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.

pisces

I don't mind the resistance forming at 16.5p for a few days. Once we break through this it will act as support - cf. the pattern at 12p. Much better this way than a vertical ascent followed by vertical profit-taking.

sd

That's more like it, I understand the meeting is 23/24 of this month, so should know the verdict soon after, hope it's good news.
2517

One of the reasons why I'm so bullish on the 3rd deal is the joint participants, Expet and Argosy Energy - both of which are local Colombian companies.

Perhaps someone can give better information here, but under the Technical Evaluation Area permit (TEA), I understand that parties have to be able to match higher budget proposals. Could this be the reason behind the recent placing. It seems too much, however perhaps they wish to demonstrate their funding abilities?

Greyhound, Expet was only recently formed (late last year) and looks as if its sole purpopse was to be a partner with CHP. Certainly it is not trading apart from the CHP deals it is involved in. I think you're right and its main asset is local connections. Haven't heard of Argosy and their relationship with CHP - where did you get that info from, please?

When CHP bid to take a TEA area away from an incumbent, the incumbent has 1 month from notice to match or exceed CHP's bid. If they don't at least counter-bid, including a commitment to exploration/drilling/production, then the ministry can take their license away and give it to CHP provided that CHP (demonstrably) have the funds to meet the bid they've entered.

For Alea, the incumbent did counter-bid and CHP ended up coming to an agreement with CHP funding the drilling in exchange for a 25% share.

With Primavera, the 1 month counter-bid period is long over and we are in the 60 day ministry consideration period. That could theoretically go into March but there is a ministry meeting this week - hence all the speculation and rumour. The recent placing which raised c1.5M also implies that CHP needed to have demonstrable funds - again feeding the speculation/rumour that an award is imminent.

WDIK, PDYOR.

camlad

If news is out on the 23, you need to be in by 4.30

camiladasi - many thanks. I got the info on Argosy on an old RNS - just trawling through various info I've been looking for on Reuters. I thought the bidding process was well over but naturally following the placing, had my suspicions whether I had understood this correctly or whether the funds were for a specific purpose or purely to demonstrate their capability.

Looking forward to next week.

fliper, personally I'm not expecting news tomorrow.

WDIK, PDYOR.

camlad

fliper, surely any announcement, if a meeting was on the 23rd, would be at earliest reported morning 24th uk time. I cant see the meeting being an early start!

It would be nice to get news this week rather than another weekend in between-next week should be news on CDS!

Copied from another board - I have no idea as to its authenticity - I can not even vouch for the poster - I merely post it here in case it corroborates any one elses information ??

"A local contact has just been into the National Hydrocarbons Agency in Bogota, and whilst the assistant was out of the office, finding the answers to some deliberately awkward questions, had a good nose at the files? Guess what?? The application was submitted on 30th September 2005. (Weren't we told it was 19th Dec or Jan?)

Date application received: 30th Sept 2005
Sector applied for: Primavera
Type of contract: E&P (TEA)
Cuenca (district): Llanos
Area (hectares) 146,100
Status: Pendiente Consejo Directivo (Pending directive of the council)

My contact confirms it is on the agenda for the next meeting, which could come to their decision straight away on Thurs, but by the time we hear, the markets will be closed, as they are 5 hrs behind us. We may hear Fri, but allowing for the company to prepare their RNS, (and tip off all their relatives) official confirmation could be Mon? However, once the decision is given, it then enters the next stage on the status .. "awaiting signing", and finally the last status is "contract signed". But once the decision is given, there's no turning back.

I would think oilvoice/oilbarrel/rigzone etc will publish it before the company, as they have pretty quick response times."

baza

Baza, interesting post. Really do not know what to make of that. Shares, page 33, has a mention of Chaco; I wrote them a terse letter on Chaco etc.(which they didn't publish!!!!!) asking the editor how many other multibaggers was his team going to let go by un-remarked.

Quite a wide spread-people waiting for news-hopefully not caught napping!

Why the sudden tick up, is there a large buy order in the background or have mm`s pushed price up to trigger sell orders because their short of stock before the news, just a thought.

Another tick down right on the hour during lunch.

Must be an automatic quoting algorithm in place to generate some business while the MM's are in the Barrow!!

Amities / Another Pl led stock ..? With my traders hat on i am neutral . From the vantage point of the investor without time as my master l am quite bullish . As reg. a dearth of stock: Your patently wrong . When a colleague of mine inquired of buying a position far in excess of the NMS he was told it was available within the normal spread . No premium as one would have expected on a consideration of this size in what is both a generally and individually a most volatile stock market. ,,,,,,which, of course, while not implying an overhang in CHP it still shows mms were either in very early on this one or are covering all thier bases.. With all variables in place all that remains for them to do is find the right text to unlock the parameteres of the s/p ......and while volume remains high that is very clever trick to perform ......Qui sait ? ...As always - lts the waiting game for holders ... Bonne Chance !!!!! a/b @+ J

MM back from lunch , normal service again

Amities Flip / So it would seem.. @+ J

The French Connection,

I would suggest you stick to France, what was your post about, were you going anywhere, utter garbage, don't waste other peoples times, the film was much more convincing than you.

Aldwick, sorry he is not an asset it is quite simply a way of deramping the stock, it is not a balanced view, check how many times this clown posts and it is all negative, he or she never reaches a conclusion, as i said utter dribble and the quicker you see that and act accordingly the better.

I tell you what lets see who is richer on Wednesday of next week, you, me or that french clown, I would bet on me.

Stew,

The French Connections insight into the workings of the market are a asset to this thread.

Any oil experts in?

I seem to remember reading somewhere that oil in the ground unproven is valued at about $5-$10 a barrel, is that a close estimate?