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.

yes good post, i have been looking for a decent oil and gas explorer. maybe this is the one???

paraguay looks a decent prospect, surrounded by oil producing provinces...

Company Chaco Resources PLC
TIDM CHP
Headline Notice of EGM
Released 07:00 24-Jun-05
Number 9880N



RNS Number:9880N
Chaco Resources PLC
24 June 2005


CHACO RESOURCES PLC
("Chaco" or "the Company)

Notice of Extraordinary General Meeting

EGM called for 18 July 2005 at 11 a.m. at Institute of Directors
Hydrocarbon exploration and production permits in Colombia applied for
through Chaco's strategic partners.
If any are granted, the Company will need to raise funding at very short
notice to secure them
Purpose of EGM is to seek shareholder approval to increase Board's
authority to place shares for cash in order to have maximum flexibility on
fundraising.

Introduction

On the 10th March this year, the Board announced that the Company was seeking to
acquire hydrocarbon exploration and production contracts in Colombia to
complement its ongoing activities in Paraguay.

Further to that announcement, the Company has been introduced to a number of
opportunities and is currently applying for exploration and exploitation permits
in Colombia through its strategic partners.

Due to the highly competitive environment and the fact that the Company is still
in discussions, it is not condidered prudent to give any further details at this
time. However, should any of these permits be granted, securing them would
require the Company to raise funding at very short notice. The purpose of the
Extraordinary General Meeting ("EGM") is to ask shareholders to grant the Board
the necessary flexibility to ensure that this can be done.

At Chaco's EGM last November, under Section 89 of the Companies Act, the
Company's shareholders granted the Board the discretionary right to place shares
for cash up to an aggregate nominal amount of 41,725.83. This would be
insufficient for the purposes referred to above. The Board are asking the
Company's shareholders to increase this to 125,177.49.

This authority will be reviewed at the AGM, currently planned for mid September.

Current Share Capital

At the date of this announcement the authorised share capital of the Company is
600,000 divided into 600,000,000 ordinary shares of 0.1p each ("Ordinary
Shares"), of which 391,757,414 are issued, 13,830,000 Ordinary Shares are
reserved for issue pursuant to outstanding options and a balance of 25,500,910
Ordinary Shares ("the Consideration Shares") are reserved for issue pursuant to
the agreements to acquire Bohemia S.A. and Amerisur S.A., which were approved at
the EGM of the Company in November last year.

Extraordinary General Meeting

Yesterday, the Company sent to its shareholders a letter from the Chairman and a
Notice convening an Extraordinary General Meeting to be held at 11.00am on
Monday 18 July 2005 at the Institute of Directors, Room 402, 116 Pall Mall,
London SW1Y 5ED at which the following resolutions will be proposed:

Resolution 1

An Ordinary Resolution to increase the authorised share capital of the Company
from 600,000 to 700,000 by the creation of an additional 100,000,000 Ordinary
Shares.

Resolution 2

An Ordinary Resolution to grant the Directors authority for the purposes of
section 80 of the Companies Act 1985 ("the Act") to allot relevant securities up
to an aggregate nominal value of 166,903.32 (being 166,903,320 Ordinary
Shares). The authority sought by this resolution will last for the period of
five years after the date of the passing of the resolution.

Resolution 3

A Special Resolution to grant the Directors authority to disapply section 89(1)
of the Act in connection with a placing, a rights issue or other pre-emptive
issue, and any other issue of equity securities for cash up to an aggregate
nominal value of 125,177.50 (being 125,177,500 Ordinary Shares), representing
30 per cent of the enlarged issued share capital of the Company assuming the
issue of all the Consideration Shares. The authority sought by this resolution
will last until the conclusion of the next Annual General Meeting of the Company
in 2005 or, if sooner, 15 months after the passing of the resolution.

Action to be Taken

Shareholders will find enclosed with the Chairman's letter a notice of meeting
and a Form of Proxy for the Extraordinary General Meeting. Whether or not the
Company's shareholders intend to be present at the meeting, they are requested
to complete, sign and return the Form of Proxy in accordance with the
instructions printed on it. The Form of Proxy should be returned to Capita
Registrars, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU as soon as
possible and, in any event, so as to arrive not later than close of business on
Friday, 15 July 2005.

Recommendation, Voting Intentions and Notification

The Directors consider the resolutions to be proposed at the Extraordinary
General Meeting to be in the best interests of the Company and of Shareholders
taken as a whole. The Directors have unanimously recommended all
Shareholders to vote in favour of the Resolutions to be proposed at the EGM.
The Directors who hold ordinary shares in the Company have confirmed that they
will vote in favour of the resolutions to be proposed at the Extraordinary

General

Meeting of the Company. Accordingly, 4,750,000 Ordinary Shares (in aggregate)
which, at the date of this document, represents approximately 1.21per cent of
the issued share capital of the Company will be voted in favour of the
resolutions. Additional copies of the Notice of Extraordinary General Meeting
and Form of Proxy, as circulated by post to shareholders yesterday, will be
available from Daniel Stewart & Company Plc, 48 Bishopsgate, London, EC2N 4AJ.

The precise wording of the Notice follows:

NOTICE OF EXTRAORDINARY GENERAL MEETING
CHACO RESOURCES PLC
("the Company")

(Registered in England and Wales under number 04030166)

NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of the Company will
be held at 11.00 a.m. on Monday 18 July 2005 at the Institute of Directors, Room
402, 116 Pall Mall, London SW1Y 5ED to consider and, if thought fit, pass the
following resolutions, of which resolutions 1 and 2 will be proposed as ordinary
resolutions and resolution 3 will be proposed as a special resolution:

ORDINARY RESOLUTIONS

1 That the authorised share capital of the Company be increased from 600,000
to 700,000 by the creation of 100,000,000 new ordinary shares of 0.1p each
("Ordinary Shares") having attached thereto the rights set forth in the
Articles of Association of the Company.

2 That the Directors be generally and unconditionally authorised in
accordance with section 80 of the Companies Act 1985 (the "Act") to
exercise all the powers of the Company to allot relevant securities (as
defined in section 80(2) of the Act) provided that:

2.1 this authority shall be in substitution for any equivalent authority
which may have been given to the Directors prior to the date of the
passing of this resolution;

2.2 this authority shall be limited to the allotment of relevant
securities up to an aggregate nominal value of 166,903.32

2.3 unless previously revoked, varied or extended, this authority shall
expire five years after the date of the passing of this resolution
except that the Company may at any time before such expiry make an
offer or agreement which would or might require relevant securities to
be allotted after such expiry and the Directors may allot relevant
securities in pursuance of such an offer or agreement as if this
authority had not expired; and

2.4 in relation to the grant of any right to subscribe for, or convert any
security into, shares in the Company, the reference in this resolution
to the maximum amount of relevant securities that may be allotted is
to the maximum amount of shares which may be allotted pursuant to such
right.

SPECIAL RESOLUTION

3 That the Directors be empowered pursuant to section 95 of the Act and
pursuant to the authority conferred by resolution 2 above to allot equity
securities (as defined in section 94(2) of the Act) for cash as if section
89(1) of the Act did not apply to such allotment provided that:

3.1 this power shall be limited to:

3.1.1the allotment of new equity securities in connection with any
rights issue or other offering of new equity securities in favour
of the holders of equity securities in proportion to the
respective numbers of such securities held by them (but subject
to such exclusions or other arrangements as the Directors may
deem necessary or expedient in relation to fractional
entitlements and/or transfer and/or holding of any securities in
uncertificated form or legal or practical problems under the laws
of, or the requirements of any regulatory body or any stock
exchange in, any territory);

3.1.2the allotment of new equity securities pursuant to the exercising
of existing options over 13,830,000 ordinary shares of 0.1p each
in the capital of the Company; and

3.1.3the allotment, otherwise than pursuant to paragraphs 3.1.1 and
3.1.2 above, of equity securities up to an aggregate nominal
amount of 125,177.50;

3.2 unless previously revoked, varied or extended, this power shall expire
on the earlier of the conclusion of the next Annual General Meeting of
the Company and the date falling 15 months after the date of the
passing of this resolution except that the Company may before the
expiry of this power make an offer or agreement which would or might
require equity securities to be allotted after such expiry and the
Directors may allot equity securities in pursuance of such offer or
agreement as if this power had not expired.

Dated: 23 June 2005 BY ORDER OF THE BOARD
Registered Office:
Prestige Travel Suite David Parsons
Barclays Bank House Secretary
81-83 Victoria Road
Surbiton KT6 4NS


Background

Chaco Resources PLC is the successor company to Gold Mines of Sardinia PLC. In
2004, the Company changed 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 3 applications. 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. A small, highly professional, but extremely cost-effective
office was opened in Asuncion.

Two of the three applications are in their final stage - in Congress, awaiting
to become Concession Law. The third application is still at the first stage and
will be progressed immediately thereafter. The seismic data, which dates back
over a 30 year period and which is extensive, is due to be re-processed using
the most modern methods. As there were concerns about the original data being
transported to Europe, it is currently in Argentina being copied onto disk.

The data has been examined, sorted and prioritised. Once it has been reprocessed
and reinterpreted (this has an August target for completion, but key priority
information is expected sooner), the Company will move forward with its
strategic options. Any drilling programmes are expected to be done with farm-in
partners.

Colombia

Subsequently, Chaco was 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 exploitation permits created a very favourable
investment environment. Chaco has teamed up with strategic partners who have
many years of experience operating in Colombia and through whom it has applied
for exploration and exploitation permits. There has been a small investment to
get to this stage, but the presence of the Asuncion office has allowed this to
be minimised. Further news concerning these applications is expected during July
(For commercial reasons, no further information is being given at this stage).

Enquiries :

Martin Groak, Finance Director
Chaco Resources plc
tel : 07949 209 301

Ruari McGirr, Daniel Stewart & Company plc
tel : 020 7374 6789

The Directors of the Company accept responsibility for the information contained
in this document. To the best of the knowledge and belief of the Directors (who
have taken all reasonable care to ensure that such is the case) the information
contained in this document is in accordance with the facts and does not omit
anything likely to affect the import of such information.



This information is provided by RNS
The company news service from the London Stock Exchange
END

And still nobody interested in these, chp should have a steady rise through to 18 july when the EGM takes place, then who knows could be some good news revealed.

CDS Plans AIM Listing Ahead Of Five-Well Programme In Paraguay
CDS Oil & Gas, the Paraguayan exploration firm, is pressing ahead with plans to list on Londons Alternative Investment Market later this month. The listing and institutional placing, designed to raise 5 million to 7 million, is being vigorously pursued by the CDS management despite the shockwaves still reverberating round the market in the wake of Regal Petroleums recent announcements.

The company plans to use the proceeds to drill five wells on its acreage in the Chaco Basin of northwest Paraguay, close to the border with gas-rich Bolivia. CDS holds 100 per cent of three blocks: the 400 sq km Gabino Mendoz block, the 4,911 sq km PG& E block and the 23,899 sq km Boqueron block. Its a region that has seen sporadic but sparse bursts of exploration activity - and very limited industry interest in the past three decades - with 26 wells drilled between 1947 and 1996, of which 22 had hydrocarbons shows. Only one of these wells (the 1993 drilled Independencia-1) was production tested. CDS re-entered and re-tested the well in March 2004, when it flowed at a rate of 960,000 cubic feet of gas per day. Although sub-commercial, the flow rate did indicate the presence of an active hydrocarbon system in the region.

These 26 wells were never followed up for a variety of reasons: oil and gas prices were too low at the time to support development; there was limited access to the Paraguayan Chaco Basin; poor production technology had led to unreliable results. As a result, the country has been largely overlooked by the industry: until now.

Eighteen months ago there were 40,000 acres under concession law, said CDS chief executive James Wade, who has 34 years experience in the resource industry and is a former CEO of Bitech Corp. Today 26 million acres are under concession law application as more people are following us.

The whole dynamic in Paraguay has now changed: oil and gas prices are riding high, access to the Chaco Basin has improved, natural gas has become a desired commodity and there have been great advances in production technology, particularly the mud systems that are thought to be the cause of formation damage on those wells drilled in the 1970s.

Historical third party exploration programmes were not successful because of mud systems that may have caused formation damage, added Wade. Modern drilling techniques, mud systems and logging tools which have been developed during the past 30 years should permit us to mitigate these problems.

Paraguay also offers a favourable licensing and royalty-based regime and, since the overthrow of the Stroessner regime in 1989, its democracy has proved resilient to coup attempts. Theres also a ready market for any commercial finds: the country consumes around 28,000 barrels per day of oil products, all of which are imported, while there are gas-hungry markets in neighbouring Brazil, Chile, Argentina and Uruguay not to mention the home market. Significantly, CDS has been granted a right of way for a pipeline following the Trans Chaco Highway and the centre of its acreage lies 250 km from the Argentine-Chile pipeline infrastructure and about 350 km from a Brazilian line. Pipeline construction would also be a relatively simple job: the terrain is flat with very light vegetation.

Its this combination of factors that has encouraged CDS to pursue a multi-well exploration campaign on its Chaco Basin properties. Each well will cost around US$2.5 million.

We believe we have a pretty good project here, said Wade, who, with co-founder Daniel Morrison, has spent several years digesting and analysing the existing seismic and well data on the blocks. This seismic-modelling and number-crunching effort has identified 12 leads, of which five will be drilled this year.

These five wells are twins to the existing wells, explained Wade. Were basically stepping out 200 metres from the existing wells.

There will be two wells on the Boqueron block: Alicia-1 and Emilia-1, both of which were first drilled in 1971 by Pennzoil and encountered oil shows. The Gabino Mendoza block will see two wells: a follow up to the 1967 Placid Oil Mendoza-2 hole, which had oil and gas shows, and another hole on the Independencia structure, which has flowed sub-commercial quantities of gas. One well will be drilled on the PG&E block: Julia-1, a follow up to a 1971 Pennzoil well, which had oil shows.

A report by the Scott Pickford consultancy put the combined unrisked recoverable resource base at the Emilia-1 and Julia-1 prospects at 75 million barrels of oil.

The crude here is light - around 38-42 degree API - and sulphur-free. CDS reckons a successful well strike could flow between 200 to 500 barrels per day and an early production system could see the wells generating production within three to four months. The first well will spud in the first week of July and the first drilling results should be out in September. Given that previous drilling has had an 85 per cent success rate at finding hydrocarbons, it seems the main question will be whether the reserves are there in commercial quantities. Wade believes the work undertaken over the last couple of years has mitigated some of those risks but, taking a conservative approach that other AIM players might have done well to emulate over the past year, he stressed: You never know until you drill.

This share price is a joke. They are rumoured to be buying a site that is already producing oil in Colombia. They have a market cap of 16mn. One poster on advfn suggests they will be producing 800bpd. If so they would have a cash flow of 9.6mn a year, every year. This virtually gives away its acreage in Paraguay, which I note is much bigger than CDS Oil and Gas's - who are hoping to list on AIM for around 28mn.

Today has been the first day I have noticed a constant flow aof small buys. 1000 here and 2500 there. This is beginning to get noticed, has fantastic prospects, a first rate management team and is currently massively undervalued.

I think that this should double from here upto the 18th July.

mabel

I have just spoken to my contact on this one (mentioned in my post of 11/6/05). He is confident that the EGM proposals, if passed, will give the Board the flexibility to really take CHP foward. He knows those involved and reckons them to be capable of spending any cash raised wisely.He did say that he thought it would require patience but that the y/e sp would be significantly better than today's 4.3p.

britishbulls.com have changed there stance on this from a sell to a buy.
Mabel do you hold these?

forest.

Yes I do. I have held since Aug 04 and I will be holding until at least Aug 06.

mabel

A very good last couple of weeks, i thought we would have had a small retrace this week. 17 more days to the egm, God knows where this will be by then.

mabel
well done

I got in a few weeks after, day before the suspension

I recommended them to a friend and he got in the day before susp also. He paid less than me. Something like 1.83p

I paid 2.2p, thought we might see some newspaper reports this weekend nothing so far. Moneyam bb layout changed, looks better!

test

Mabel

Are you still in these? chp looking better & better all the time, new eod high if we can hold onto today's gain.

Comment at the EGM was that a deal would be finalised around 29/7/05. Looks like it's close to being a reality based on the sp movement.

Some big buy's gone through lately, could be ppl in the know or buying on spec whichever, finished the day on a new high. News soon?.

CHP was due to report a significant deal in the last week of July according to comeents circulating at the EGM. The strengthening sp suggests that this may have been delayed but is very close to happening. The Board reckoned that if a placing was needed to make that deal possible the shares would be placed at a premium because the deal would be so well geared in CHP's favour. Might be worth a punt this week?

Up we go again.

When CHP announce their deal, keep an eye open for the assumed future price of oil factored into the deal. I suspect it may be around the $45/barrel mark. My intuition is that that might be the low price point for oil, not its future average price. Doubt there is much longer to wait on this one, with another tick up this morning. Looks very pregnant!

CHP can take as long as they wants to make an an announcement, as long as the sp keeps rising. All buy's so far today.

The trades for today are still all Buys. The news has to be close to an announcement.