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.

Now 2:1 @ 7.25:7.5 and 100k:50k

db66,

I posted the above so people could get a flavour of the meeting but remember Victor is a very bitter individual because of dealings with the company under the names GMS, I do not know what happened but it had made him a very disgruntled shareholder.

I assume it is something to do with a dillution, but that should not matter to us in October 2005, I have him filtered again in ADVFN so that is what I think of his comments, however some people on here did want to see the summary so I felt it not unreasonable to post, if anyone has an issue with the post let me know, I have no concerns with removing it.

Stewart - I would leave it - you have given good health warnings to all to read with a pinch of salt - thats my view - but being selfish - now that I have read it - I dont mind if you do delete it

baza

I will do as full account as soon as I can later but the post which Stewart has copied from another thread comes as a surprise to me . I was with three others at the meeting and our take was very different. At the previous EGM there was only one other private shareholder who I did not know. He made some factuous comments and in the end two of the shareholders (one of which was me) told him to shut up because he was being gratuitously rude and really couldn't make a coherent point. Chairman John Pither was more than patient with him. The odd thing is I didn't see him there this time so if he claims to have been at both meetings then he must have been in heavy disguise today!!
My summary of today is that CHP will go very well ( quite capable of having 400m barrels of recoverable oil in the near future if their plans turn out as they hope. Certainly there will be some things that change but even if they only achieve 25% of that it is still a huge figure for a company the size of Chaco. Also the comment re the placing for the deal just announced is being done at the moment and I doudt that it will be allowed to go at under 8p from what I gkeaned. Much more later or early tomorrow.

Stew,

I would remove it and not give the loon the time of day. We have put up with months of insane dribble from this clown for months on advfn, he is cleverly putting doubt into minds and I personnally would not help him in any way.

cc

Thanks sharesure, very kind of you to take the time to post your summary for those of us who could not attend. I look forward to reading it.

I am waiting for a phone call from a shareholder who also attended. I will post any extra info he gives me if not already covered.

Stewart thanks for posting i like to read other peoples comments but what i`m really looking forward to is sharesures posting later tonight or tomorrow.
Its good to have someone who`s willing and able to spend the time at these AGM`s
DB66

Sharesure, I am going to remove Victor's post as I posted it for a general overview and I do not want to cause mischief, it was posted with many warnings, but there it has gone.

Sharesure I hope you were not offended it was just that some on here wanted an idea of how matters went, it would seem some untruths were stated and for that I apologise.

Sharesure - thanks for that quick feedback - really looking forward to your analysis and feedback later as you always present a balanced view.

Apologies if I have upset some re the post from ADVFM for asking it to be posted.

baza

Stew,

Have you read valentines post on advfn, he too has been to AGM.

cc

CC

Yes excellent, I wish I had not posted the other one, but I can do no more than what I have done and remove it

I've been on ADVFN and had a look. This Victor character seems to have slated chaco for the past few weeks yet claims to have attended the AGM and then proceeds to compile a summary of fiction mixed with fact!

What sort of man spends his time deramping a share all day every day on BB's and then attends the AGM!!!??

No offence taken re the 'AGM Report' from Victor. When I reread it I do seriously wonder if he was at the meeting or whether he had a mini brokerpre-presentation (but not today) and decided to short the stock. Anyway I'll start sifting my copious notes of Graham Steven's presentation - estimates/forecasts were coming thick and fast! Having bought at prices between 2p and 6p I don't expect to be selling for under 50p but hopefully much more but I do need to run through all the latest information to see what my calculation of the upper limit is. I hope that does not sound like a ramp - it is certainly not intended that way but they are potentially on to some really exciting prospects.

My confidence in this share is renewed. I feel ashamed to confirm that i nearly
sold out this morning at 11.30am. I took some time out and looked at the facts as I see them. Once we have the placement price confirmed, 8p is my guess, this should underpin the sp. I have an average of 5p so was never in risk of losses but I, like many had built high expectations and was already looking at a villa in spain!!

The news from ss and valentine (advfn) looks brilliant and i am now more realistic as to the time scale to achieve the goals.

We have lost quite a few weak holders today which will also be good for the sp in the future.
Keep up the good work everyone, a novice like myself appreciates it!!!

cc.

Thoughts on Chaco AGM.

Colombia.

The Alea deal announced on Monday, 3/10, is for a field Graeme Stephens (GS) regards as the best structure hes seen. It holds 30.8 degree light sweet crude. The deal is the subject of a Confidentiality Agreement with Repsol and at this stage the latter have not agreed what they will allow to be released. That is expected in 2/3 weeks. CHP also want to drill the area to establish if the oil reserve extends into the upper sand strata and also to the spill point before releasing more reserve details. Initial estimates of recoverable oil range from 20-70mb. There are two possible routes to get the oil to market (either to the west or east) which, although they involve pipelines and jungles, do not appear any more difficult cf with other areas of the world where oil is drilled. Any terrorist activity is considered minimal/non-existant at the current time.

As far as value is concerned a conservative yardstick would in my view be $5/barrel in the ground and $35/barrel at the wellhead, of which CHP get 25%. On this area alone that would give very large figures for a company the size of Chaco. Interested in anyone elses views given that the current oil price is well above the wellhead price I have suggested.

As for the Placing to acquire CHPs 25% interest there are no details about the Placing price that they would/could give at this stage.

CHP expects to sign an Operating Agreement with National Oil Company of Colombia within 4 weeks and so revenue should start flowing from this block within months.

There are two other exploration areas in Colombia which CHP are hoping to acquire but they have competition for these. I got the impression that at this stage the company would find it unhelpful to have published any information about what they believe could be the potential of these blocks. Since they expect their negotiations to come to a conclusion within the next 2/3 weeks on both areas it is probably better that any further comment is left until CHP can give that info. Both areas also require more extensive and modern seismic techniques to be applied to establish the potential.

I realise that that is not a lot of extra detail on Colombia but I would not wish to be the one responsible for making their negotiating position any more difficult than it is likely to be.

In conclusion on Colombia I think it boils down to whether as a shareholder you believe the mgt. are competent and trustworthy to pull off what could be some spectacular opportunities. There are those who have memories of the GMS days and the lack of progress in Sardinia; maybe that lack of progress was because they were so honest that they could not find a way of doing business in that area? Of those members of the Board I have met at the meetings so far, and the recommendations that I have from another friend who has known them all a very long time, I am content that I do not have anything to be worried about as far as their integrity and ability is concerned. I also believe that the chairman has a personal ambition to redeem the disappointment felt by shareholders over the GMS time and if he could engineer a rapid increase in the sp to give those GMS shareholders a way to choose whether they remain shareholders or come away with a profit from their GMS investment days then he would.

Paraguay

CHP expect news soon on whether they have been awarded a third exploration area bordering Brazil.

Of the two areas awarded so far, the Parana Basin area extends into a known oil field in Brazil. Only 48 wells have been drilled in 50 years so it is considered by CHP to be largely untested and that modern seismic methods will produce good results.
.
In the north, the Curupayty area has only ever had two wells drilled and both showed oil. However, CHP consider both those wells to have been drilled in the wrong places for a true evaluation of the potential.

George Woodcock (ex exploration mgr. of BP) was quoted as saying that he considered the Paraguayan prospects as being in the richest geology sources he had known.

My conclusion from yesterday is that it would have been great to have more information and I think that the company would have liked to provide that but feel constrained at this stage by a combination of regulations governing what they can say and also the current position with their Colombian negotiations. I am extremely optimistic that the remainder of this year should produce news that will propel the sp forward considerably. I have also made up my mind that I want to stay in this for far longer for what I believe will be even greater prospects unless, of course, something new comes to light to change that view.

Regret that the above does not include more data for others to form a view on the sp in the coming weeks but maybe others want to add to this that from their knowledge.

Ultimately, what will make this share fly is a positive drilling report/upgrade of estimates re the amount of oil in the ground. Until this information is to hand, all valuations must by definition be purely speculative.

The positives about the current situation are:

1. The original geological reports - Colombia and Paraguay - look promising
2. Drilling on dry land is presumably nowhere near as risky or as expensive as
drilling offshore
3. The management seemed to have attracted a high calibre director with a track
record. Presumably he has seen enough to convince himself of the potential
4. The governments in SA seem to be keen to support commercial exploitation
of natural resources in a realistic way.

I am staying put. It may (probably will) take 1/2 years to achieve full potential and there will/could be a lot of ups and downs in the sp during this period, but Rome wasn't built in a day.

For short term punters, perhaps oil exploration isn't the right place to be.

Thanks for that sharesure, the price seems to have backed right off, I expect it's a lot of short termers getting out.
A bit more patience is required for this one, but after this flush out I'd expect the price to creep up steadily as WDBM try to pick up stock and people start buying for the news.

Must confess to jumping on the bandwagon and have just bought 50,000@@ 6.73.

Not sure if that is a reckless trade - but the price looks good condidering the potential upside of this share will hold for the medium/longer term.

Baza

bunt1910,

Well done, I wondered who had bought, I would have bought also at that price but I am full already and have no intention of selling.

Am I missing something here, what has changed Chaco have a wonderful opportunity here to become a medium small cap company. I agree it would have helped their case if they had been specific about the field sizes and they do need to let us know about that placing price, if its 8p then the SP will jump to 9p + right away, but as Sharesure has said the management are in negotiations with other parties and details will be sensative, what they have said is that we don't have long to wait for the outcome of the two applications they have applied for and Repsol will allow they to publish details of the field size they have got very shortly.


These short termers and those with no steel just bail out so quick, it makes no sense atall, I bet the price rises later today.

I would be interested to hear other peoples views in particular on the placing price, MPH, are WDBM still high on the bid?

sorry - wromg thread