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.

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.

Does anyone have a price target for this??

Nope, waiting for news any day now.