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.

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!

SD/Camil. You think it is hype? We'll see. There is a good reason why there has been no news yet. That will become apparent very shortly, then we'll be able to assess accurately what is true and what is hype. If you missed the boat/don't want to invest, that's fine by the rest of us on here; just don't try to talk down a stock which seems to have been cleverly managed by its board into a very advantageous position, unless of course you are sure that you know better.

sharesure, I notice you still haven't said why you think there will be a news release this week (as opposed to last week or the previous week as you predicted then)?

camlad

Sharesure
Not talking it down - just steadying the occasional slightly wild comments with, I thought, fair comment of my own about the facts of T&E, Exploration and Production Licences which seemed to be missing from many people's knowledge. Yes, I did miss the boat at 3.5p (and very well done and good luck to those that are in) being totally unaware of it until you drew attention to it on SEO thread (thank you for that).

My opinion that it's a little toppy to be getting in now is perfectly valid. Both on fundamentals (almost none and cashflow a couple of years away at least after much more fund-raising along the way) and TA - see my reference above to Bump and Run - it is highly speculative to the point of a pure punt or gamble which I generally try to avoid. I sit and wait for a signal that guides me whilst reading everything I can about this share (mercifully not that much of real import) - whether to be grateful I followed my decision, to regret it utterly or to be finally convinced it's time to buy, I have no idea, but I watch with genuine interest.

I am interested to join in the debate which is usually healthier when it has more than one side. I am not a de-ramper throwing unsubstantiated rubbish at this stock. I have been polite, informative, rational and good spirited in my posting. If you don't like debate don't reply to me.

Good luck

sd

Sd, fair enough; I know there are concerns that some 'pump and dump'. I don't. If I get a good idea I like to share it with others in the hope that they will do the same. I don't think this is over-inflated given its potential, but obviously it would help to have an RNS soon.
Camil. I am not free to say why there has been a delay. As it has been put to me, it is for good and beneficial reasons and I think that will be evident when AN RNS is released. For the moment let's just leave it there since this week should clear that up.

I looked at this co. after recommendation by Sharesure as I have always found him to be a reliable, sensible and intelligent poster with it seems many contacts.
I then took a small punt after deciding the risk/reward ratio was good.
I'm all for sensible intelligent debate from either side of the argument, what I object to is posters deciding what I do or don't believe on my behalf as camlad did previously on another bb a couple of weeks ago.

Having said all that camlad gave a sensible reasonable response yesterday so I'll leave it at that.