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.

How long before the market properly wakes up to CHP's actual & potential assets? I wasn't overwhelmed by yesterday's uptick at all.

ss,

Do you think that the uncertainty over the placement price will hold us
back a little?

cc

Morning all,

Perhaps someone could explain to me, I have seen various valuations of the value of the oil in the ground in respect of the Alea deal , I calculated it at about 11p however why have we not seen a significant rise in the SP yet, surely none of this is already factored into the price.

I understand that it may take a little time to come through into the price but the SP is actually down slightly as I post , am I missing something here?

Market sentiment or lack of market awareness perhaps is keeping this down!! - just needs a bit of publicity

they all ways buy after the rise thats why fund managers are crap.i would not trust them with a penny.

CC, possibly, as I cannot see why else this stock doesn't move up sharply. Maybe it takes the weekend press to involve more investors. The only consolation is the knowledge that in the end value always get reflected in a share price; in my experience if a stock stays undervalued too long it gets taken over.
Stewart, I don't think you are missing anything on this one; it's just one of those times when the market has to catch up. Since there are at least 3 pieces of impending news, 2 in Colombia and 1 in Paraguay, there is likely to be plenty of opportunity to jolt the sp into life. If you take the view that a 50p sp will follow getting Alea oil out to the well head in say 6-8 months, I reckon it's going to be easy to just sit on your shares for that, knowing that other favourable events may happen in that time frame.

Also, it is a very red day today......

.......except for seo !!!

Baza

as a general comparison, accepted all the other variables, (incl. poss total reserves, amount of exploration activity, costs of delivery to land and safety factors in areas concerned, plus many more)


sh.p, Mkt cap, bopd, ratio of Mkt cap/bopd
CHP 6.9p, 27m, 533 (est), 20, (bigger the better)

EEN 166, 80, 4300, 53,

DNX 820, 600, 18,800, 31,


accept that this is a generalisation so would value thoughts

the only thing holding this back is the state of the market.

no, Tanker, you're quite wrong - the only thing keeping the price low is the low price that anyone's prepared to pay for it - nothing to do with the market, silly. lol!

Have you tried brain surgery, or are you more drawn towards rocket science. Let me know if you try either - so I can avoid!

sd

I believe that the major uncertainty still hanging over this share is the placement volume and price. The Repsol deal cannot go through without raising funds via placement and the potential dilution could be UP TO 30% of shares (roughly equal to a 25% reduction in SP). I believe the lack of placement news is holding back SP progress.

The SP calculations on this thread tend to use some level of pre-placement volume of shares but still assume the Repsol deal is in place. I don't think that is realistic.

Once the placement news is released and the impact known/understood/absorbed, then the SP on this share can move onwwards to a true underpinned valuation- the uncertainties will be reduced dramatically. All the potential (and probable) positive news can then have a full effect.

As usual all the above IMHO. WDIK, PDYOR.

camlad

Does the placement have to be announced by a certain date?

I have always understood the placing proceeds to be required for the development of Alea and any other TEA areas that are gained. If that is the case, and CHP is near to being able to announce the outcome of deals 2 & 3, it might be in all our interests for the company to delay finalising the placement, particularly if they were suddenly to be in a position to announce up to 110m barrels more of recoverable oil.

ss,

110mbo!!! About 4 share at wellhead!?!

110 x $35 divided by 1.75 at 500m shares = 4.40

I appreciate this is a very simplistic view but if i'm half right then.......

cc.

CC, but they did say that they had competition for those two deals. But if they do win, yes, you are right, what a prospect!

CC, Also need to factor in that CHP get 55% of those two potential deals (so you were sort of half right!), the other 45% goes to their local Colombian trio; but it's still excellent.... and then there is Paraguay. One day soon in a better market this will get the recognition it deserves.

Bodeng,

at the EGM and again at the AGM, the Board were given the authority to issue up to 125M new shares for placement. The time-limit on that authorisation is 15 months.

However, of course, the company has to comply in terms of reporting significant events under stock exchange rules. Therefore it is unlikely that the share placement has yet been finalised.

I agree with SS that it is in the company's interests to announce this (dilution news) at the same time as a balancing announcement of good (value increasing) news.

As usual, we'll just have to wait and see.

WDIK, PDYOR.

camlad

SS, when you talk about CHP getting 55% of the potential new Colombian deals, could you clarify please that at the AGM was "CHP wi have 55%" or that "the JV (including CHP) will have 55%".

I'm trying to understand whether, the CHP JV is going in with another partner in the same way as CHP went in with Repsol on deal 1?

TX,

camlad

Camlad, I don't know the answer to that. I suspect that the Colombian trio get 45% of whatever is due to CHP. After all it will be in the interests of both the trio and CHP to do whatever is necessary to move a deal from exploration to development. This info is likely to be published at some time soon when the news on further deals is announced. Whatever the outcome the impact on CHP's sp should be dramatic - although on current showing that may look a far fetched expectation.