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.

Dibbles,

Didn't mean to criticise any HML holders. Just used it as an example of what can happen when the price flies too quickly. Good luck with your investment.

Strawbs.

Thank-you George and Strawbs for your kind words, this board is a pleasure to read and post on.

I think most including me are interpreting the news as superb. However the market is a funny animal and it looks like the real sp mover in relation to the Primavera block will be the RNS containing reserve estimates after the seismic re-interpretation is complete.

News from Alea and Paraguay should provide steady fuel until then.

Incidentally keep an eye out for an RNS from Global Energy about their reserves in the adjacent block. The good thing is that they have a tiny headstart over Chaco so any RNS from them will give us a good clue as to what Chaco's might contain.

MPH - what is the EPIC for Global Energy?

I do believe its GED

For the info. of those who believe that CHP has not just announced a superb opportunity which will surpass what might have been obtained to the east of this block. ( The incumbent of Primavera also tried to get this block but was precluded on the grounds that they already had 90% of their allowable acreage in this area. They were also prevented from switching their allocation - that must tell you something about who got the better of this deal!)
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.
Give this a few days to sink in and the market reaction will be very different.

Sharesure. Hows the timetable your putting together panning out? Eagerly awaited like this mornings RNS.

Sharesure
Also looking forward to your timetable. It would be great to see some upward movement in the last hour just to confirm there are some sensible people out there!

Vistauk, sidetracked this morning + awaiting a couple of additional pieces of info. on CHP. Will post all of it very soon as a new thread so that each item can be ticked off as achieved during the next 3/4 months.

Why has CHP gone down today with the good news?

hlyeo98, there is a saying that it is better to travel than arrive, and that's what has happened here, however the journey for CHP is only just beginning imho of course.
2517

hlyeo98 - people taking profits, possibly news factored into the share price and/or investors not appreciating how Primavera could transform CHP. I seem to recall when the prior 2 contracts were awarded not much happened straight away. Patience is the key.

hlyeo98, Not many yet know that the seismic for the western end of Primavera shows an even thicker wedge of oil bearing sandstone than the area in the east. Once that starts to sink in the sp will move up; with CHP it also cannot be ruled out that one of the bigger players may decide they would like to acquire CHP to gain access to their TEA areas whilst the sp remains at these levels. Personally I hope nothing like that happens before the company has drilled and evaluated the areas and also gained their third Paraguayan acreage where there is expected to be a large gas field below the oil-bearing strata.
CHP is really only at the beginning of its journey, although as of today it is even better under-pinned with assets.

I'm still expecting to see a large T trade or two at the end of the day. We shot to 19 and the price has been down or hardly moved ever since, and the number of trades is pretty even. If somebody put a large buy order in at a higher level, the MM's won't be keen to pay more than the price they've agreed to sell at. Plus a falling price encourages people to sell just as much as a rising one. I could be totally wrong of course (wouldn't be the first time). As always, it's just my opinion, please do your own research.

Strawbs.

Strawbs,looks like are are coming through,T Trades that is,this will be up tommorrow

capetown,

Let's hope so. I wouldn't rule out a few tree shakes and other strange movements along the way though. :-) All in my opinion of course. Have a good evening everyone.

Strawbs.

you too mR Strawbs

F18

I would expect a delayed positive reaction to the news to now set in and the sp to advance over the rest of the week; there is no doubt in my mind that in gaining the 'thicker end of the wedge' formation in Primavera, CHP has successfully suckered the existing incumbent into being confined to its original area (which isn't that bad at an estimated 400m. barrels) but precluded them from being able to go for the potentially more oily area in the west of the region. It may be that they were unaware of the potential to the west until it was too late as I have been told that the seismic showing the western geology did not come to light until late on in the application proceedings. Whether that was due to someone being astute at Chaco's local office, I don't know, but they are extremely pleased with themselves that that is how this application has 'played out'

Have to say this thread and site is far more civilised than a certain other reknowned site. Unbelievable with the amount of idiots and imbecile juveniles deramping owing to the SP downward movement.

Anyway, good lucj to all on here (and thanks Sharesure for your invaluable contribution).

Kong

27.3.05 Price Movemenent

Have just been reflecting on the price movement following the RNS. I suppose we should all have expected something like this today, Monday. Remember the price has risen from 10p or so in anticipation of the news, that is an 80% increase.

Also, the old adage seems always to hold true, buy the rumour and sell the news. There will always be short-term traders who skim these sorts of profits, nothing wrong with that.

And there will always be shorters who hope to ride down stocks, whose prices have risen sharply and where no profits exist currently. Nothing wrong with that but everything wrong with deramping IMO (I just filter them and hope that others can see through them).

So where does that leave us?

I wonder if the selling has yet run its course. There are always those who have been at work, God forbid, and not have access to the Internet during the day. They might be short-termers who wish to sell and may do so tomorrow. Others may take fright seeing a fall in the price toady and sell tomorrow.

So I am will not be surprised to see a price fall tomorrow but what do I know?

Much more important is to assess the RNS for underlying value attaching to the shares. Im working on this now and will post my assessment based on Chaco managements own figures tomorrow.

KJ - well, it seems that just shy of 18m shares traded - 4th highest volume in 2 years - were so disappointed with the news that they caused the SP to fall 0.5p, 2.85%. Of the largest trades (84k and above, some 6.6m) 41% were sells and 59% buys (sorry, I don't have figures for all trades).

Confirmation of the Primavera contract is self-evidently a great removal of risk, albeit drilling itself is some way off. With highly speculative valuations north of 200p being frequently "calculated" over recent weeks by a number of the more intelligent and seemingly genuine posters, it seems inconceivable that CHP is not worth at least 10% of that, somewhere in the 20's - unless they have chosen the one dry spot in Colombia, that is. Not to mention 2 other holdings in Colombia and 2, soon to be 3, holdings in Paraguay which in themselves must underpin the present SP.

Anywhere north of 20p represents a thoroughly satisfactory gain on my holdings from 6.65p, 10.30p and 15.75p over 5 months to 2 weeks. There may well be some more selling over the next days or so by short-term traders who didn't manage to get out yesterday to chase some other rainbow. However, when this froth has blown away, we will be left with a more serious set of investors ready to face the long climb north with patience and determination, nourished by a good many news opportunities along the way as 2D is re-analysed and the first 2 shallow wells are drilled during the remainder of this year.

Alternatively, assuming none of CHP's 6 territories produce a single drop of oil, with a trailing stop loss currently set at 15.75p, what's my down side?

I look forward to your further analysis later today.

I echo KingKong's comments re that other board - unbelievable noise to signal ratio!

Thanks once again to Sharesure, Bodeng, M_P_H and all those who have provided valuable information and insights into this share.

sd