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.

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

If only!!!

I think you mean SEO.

Now 1:5 @ 6.6:7 & 50k v 250k

WDBM high bid @6.6

Sharesure
Thanks for the AGM info-any idea when news of the placing will be released?

Bodeng, No; I hope that they will have the option to delay a little until the mkt. settles. With WDBM still soaking up shares the current weakness is only short term in my view.

.

Christ has anyone read Advfn its turned into a warzone!!

SS,

Any updates please mate, we need your info just as much in the worrying times as in the good,

cc

CC, Appreciate your concern. When a bunch of shorters get their teeth into a stock there is not a lot others can do other than use it as an opportunity to increase their own stake, assuming available cash. If anything the AGM helped make me more sure that this mgt. team will turn CHP into a very valuable company in quite a short time - 6 months or so. There will be several points at which CHP will be able to report further progress over the next few weeks eg deals 2 & 3 in Colombia. If either, but particularly deal 3, is successful the effect on the sp should be stunning. Apart from which, I really liked what they said about their Paraguayan blocks (1 & 2) which they will be progressing simultaneously with Colombia. If they also get block 3 in Paraguay in the next few weeks so much the better.
Plenty to go for, (my target is 90p-100p in 6-8 months) and in my view, a share where you just have to sit back and let the events unfold. In the meantime we just have to put with shorters having their fun, but in my view it won't last that long.

ss,

Very much appreciated, rough with the smooth and all that eh?
I have made my bed now and I will lie in it for a year or so and if your predictions come true I will look back and laugh about this week.
I'm sure that many who have jumped ship in the last couple of days will be watching and jump back in just as quick when we get some more good news.

cc

1:5 @ 6.6 : 7 and 50kv250k with WDBM on the high OFFER

WDBM high bid now @ 6.6

Yep - it has moved around , now
4:2 : 6.6 : 7 and 200k v 100k with WDBM on high bid

Sharesure
I hope we do get to a pound but do you have a figure in mind if all the deals do not come through as a MORE CONSERVATIVE sp.

MPH, you get my email