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`ve just bought a few more ,which is normally the kiss of death.
DB66

Dough boys in - that means I am out - only joking of course - I am waiting pensively for this RNS

Baza

Sharesure, there's no way of telling unfortunately. However there are currently 2 Market Makers at high bid keen to buy. WDBM and SCAP so take your pick! we all know who's been buying for weeks at every level!

How do you find out about MMs at high bid?

How do you find out about MMs at high bid?

blackdown, each individual Market Maker position is displayed on Level 2.

Thanks for the vote of confidence ! bhunt1910, you know me to well.
LOL
DB66

Thanks, MPH. This pm looks like a typical 'shake the tree' job. Well, they wont be buying any of my holding.
As for Dough Boy, maybe this one is going to work out different for you!

I hopes so Sharesure! if it does the first round is on me!
DB66

Been away for a couple of weeks and didn't get time to make a decision before I went when sp required 9p to buy. Fallen whilst you wait but not by much.
Is it a given that a deal has been done and if so why is sp not higher?
Are you still convinced that placement won't be at a discount?
Only playing devils advocate for thoughts whilst I get my decision sorted.

andysmith, I'm still watching from the side lines. I can't see the "certainty" that a deal is just about to be announced as any more than a 50/50 chance, with greatest respect to sharesure and other posters on here. If it was so certain, the SP would be higher; if not certain, then it's not certain, which makes me not certain.

Assuming the deal is there, my second problem is that I don't believe CHP will be able to buy into a JV that is so far down the line towards production as has been assumed here - much more like an exploration phase turning into a development phase at best - so plenty more cash to be raised, gives plenty more, less risky opportunities to enter than currently (even if higher SP, the risk/reward would be better balanced IMHO).

I am no basher, as you know from other threads, but even if I am totally wrong, and the SP rockets skywards on an RNS tomorrow, I will have been true to my own analysis, which is just as important as doing ones own research in this game. My oppposing view is what makes a market, after all.

Interested as ever to hear what you decide.

good luck to all holders

sd

Stockdog, well said, stick to your own strategy/comfort zone.

Appreciate those thoughts SD as I do those of Sharesure and others enthused about CHP. Struggling to get my head around why if the deal is done is the sp not already >10p and on the way to 20p and why would placement be at a premium to todays price?

SD, also agree with sticking by your own analysis although my own current analysis on SEO has upset a few as it did when I ejected from MMG at 270p.
Hope I'm not proved right on SEO but another 4% gone today and 15p soon IMO.
With CHP I'm very tempted but the nagging question above is keeping me out.
Good luck to those in who believe in CHP and hope you make loads of dosh even if I dally around and miss it.

andy

Two possible answers to those questions

Although we all know that the market is a sieve and most deals are known about days before official release, perhaps on this occasion the news is being kept tight. It may well be of course because the deal isn't yet in the bag, or bacause the deal is being signed overseas that the rumour telegraph is having trouble picking up confirmation.

As far as the funding is concerned, who is to say that the cash will be raised in this country, again it could be overseas which would cause difficulties for the rumour brigade - possibly. There are precedents for raising capital at a premium, so it isn't unusual. Despite what sd says, my research indicates that the oil fields have already been surveyed and much of the infrastructure is already in place, hence the oil should flow a lot quicker than many might expect. That may be why the cash could be raised at a premium, very quick return on capital.

Mostly conjecture Andy, risky play, but could have a significant return.

all the best

pth

I admit to not having the benefit of any research on the state of the oil fields and infrastructure. Should I rely on fellow posters or should I know it for myself, before acting on it - the normal rule is the latter?

In terms of allocation, I am happy with very nearly 20% of my portfiolio in oils, including a modest holding in EEN which gives me a pure Colombian play. So I guess I am not looking to increase exposure. I'm more intrigued by CHP as a short term punt - hence my concern not to incur a short term loss through greed or bad timing.

Admitting I don't know what to do is just wet, so, not being sure, I have to take the stance of not buying.

As pth admits, risky play. I guess my apetite for risk is currently sated. Happy to watch this one - hope you all succeed.

sd

sd

When not sure on something, it cannot be a bad decision to take a waiting position.

pth

with regards to the funding, my info on this is that the institutions will have been given the full details of the deal. If the deal is what I and many others believe then I would buy at 10p or what ever the premium is set at. Once the institutions have been given this info they are classed as insiders and can not buy at the normal rates.
i appreciate it is difficult to believe anything on bb's as most people have an agenda but I bought in a few months ago at 3p so sharedog the sp has risen by some margin on the back of rumour mill. I am not here to convince people to buy sell or hold. I am a long term holder and happy to be.

Chaco mentioned in the Times "Rumour of the day" column. That should get things moving!!

Baza

September 27, 2005

The Times

Chaco Resources, the Latin American oil and gas explorer that emerged from Gold Mines of Sardinia, eased 0.1p to 8.30p on AIM despite word that it is close to taking on a clutch of concessions in Colombia held by Spains Repsol. Chaco is due to hold its annual meeting next week.

Times article