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.

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.

the chart looks weak!!!

i reckon bad news or a dilution coming, just a guess on my part

aimtrader

Rather than just post one line of ill thought out useless information on the board why don't you do some research to support your statement. I am not even going to comment on your post because clearly you know nothing about Chaco.

I see you posted on 5 consecutive boards last night after 10.00pm did you get back from the pub early last night, no wonder you did because if your chat up lines were as interesting as your post you need not have gone out.

Aimtrader,

You worked out from the charts that there may be a dilution coming?

Brilliant piece of work!!

cc

Aimtrader, everyone knows CHP are going to have to issue more shares to get Alea going. The key question is at what level are those shares to be issued. There are one or two brokers who sufficiently rate what CHP has got itself into as grounds for the placing to be at a premium. In support of that, when I asked to be included in the placing for another chunk of stock it was suggested that I would be better off buying that line of stock in the market. We'll see.

ss/ MPH- as an interested observer, having been in and out of CHP since 2p, I am interested in your thoughts regarding CHP's rating compared to EEN and, moreso DNX, now in full production though no more rated than CHP re: Mkt cap/ bopd. ref post 625

ddoc2, You will have seen figures MPH and I have produced on CHP; as a benchmark I used GED as a compariso,(they have interests in Colombia) and scaled back to allow for CHP needing to build a reputation for delivering the goods. If the company stick to what they said at the AGM they should produce 3 more separate pieces of news over this week and next; two items relate to Colombia and one to Paraguay. Assuming that that news is positive whether that will mean that the sp starts immediately to take account of CHP's growing asset value (it hasn't yet even on the Alea deal in Colombia) remains a query; however in my view the mkt will catch up to what CHP has and can achieve at some stage.

WDBM still buying at high bid.

ss & mph - Thanks for the ongoing commentary. Very much appreciated.

Baza