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.

I agree with you camiladasi.

Sorry Arkantos, I misread your question!

Bugz,

WDBM= Williams De Broe (The man to keep an eye on, he's in the know on CHP)
SCAP= Shore Capital
JEFF= Jefferies
EVO= Evolution Securities
KBC= KBC peel hunt
WINS= Winterflood
MLSB= Merril Lynch

Thank you M_P_H!!

Any opinions about this post?

"THE TRUTH


Market makers are propping the share up to facilitate the private placement
which should create 400 million new shares at 5p more or less


that is a dilution of 35% to old shareholders


of course once this is done REALITY WILL PREVAIL and market makers which are now shorting the stock will buy back at 5p in 3 to 6 months time

WHY -50%????


because BUY placement LOW (5 TO 8P let's say)

SELL high and keep selling all the time after the news and the placement

they will make between 10 to 100% SIMPLY BY SELLING higher 400 million shares or part off...


rumours of 20p are non sense as there will be 700 million shares and therefore a market capitalization of 140 MILLION POUNDS

for a company that holds exploration rights ONLY that are valid a couple of years ONLY


until REAL OIL is found and REAL CASH FLOWS pour in

you will be paying BIG BOY'S city bonuses with your own money


if oil drops back to 50$ at the same time, the exit will be really HARD or IMPOSSIBLE at good levels


MANAGEMENT needs to PROVE OIL IS THERE not just raise money at every AGM/AGE

good luck at above 8p"

Yeah cheers MPH.

Where did u get that comment from Arkantos and who posted it?

Arkantos,

as always with these things (rampers and de-rampers) there is an element of truth and a lot of fiction. Anything before the RNS/placement is speculation either way.

There is almost no doubt that there will be a placement, but the maximum the Board has authority to place is 125M shares = around 30% of existing issued shares. This will bring total issued shares up to around 540M. Dilution effect would be 25% on SP but ONLY IF nothing else happens at the same time.

If the placement price is at or above 8p and there is an RNS at the same time then the SP is most likely to rise significantly. I think this is the scenario that most investors are expecting and anticipating. The big question is the value implied by the RNS and the placement. That is where BB posters disagree and where people claim to be "in the know".

The placement shares would be expected to be at a discount to the fair market price (say -20%). So that will tell us a lot.

In general, oil companies have not valued there reserves at anything over $40 - so even if we drop to the unlikely figure of $50, the value and profits of producing companies will be more than at present and that applies to e&p companies who make finds also.

WDIK, PDYOR.

camlad

There seem to be two opposing theories as to why WDBM might be accumulating stock. This is my analysis.

1) They know something good and are accumulating so that they can profit on the rise once the news is public.
Is this insider dealing - using privileged information from their corporate advisory side?
MMs do not normally take a decisive position, preferring to make their money on turnover.
How good can a TEA licence be?
When/if new capital is raised, it may exceed current powers, but would require an EGM before admission to trading on AIM.
It will almost certainly be at a discount, since it is still a highly speculative business needing at least 2 years and several more rounds of fund-raising to bring any oil to the surface.

2) They are buying to prop up the price, so that they can get a good price for the new issue which will be needed soon.
This is much more in keeping with a house-broker's services to their client company.
What they lose on buying in a few million at 8p will be less than the brokerage and dealing spread on the new funds raised.

I have watched this stock ever since sharesure (whom I respect a great deal) drew my attention to it with genuine intention to get involved if/when I deemed appropriate.

I remain bearish in the short term. I think it has peaked on market rumour and that no RNS can push the SP higher, especially if linked to news of fund-raising (at, I believe, much more likely a discount than a premium to the current SP). I think, if the prospects are as good as sharesure and others suggest, there will come a time within the next 3-9 months when one can buy in at a price which I guess will be not far from where it now is (higher or lower I can't guess), but at a much lower risk than currently presented.

I like Colombia, I have been well into EEN for nearly a year now. I buy to hold as an investment for the mid to long-term. I do not short stock. I have no interest in CHP other than to determine for myself when/if I should buy in. That time is not now for me. If I am wrong, I will have lost nothing but an opportunity - plenty more elsewhere I'd prefer written on my epitaph.

Best of luck to all other points of view.

sd

sd, I have remained on the sidelines today mainly for the simple reason that I do not expect to be selling my holding in CHP for 12 months, ie to minimise CGT and apart from letting any TEA agreements in Colombia move into production but to allow a little time for the exploration in Paraguay to take place and see what is there.
The reason I have been so bullish about this stock is that at the last EGM the Board and their advisors seemed so positive about what would spring from Colombia. The TEA legislation allows small or large companies to acquire areas held under licence by others provided they have a decent exploitation business plan and the existing holder does not come fwd. with a rival plan. Many of those licence areas have already been drilled but for various reasons have not been developed. In the case of say, Repsol, they have apparently declared that they are reducing their exposure to South America. They have existing licences there so maybe they have relinquished those.
WDBM were at that EGM and have since been loading up their high net worth clients with this stock - commercial suicide unless they see huge upside. I don't remember which person said it at the EGM, but the expectation was that any development finance would be placed at a premium to the sp

Stockdog, accroding to ADVFN, Danile Stewart are the nominated brokers. They're not doing the buying ? WDBM are simply MM's and are buying?

WDIK, PDYOR.

camlad

sharesure - I estimate you bought in nearer 5p - a much safer place to be. My remarks really refer to today's price of 8p. Interesting debate. We'll see who's right. I hope you are!

sd

Bugz, the comment was posted on ADVFN by VICTORFROMPORTUGAL. Post number 3673

sd, so do I !!!!!! I think your comments would apply to many situations where exploration stocks are concerned. However I do believe this has a different background which justifies my optimism.
As for price I was buying continuously up to 6.5p. I only stopped because I ran out of cash! If I can sell something else before the long awaited RNS I will buy more at the current price. I also accept that much more delay in getting any company news might put strain on the current price; that might cause me to justify finding further funds to invest because I do not think the risks would be unacceptable, given the upside. If I see WDBM selling then maybe I would have less faith in this stock. I doubt I shall see that happen this side of any announcement.

Although happy to read both bearish and bullish posts on any stock, 'victorfrom portugal' is an active basher on the ADVFN CHP thread. He may well of course be right, but as always in a debate the truth often lies somewhere in the middle. The trick is in knowing where the middles actually is!!

pth

if we knew where it was, we could play both ends against it!

victor.....the deramper

also a pain in the arse....if crude falls to $50 by Christmas then I'll kiss my

we've seen nothing yet....my guess will be touching $70+ again pretty soon.

M_P_H,
I do care about RNS, I am an investor. But what I DO object to is rompers like you. My point was that you dont need to state every day RNS will be out today or next day. Because when you keep on saying the same thing over and over again and it does not appear everything else you write on the thread will not be taken seriously. If you cant take constructive criticism may be it is you who need to toddle back to where ever you have crawl from.

Kaysmart, MPH is providing good info on this. The behaviour of WDBM is crucial to reading this stock. Their clients hold at least 26% at last Report time, possibly more now. Calling when a very complex Agreement will be in finished form is difficult. One or two of us are as close to this as it is possible to be without being insiders. If you don't appreciate any of what is written on this thread as a help to others to join in what should be a very good spec. go elsewhere.
Neither MPH or me or any of the others who are close to this are short termers on this one; but it is true that it poss. helps the outcome if the stock is at a good level to prevent any placing being at too different a price to the sp. Hopefully, the deal is so good it will go to a premium; we'll have to see on that one.
Meanwhile go to another thread, in the nicest possible way.

Sharesure, One or two of us are as close to this as it is possible to be. Are that close to this one?