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.

Greyhound, it does sound promising, however I was under the impression that these guys meet once a month, so perhaps we will have to wait a further 3 weeks for the next meeting before we get the result we are all hoping for. I'm not a pessimist just a realist.
2517

just a thought.... maybe its a ceramonias signing...and photo opportunity!

Who knows, however now I feel a little more comfortable I can leave CHP alone and concentrate on a few others! I'm in for the long term and it's all too easy to become obsessed waiting for news. It'll come one way or the other in good time.

Greyhound
Looks like when rather than if which confirms what several others have stated!

bodeng, let's hope so, spanners often appear when least expected but we've done our research.

Good article over at www.oilbarrel.com, summarises the projects that Chaco are involved in for those new to them.

Chaco Continues To Impress As Investors Await Appraisal Of Alea Oilfield
Investors in South American exploration company Chaco Resources have enjoyed a heady start to the year. The AIM-quoted company, which in February raised 1.5 million through the placing of 13.6 million new ordinary shares priced at 11 pence each, has seen its shares more than double since January and has been tipped in the national business press - well, The Independent - as one to watch.

The reason for the rally is down to the companys growing portfolio of assets in Colombia and Paraguay, including a possible fast-track oilfield development. That project is an appraisal of the Alea discovery, in which Chaco will earn a 25 per cent stake by funding the first phase of a work programme capped at US$7.4 million.

The appraisal project is based in the Platanillo Block in the Putumayo Basin in the south of the country. The field was discovered in 1988 when a discovery well flowed 533 barrels of oil a day, which led operator Repsol to put the recoverable reserve base at 21-38 million barrels of oil. The initial work programme involves re-working existing seismic coverage, re-entering and testing the original discovery well and the drilling of a new step-out well to determine the possible lateral extent of the field. State oil firm Ecopetrol will operate the programme and it is expected that the re-entry of Alea-1 will commence during the first quarter.

Elsewhere in Colombia, Chaco is set to earn a 54 per cent interest in the Puerto Lopez Oeste exploration and production by spending just over US$1 million on seismic work during the first year. This block lies in the well-established Llanos Basin to the east of Bogota. The objective here is to find a "look-alike" structure to the 10 million barrel Valdivia oilfield which lies immediately to the south and is currently producing over 3,000 barrels a day. The 2006 work programme will involve the re-interpretation of existing seismic to high grade areas in which to shoot 100 km of new infill seismic to define possible Valdivia look-alikes.

Chaco is keen to add to its holdings in Colombia, where it has an application outstanding for the Primavera Block in the Llanos Basin. This block was unsuccessfully explored in the 1980s, with a number of wells finding oil shows in the Mirador Sandstone, the main producing formation in the Llanos. Despite its inauspicious exploration history, Chaco believes there is plenty of scope to make commercial finds in the block.

The work commitment attached to the Primavera application comes in at US$1.25 million. This low cost entry barrier is one reason why Chaco is so keen to pick up more acreage in Colombia. Its enthusiasm for the country has also been stimulated by government plans to cut by one-third the rate of corporation tax from 38.5 per cent to 28.5 per cent. It is this kind of government measure which has made the oil-rich South American country such a popular destination for oil juniors, among them Emerald Energy, Black Rock and Global Energy Development.

Thanks fnark

GREAT info,thanks from me too,think all the dosh is going into EME today so we may have a quiet one here,Great to see the price holding steady,and looking forward to it doing an eme! SOON.

Good luck all

fnark, are you the same person who is in position 4 in the 'investor of the year' competion? If so, well done, no doubt you are hoping to go much higher soon if you have the lot in Chaco!
Frampton (position 36, but still hoping!)

News could come this afternoon but one signature is all we need!

Sharesure, I did not receive the email + phone number. I am new to this board and learning my way. Have tried to add my email to the KJK. Am out this afternoon.

KJK, email me again as that worked, with your tel. no. and I'll call you straightaway

Can anyone confirm they have 16.95 as a buy. we had this last friday, the spread looked wider and some sells were buys.

Fliper
I have just been able to buy @16.90 through td waterhouse,hope this helps

Capetown, good timing!

Thx shareshure
Topped up and thats it now all up2 chp
holding thumbs

Sharesure
I look forward to your listing of five positive events next week-I can guess some but not that many!

lots of buys marked as sells,picked some up at 16.55.

My response to a question on another board may be of interest.

Matt19,

In response to your question, on the short term share price I have outlined my thoughts. Conservatively, I think it could well be around 50p - not immediately but in the few weeks following any positive RNS.

Why? Well, the share price hovered around 8p after the Alea and Puerto Lopez announcements. Therefore, 8p represented a discount of 55% of the estimated net present value of oil potential/resources of 18p at that time (based on oil at $55 a barrel).

Any guess now depends upon the companys estimated potential resource, and applying a similar 55% discount. Im currently assuming a 400m bl estimate and I have previously estimated a potential net asset value equating to a share price of 238p. But I think this value needs to be discounted further due uncertainty about the potential resource of 400m bls.

Applying a 55% discount to 238p, gives 107p. I want to discount this value by a further 50% due to uncertainty, giving my best guess at an appropriate short term share price of 50p to 55p.

I do not think this will happen overnight but over the course of a few weeks after the announcement.

But this is based on my old figures. I believe these figures and assumptions (derived from the company's presentation on its web site) are too conservative and now out of date. My latest, more realistic figures show greater potential. Once we have the RNS and a better potential resource, I will update my figures and post them. Then you can all ask questions, pull them to pieces or whatever as part of a process of making up your own mind on them. I will help in any way I can.

Primavera will not be the last application for oil fields in Colombia!.

Remember this is not just any old licence of an unknown area. This application is the direct result of Chaco having brought onboard the experienced oil executives in Columbia, with their multi-national company in-depth knowledge of where the oil is in Colombia.

Regards,
KJ

KJK, Thanks for that. Broadly I go along with your conclusions re sp. Just one question for the moment. Have you factored in to Primavera that CHP get 55% of the 400m barrels and similarly applied a share of 25% for Alea and 54% for the second area?
I agree that Primavera will not be the last Colombian TEA assets they go for - Graham Stephens confirmed at the AGM that there were other prospects they wanted to go for. Obviously with more publicity a few other companies are jumping on the bandwagon but CHP's local contacts should be an advantage in them getting more than their fair share of what they apply for.
Re your comment concerning an important official being away on holiday and when he returns I don't think that was necessarily required for the official paperwork to be released to CHP, so the RNS could come out at any time that CHP has that document and an agreed RNS - there are three countries/time zones involved + the Nomad would have to approve the detail of what is released.