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.

Very little trading this afternoon,maybe there will be a bit more action in the last few minutes of trading.I would of thought if things were that imminent there would be more action ?
DB66

My contact says that the key people are still in Sth. America working on the deals but are pulling out the stops to get it finally tied up earlier than the AGM. You can be certain that WDBM know exactly where this deal is at and if they are still high bid then they are confident that the outcome will be as hoped/forecast.
I have no intention of selling any CHP shares this side of the AGM.

Thanks Sharesure,i`m not having the best of days investment wise and was starting to get the jitters but i`m still holding.
DB66

Thanks Sharesure!

Good to see you back!

stateside

Sharesure
Thanks for the news but I wonder why it is so complicated!

At least the AGM should give us a cap to the time limit ! - shouldn't it !!

Bodeng, If they have done the type of deal I and others think they set out to do, it wouldn't be surprising that is has taken this amount of time. Although we have had a few 'false dawns' on this one I would plump for news earlier than the AGM and would not be surprised to see an RNS as early as Monday.

Thanks SS - fingers crossed for Monday then

Baza

yes, thanx ss. I look forward to monday. 7am again!!!

Good luck to all holders, I believe we are sat on a gold mine.......

cc

Cleverclogs,

My lucky charm says that you are probably right.

Blackdown

All regular posters
Good luck Monday morning!

RNS:
Colombian Joint Venture

RNS Number:0753S
Chaco Resources PLC
03 October 2005


CHACO RESOURCES PLC

3 October 2005



Chaco Signs Colombian Joint Venture Agreement


*Farm-in agreement with Repsol


*Appraisal and development of oil field in Putumayo Basin in Colombia


*Existing discovery well flowed oil at 533 bbls / day in 1988


*$7.4m investment for a 25% share

Chaco Resources Plc ('Chaco' or 'the Company') is pleased to announce that the
Company has entered into a farm-in agreement to join Repsol Exploracion
Colombia, a subsidiary of Repsol YPF, the former National Oil Company of Spain,
to appraise and develop an undeveloped oil field in the Putumayo Basin of
Colombia.

Chaco has agreed to fund Repsol's cost of re-working existing seismic coverage,
re-entering and testing an existing discovery well, which flowed oil at 533 bbls
/day in 1988, and drilling a new stepout well to determine the possible lateral
extent of the field.

The Company will earn a 25% working interest in the block, which is operated by
Ecopetrol SA, the national oil company of Colombia. Potential oil reserves will
not be known until this work is completed but recent Repsol mapping has
indicated that the discovery well sits on a well defined structural closure. The
program cost to Chaco is capped at US$7.4m over the first year.

Private Placing

As announced on the 24th June 2005, the Company intends to fund this operation
via a private placing, and at an EGM of the Company held on the 18th July 2005,
shareholders unanimously gave the Board the discretion to place up to
125,177,500 shares for cash.

Changes to Board composition

The Company also announced on the 18th July that, in the event of its securing
an interest in an exploration and development licence in Colombia, Graeme J.
Stephens would be joining the Board as Technical Director. This appointment has
now been confirmed.

In order to make way for this addition to the Board and to allow for its future
realignment in the light of the Company's new emphasis, Dr. Tom Elder and Mr.
Lee Graber have agreed to stand down.

Chairman's comment

Chairman Mr. Jon Pither commented
"This is a very significant step forward for the Company and we hope that it
will be the first of a number of exploration and production opportunities in
Colombia.

On behalf of the Board, I should like to extend our very sincere thanks to Tom
and Lee for the wonderful support they have consistently given to the Company,
and to welcome Graeme, whose expertise will be pivotal at this very important
stage in the Company's development"


Background

Chaco Resources Plc is the successor company to Gold Mines of Sardinia Plc. In
2004, the Company changed its name and its strategy to one of pursuing
hydrocarbon exploration and development opportunities in South America, focusing
initially on Paraguay. Two local companies, Amerisur SA and Bohemia SA, were
acquired for shares whereby Chaco obtained preliminary rights to approximately
4.7 million hectares they together held under three applications. Two of the
three applications covering approximately 2.3 million hectares were
subsequently granted as Exploration and Production concessions and the third is
still in process. For various reasons, the country has seen comparatively little
exploration activity to date, but it is of interest due to commercial extraction
of hydrocarbons having been made in adjoining countries from hydrocarbon basins
which extend into Paraguay. All the historical seismic data relative to the
applications was purchased at the time of the acquisitions and is currently
being re-processed using modern computers and analytical programs. On
completion of this first phase, the Company plans to review its strategic
options in terms of doing further seismic work and/or initiating a drilling
program. The Company's stated intention is to bring in farm-in partners for
this second phase.

Chaco was subsequently introduced to opportunities in Colombia, where a
fundamental change in the fiscal laws and an overhaul of the state's management
of hydrocarbon exploration and production permits created a very favourable
investment environment. Chaco teamed up with strategic joint-venture partners
who have many years of experience operating in Colombia and through whom it has
been seeking to participate in exploration and production (E&P) concessions.

Graeme Stephens (65), who now joins the Board, is a geologist based in Western
Australia, and has been in the oil industry for over 45 years. He has had senior
positions all over the world, including Managing Director of LASMO Oil
(Colombia) Ltd for two years in the 1990s and prior to that, Resident Manager of
Marathon Oil's northern Brazil operation. He has also been the Managing Director
of three publicly listed oil companies in Australia at various times during his
career. Most recently, he was general manager of Tanzoil NL, a company exploring
in Tanzania.

Chaco Resources Plc (AIM Trading Symbol: CHP) has offices in the UK, Western
Australia and Paraguay and intends to open an office in Colombia shortly.


Enquiries:

Chaco Resources Plc
Martin Groak : 07949 209 301
Website: www.chacoplc.com

Daniel Stewart & Company Plc
Marc Young : 020 7776 6550

Thanks MPH. Although a good start this is not the extent of the deals which my source says they are in for. I'll try to find out more.

I am hearing the same sharesure, more to come.

WDBM still buying at high bid

Are you guys hearing more news to come today, or AGM?

cc

Sharesure, MPH, the existing RNS I would say falls short of what people were expecting and perhaps most of the RNS issued has been built into the price.

It seems to me that alot of people at the moment are not sure what to do, the RNS does not give us a great deal of detail and so difficult to value the news, are you aware of any more information to come out and have you heard when to expect it.

CC & Stewart, Am pretty certain this is only a small start but am trying to find out more. The fact that WDBM are still high bid suggests this is not the only bit of news that is in the pipeline. Two separate sources I have were suggesting some much more lucrative deals were afoot.

pwehaps they will use the AGM to elaborate ??

Thanks for the update ss. I think a few of us without your 'contacts' are feeling a little bit in limbo at the moment. Surely with the amount of time we have been waiting for this RNS they should be able to give more details.

cc