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.

Has anyone got any timescales for likely oil production from Alea? TIA.

Dibbles, 6 months was an estimate I was told by a contact who had been presented to, and that was over a month ago. Although that seems quite quick the reasoning was that the logistics to be overcome were not considered to be that great.

Couldn`t resist just bought another 222000 of these little gems.Hope im`e right.

Copy of EK post on other bb,

hamblet,

There is no confusion: I took 2m CHP in the placing at 6p. I am told that if CHP really gets lucky this is a 200p stock.

Simon Cawkwell

cc.

He has taken 2m - so he is going to talk it up - well lets hope so - but I think he is being greedy - I have set my sell order at 1.75 !!!

Baza

What will be the price if they are not so lucky 1 ?

What has luck got to do with it - this is a fine company in the making. It will take hard work, guts and a bit of finaace along with a shrewd management team to make this fly.

Baza

Lots of buying activity now

Although the main focus for shareholders is the outcome of the TEA legislation applications in Colombia it's also worth watching the imminent outcome of some drilling CDS are doing in Paraguay on a block close to one held by CHP.
If there is oil in the quantities a lot of oil folk think there is in that region CHP could become the South American 'Cairn Energy' (CNE) and look what happened to that even though its recoverable oil is probably only around 600,000 barrels.

Sharesure,has there been a placing yet to raise funds to get oil out of the ground,if so do you know at what price. Why no movement in the price today, or is that down to the fact that a placing has happened at a lower price.Any thoughts would be welcome as your posts are very informative.Nice to have Simon Cawkwell onboard, im`e sure he doesn`t buy duff shares willy nilly.

A lot of sells went through towards the end ?

Baza

pisces, Thanks, hope what I post helps. I don't know anything about the Placing (other than when I asked to be included I was told I would be better off buying my shares in the market since they would go at a premium), but if it had been settled it would have to be announced. I am not concerned at it taking time - it may mean that they are striving for a better placing price and need to await a little more news from Colombia in order to convince the institutions that they are not paying too much. That is only conjecture on my part - it's what I would do if I was Martin Groak.
As for EK's appearent purchase, if it's true, just mystified as to what took him so long since the potential news we have all been waiting for is not even wuithin CHP's control; we all have to await the workings of Colombia's Hydrocarbons Ministry and it probably is more productive to wait rather than be to pushy with them.

Slow start today!!!

Slow start all round I think - go and read the nowt thread for a bit of light relief

Baza

News will come through in time we will have to wait!

Chaco Resources PLC
27 October 2005


CHACO RESOURCES PLC

('Chaco' or 'the Company')

Placing to raise up to approximately 5 million

The Company is pleased to announce that it has conditionally raised 5,080,840
(before expenses) through a placing ('the Placing') of 84,680,667 new ordinary
shares of 0.1p each in the capital of the Company ('the Placing Shares') at a
placing price of 6p per share. The Placing proceeds will be used to fund its
commitments under its joint venture with Repsol Exploracion Colombia S.A.
('Repsol') in Colombia.

The Board of Chaco Resources plc announced on 3 October 2005 that it had entered
into a farm-in agreement with Repsol to earn a 25% interest in the Alea Field in
Colombia's Putumayo Basin (the 'Alea Field') by funding certain appraisal
operations.

The Company's financial commitment required to earn the 25% interest is capped
at US$7.4 million for the first phase of appraisal of the Alea Field. Chaco has
agreed to fund the cost of re-working existing seismic coverage, re-entering and
testing an existing discovery well, which flowed oil at 533 bbls/day in 1988,
and drilling a new step-out well to determine the possible lateral extent of the
field (the 'Project').

The funds raised by the Placing will enable Chaco to meet its obligations for
the Project. Any funds raised pursuant to the Placing but surplus to those
required for the Project will be used for general working capital relating to
the Company's ongoing activities in Colombia and Paraguay.

It is anticipated that application will be made for the Placing Shares to be
admitted to AIM on 1 November 2005.

Chairman, Jon Pither, commented 'This successful fund raising in what was a
weakening oil sector market has highlighted the intrinsic value of the Alea
development project. We also believe that investors in the placing recognise the
opportunities the Company has to identify additional low risk development and
exploration projects in Colombia through its excellent local contacts in the
country.'

Further details of the Project and the Company's other projects are contained in
earlier announcements released by or on behalf of the Company which can also be
viewed on the Company's website*.

So - are we likely to see a further weakening of the share price until more news happens ??

I wouldn't have thought so bhunt. Institutions will have wanted more than just a token discount. If they are paying 6pence then Chaco's worth 8p+ immediately, even without any other news.

The calculation that Martin Groak did in an e mail to me earlier suggested Chaco is worth at least 12p now.

Before Colombia was even mentioned the share price was 4p.

Net value to Chaco @ $50 per barrel = 30million minimum.

Those involved in the placing have got a very good deal and it was suggested earlier that the placing was oversubscribed.

mabel

perhaps I am being impatient - I was kind of expecting this to have jumped to 7p on the news of the placing - so am a bit disappointed. Perhaps as the placing seemed to be common knowledge - it was already priced in ?

Fingers crossed

Baza