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.

CHACO RESOURCES PLC

("Chaco" or "the Company")

Chaco Joint Venture Awarded Primavera West Block in Colombia

* Primavera West Exploration and Production Block awarded in Colombia

* Chaco to hold 55% equity share in joint venture.

* Chaco to fund 100% of phase 1 seismic re-interpretation and drilling
of two shallow wells

* Estimated cost of phase 1 approximately US$2m.

The Directors of Chaco Resources Plc (AIM:CHP) are pleased to announce that a
joint venture group, in which Chaco will hold a majority equity interest of 55%,
has been awarded an Exploration and Production Contract over the Primavera West
Block in the Llanos Basin of Colombia, subject to agreement on work programme
details ("the Contract"). The Contract will be finally negotiated and executed
with the Colombian Hydrocarbons Agency in the next few weeks.

The Company regards this part of the Llanos basin as extremely attractive and
has therefore endeavoured to secure a substantial acreage. In practice, this has
not been easy as there is strong competition for terrain and incumbents would
usually exercise their pre-emption rights.

After extended and discreet negotiations, the Company was able to secure the
block which covers an area of approximately 146,100 hectares and lies north east
of Bogota. The first year programme involves the reprocessing of 300 km of 2D
seismic data and the drilling of two shallow wells to approximately 3,500 feet
in order to penetrate the Mirador formation, which is the principal reservoir in
the Llanos Basin. Other productive formations, such as the Carbonera, are also
present within the block acreage.

The Company had originally applied for acreage mainly to the east which was
partially pre-empted. A revised application was then made to include the portion
not pre-empted, enlarged predominantly to the west and re-submitted.
Significant portions of previously identified structures within the original
submission extend into the revised block, which contains the same reservoirs and
similar targets as the original acreage, plus a number of attractive undrilled
structures identified from previous seismic work and on-trend areas that have
not been explored.

The partners in the joint venture are Expet S.A. and Argosy Energy International
(operator).

Chaco will fund 100% of the first year programme in order to retain a 55% equity
interest. The cost of the programme is estimated at approximately US$2m

Chairman Jon Pither commented "Securing this third consecutive participation in
an E&P contract in Colombia is very important to the Group's progress. Chaco has
now established a significant presence in a country which is gaining in
international approval and which has both the organisational and fiscal
structure to allow companies such as ours to thrive. Coupled with its activities
in Paraguay, where it also receives a great deal of official support and
encouragement, Chaco has created the potential to deliver real long term value
to its shareholders."

-Ends-
For further information contact:

Martin Groak, Finance Director
Chaco Resources Plc
Tel: 07949 209 301

Marc Young
Daniel Stewart & Company plc

All I have to say is... finally(!!! - not very constructive I know)

SHARESURE,
Where are you!
Here it is at last.

Predictions for today please all?

Sharesure/MPH
Thanks for alll yor positive postings!

Sharesure
Congratulations and thanks for showing the way!
sd

Reading between the lines - is this better than anricipated - or not quite as good. Did we actually get what we went for plus some - or have we had to compromise a little ??

18.5 to buy

Excellent news - interesting times ahead!

Absolutely fantastic news. Much better than even the most Bullish could have hoped.

The price is lower now then i sold for weeks ago @ 18.4 and which T F C sold for.

It's only my opinion, but maybe the price is being taken down to fill a large order. Shame. It was looking like a nice start to the week. Eye's peeled for those T trades.

Strawbs.

price is being driven down by profit takers, which IMHO are taking profit too early, this will be in the papers tomorrows as it is a massive deal, the big boys will come in after the profits takers are out and price is low enough for entry. News has been confirmed, risk has been reduced.

IMHO it will touch 25 pence sometime this week

Good luck all

tokyo

Hold tight, great news imo

Surprised that people can still get in @18 after the news hmmmm
maybe due to the wording that they have been awarded the contract but "The Contract will be finally negotiated and executed with the Colombian Hydrocarbons Agency in the next few weeks"
So maybe the big guys are waiting for this to be finalised? (if so then we will see the rise that we expect within a month... 25-30p?) or I may just be barking up the wrong tree... am sure Sharesure will have better insight into the movement and forthcoming events.

I would like to add my thanks and appreciation to Sharesure, MPH and others for their postings, whilst the news is excellent the rise in the sp is somewhat muted. It is natural for profit taking to set in, however imho the best of the rise is yet to come, we may have to wait a while longer, but with this deal now in the bag there should be plenty of positive newsflow to move the sp much higher. Don't be afraid to take some profit that's why we invest, but I believe it will pay to stay invested in CHP.
2517

I second that 2517. This is one of the better boards I've come across while doing my research. In my opinion this is still a great investment, and I'm sure the price will start to head up again soon. The regular posters here have helped me keep my faith as the share price has bounced around recently, and I would also like to thank Sharesure, MPH and the others. The news flow continues to be positive and the management are delivering on their promises. As always, do your own research, and the very best of luck with your investments.

Strawbs

Chaco must now be one of the most undervalued companies out there at the moment,great news this morning, must admit thought they would hit 20p+ on the announcment. Will be interested to hear what sharesure thinks later in the day. Still a cracking company and still holding for the next 12 months at least.This is just the start boys.

The market doesn't seem to appreciate fully just what the Primavera west area allocation should mean to Chaco. The original incumbent's Primavera block to the east is believed to contain 400m barrels of oil. The seismic shows that the oil bearing sandstone substrate extends in a wedge shape to the west (ie Chaco's area) and that the thicker end of that wedge is in Chaco's area. This is supported by the 1.8b barrel oil field found in the Mirador field adjacent to Chaco's area. Graham Stevens believes that the Primavera west block is part of the same oil bearing basin and that the early drilling of two shallow test areas will prove his interpretation of the seismic. The sp reaction based on this potential is underwhelming but in my view will not last when the market wakes up to this potential.

I don't think it will take too long. I've just seen some big T trades go through, which confirms my suspisions that the price was being held down for the institutions. If the brakes are off now, then we should start seeing the price creep up today, and hopefully over the next few days. All just my opinion of course.

Strawbs.