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.

There are a few sellers driving this back off highs today. Strange as the AGM is so close and the likelyhood of more news either just before or shortly afterwards is very high.

MPH Tried to get more info. Seems like the AGM will yield more. Was confirmed to me that this deal with Repsol is just a starter of what should be a steady flow of news on assets. A relief as today's announcements really was well short of what was expected and presumably was done to help dampen speculation.

Sharesure
Thanks for the information-Do you think we will still hit 15p in the short term?

well i have now got 300000. of these.looking forward to agm.

Bodeng, there are so many unanswered questions in today's RNS and it doesn't contain any of the info. I had so, I think that this is a holding announcement and I would expect more to be said on Wed. at the AGM. As for sp until Wed. I don't really have a feel for where this should go to but I have no intention of selling yet as I am pretty certain this is only the first of their deals. The other thing to remember is Paraguay; no mention of it today but I was told that there is more to say on that as well.

WDBM supported the price all afternoon which is very encouraging.

MPH, I reckon that does mean that we are right to believe there is more to come either on wed. or very soon afterwards.

Sharesure I believe so. I will not be selling any of my holding with so many questions unanswered. They are not telling us the whole story yet, probably because they cannot. IMO their are numerous subtle clues in the RNS pointing to the fact that this is not the "big" piece of news holders have been waiting for.

Anyone who cannot get to the AGM tomorrow and wants a particular question asked, let me know on this thread or by email.
Seems to be very quiet on the trading front this morning; don't think yesterday's partial announcement was a good move after all this time. If their presentation is as good as it is being forecast it will be, the CHP mgt. might do well to post it on their web site.

Can someone please equate barrels of oil in the ground into a share price?
Say for instance this initial deal is for 50mbo of which CHP have 25%, taking
into account the dilution what sp?

Your assistance would be much appreciated.

cc

CC rule of thumb for Colombia might be $5/b in the ground and $35/b at the wellhead. Of proven reserves it is common to adopt 40% as an average recovery rate. I am expecting that the AGM will reveal a lot more info. than we were given on Monday including comment on other potential licence areas. After that it might be poss. to put some sort of est.'d cap. val. I remain convinced that CHP is going to be a multi-bagger within 6 months.

cc

If we assume that the placing is at roughly the current sp, then they would need t issue a further 53 million shares to fund it. That would mean that there are 443mn shares in issue.

If we also give this oil a value of $5 a barrel (in the ground) then chaco's share should be: 25% of (50mn *$5/1.76) = 35.5mn. This should be all profit and is based on a 50mn barrel field. On a PER of 2 the sp would be around 16p. This would ignore all other assets, developments.

SS

Some questions for the AGM

1. What will be chaco's share of future oilfields?
2. What role will EXPET play, if any, on developing the first field?
3. What role, if any, will EXPET play in developing future fields?

Cheers

Alfred

Alfred, Ok, I will ask. Given the amount of recent sells and the price holding up because WDBM are high bid that all signals to me that tomorrow should be good for the sp.

Its good to get some positive talk. I'm starting to get a little worried but am holding tight. I get the feeling peoples expectations have fallen from where they were. I still feel 20p is realistic but maybe the time scale is a lot longer.

cc

sharesure,

If this is deemed to be a stupid question (i'm a novice ) please ignore.

Will there be any further dilution for future fields?

cc

CC, It depends when those opportunities present themselves. If the come after the first Colombian area comes on stream (?6months?) then a dilution may be unnecessary. If before that it is highly likely.

CC

I can give you my thoughts on share dilution, there would only be a dilution by an issue of further shares if funding was not available from chaco itself, I suspect they will try and bring oil on stream quickly to give themselves a + cashflow and use this cash to fund other developments.

Its all about timing it will depend on the revenue streams and how quickly they would wish to develop any further fields. The companies aim is profit and to enhance shareholder value, they will not want to dilute if they do not have to, remember the directors have options and so it is in their interest not to dilute.

Sharesure
Will you ask for the latest update on Paraguay at the AGM.

Thanx for all the info guys, this is not the time to panic 'sell'.

I read somewhere ' the stockmarket is made by the impatient giving money to the patient' (something like that!)

cc

Bodeng, Yes, certainly intend to; although it has taken a back seat with all the focus being on Colombia recently, I think that a partnering deal on the vast Paraguay licence areas could be a good move. A deal with say a company like Petrobas would give huge credibility in the region to CHP