreages
in Paraguay, known as Curupayty and San Pedro. The two applications cover
approximately 2.3 million hectares in aggregate.

In accordance with the Share Sale Agreement set out in Part IX of the Company's
AIM Admission document* dated 20 October, 2004, 910,747 new Ordinary Shares are
to be allotted to the Vendors of Amerisur S.A. with respect to each Concession
Contract being so executed. Therefore a total of 1,821,494 new Ordinary Shares
(the "New Shares") will be allotted and the Company will apply for the New
Shares to be admitted to AIM on 29 April 2005.

As announced on 1 April, a Presidential Decree has already been issued with
respect to these Concession Contracts, approving their submission to the
Paraguayan Congress for ratification and the promulgation of Concession Laws
with respect to each. The completion of this latter stage will result in the
allotment of a further 16,393,442 new Ordinary Shares to the Vendors.

The Directors have been advised that the Concession Contracts are likely to be
submitted to the Paraguayan Congress for ratification by the first week of May
2005.

Background

Chaco Resources PLC is the successor company to Gold Mines of Sardinia. In 2004,
the Company changed its strategy to one of pursuing hydrocarbon exploration and
development opportunities in South America, focusing initially on Paraguay.
Agreements were signed with two local companies, Amerisur SA and Bohemia SA,
under which Chaco acquired preliminary rights to approximately 4.8 (since
reduced to 4.7) million hectares they together held under application. For
various reasons, the country has seen comparatively little exploration activity
to date, but is of interest due to commercial extraction of hydrocarbons having
been made in adjoining countries from hydrocarbon basins which extend into
Paraguay.

On behalf of the Board of Chaco Resources PLC
John Morris
Managing Director

Taken from www.oilbarrel.com 28/04/05

Chaco Resources Firms Up Its Position In Under-Explored Paraguay The transformation of AIM-quoted Chaco Resources from a European mining outfit to an oil and gas prospecting business focused on the oil and gas riches of South America looks set to take an important step forward. The company's subsidiary Amerisur expects the Paraguayan Congress to ratify the award of two concession contracts in the country next week.

The move is an important one for the company, which last year sold its gold mining interests in Sardinia and changed its name to Chaco Resources, a nomenclature derived from a region of northern Paraguay. Chaco signed agreements in September 2004 with two local companies, Amerisur and Bohemia, which had applications outstanding for three concession areas that together cover almost 12 per cent of Paraguay's land area.

Chaco agreed to buy-out these companies in an all paper deal, with the shares issued as the permitting process passed key milestones. Now that the Paraguayan government has executed two of the concession contracts Chaco will allot 1.8 million new shares to Amerisur. A further 16 million shares will be allotted when the Paraguayan Congress ratifies these acreage awards, which is expected next week.

The two Amerisur concession contracts cover more than 24,000 sq km. The Curupayty concession lies in the north of the country near the border with Bolivia and the San Pedro concession lies in the southeast over the Paranbasin that extends into Brazil.

Chaco's other subsidiary, Bohemia, has an application outstanding for the Canindeyu area, which borders Brazil to the east and adjoins Amerisur's San Pedro permit area to the west. Bohemia has to settle a prior claim over a part of the acreage before it can proceed with its application.

Chaco believes that in Paraguay it has hit on a much neglected yet highly prospective hydrocarbon province. The neighbours are certainly promising: Paraguay's sedimentary basins extend into Bolivia to the north, Brazil to the east and Argentina to the west, all three of which have substantial oil and gas industries, attracting a steady inflow of petrodollars from international oil companies.

Paraguay, however, dropped off the international oil and gas radar and only 47 wells have been sunk in the country. This work was carried out by five US companies between 1945 and 1977, targeting different parts of the country, and by two local companies, which between 1977 and 1996 focused on the Chaco Basin in the northwest. A number of these wells showed traces of hydrocarbons but, given the low oil prices of the late 1990s, were left untested. Gas was also considered a non-starter because of limited gas power infrastructure in the region.

That has, of course, changed. Oil prices are around the US$50 per barrel marker and Chile, Bolivia, Argentina and Brazil are highly reliant on gas for power generation. The trick for Chaco will be striking the reserves it hopes lie dormant in Paraguay's little-touched sedimentary basins.

The company is certainly optimistic about its chances. "Paraguay is about twice the size of mainland Britain but there have only been 47 wells and half of those had oily shows," director Martin Groak told oilbarrel.com. "Gas wasn't on the agenda back then so it wasn't even reported. We are quite bullish about this."

Preliminary work has already started. "We have inherited seismic data that goes back 30 years that has never been processed through modern high powered computers," said Groak. "You get much more feedback from modern techniques and we hope to get these results by the early summer."

The results will determine whether the company plans to acquire additional seismic or seek farm-in partners to proceed with drilling. A further fundraising is likely to finance this work.

The company is keen on casting its net wider in South America, a region that many oil juniors find attractive because many countries there wed company-making reserve potential with low cost entry terms and generous fiscal terms. In targeting the continent, Chaco Resources joins fellow London-listed players Emerald Energy, Global Energy Development, Black Rock Oil & Gas and private company CDS Oil & Gas. And like many of its London peers, Chaco has now added Colombia to its hit list, having signed a Memorandum of Understanding with Colombian company Expet to form a joint venture that will seek hydrocarbon exploration and production contracts in that oil-rich country. The Chaco team is flying out to Colombia shortly for meetings with the oil ministries there.