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.

Maybe a long wait now, as always in this game.

forest, I heard that a decision on the main deal is due on the 19 August. ie next Friday. If it goes CHP's way they will be really well set up in oil production, much more predictable than the exploration deals announced yesterday. The mgt. team here are considered top class by my mining contacts so expect them to win.

Well just decided to join you guys on a speculative punt with 25000 (shares that is - not 's)

Baza

Welcome aboard! This promises to be a good punt and without needing to wait too long.

Sharesure hi,
I notice on other bb's they are not so sure the next news will be an actual production deal.
You seem fairly sure it will be, do you have specific reasons for this view?

dibbles, yes, I do. I rate this being a reality by next weekend or very soon after that.

I reckon the sells v buys pattern showing today should revert to buys oustripping sales fairly rapidly as next Friday's deadline approaches and others realise they have sold on the wrong news.

Got in at 5.45p, you can let it move up now.

Hold on! I might want to buy some more next week

Good thinking, cancel that last instruction!!!!!!!

Really think that this is going to be share of the week; some interesting Buys. Would think that second half of this week is going to produce news on the Colombia oil deal. If it goes CHP's way, and there are a few options on that front, this stock will go vertical. The downside in the current market looks negligible.

CHP is marking time this morning. Some very small buys, way different from some of the larger blocks of shares bought yesterday. Past few days it seems that many long-standing Gold Mines of Sardinia shareholders are using this opportunity to move on; reckon that will prove to be an expensive mistake. If GED can be capitalised at 66m based on producing 2000 barrels/day CHP do not have to produce much to warrant a trebling of the sp. The Colombian prospect could be much larger than that.

Correction to earlier post. GED now has a mkt. cap of 93.6m. It gets its oil from Colombia, so is a good reference point for what CHP will become if it gets the development deal it is currently awaiting news on.

Two days running someone has sold 500k+ so they obviously don't see the potential.
Nice trickle of buys coming through today though.

dibbles, Don't forget there are a lot of ex GMS shareholders on Chaco's register from before the name change and subsequent transformation from trying to deal with Italian bureaucracy to get gold mining rights in Sardinia to now exploring/producing oil. The Paraguayan licences are supposed to be in very promising areas, but the anticipated Colombian production deal is an altogether different league.
GED is valued at 93.6m and produces 2,000 b/d in Colombia. CHP's deal would give them 10,000 b/d; that would give CHP a mkt. cap. of 468m, equivalent to 1.20/share! Even if it took three/six months to get that production to that level, any announcement this week that they have secured this contract will provide a share price hike like nothing seen this year, including White Nile.

Sharesure, assuming it were as big as 10,000b/d why would the current holder let that slip through their fingers?

Dibbles, ignorance on their part? maybe to use up losses? thinking 'we've been here before'? which we haven't since this a new mgt. team. Other than that I can't help. Guess we have all had a stock somewhere in our investing life which we have sold, only to then see it rocket. I have had two like that where the idea was right but my patience wore out. I hope this is their time to experience the same thing. It hurts!

Sharesure, I didn't mean current chp holders, I meant current holders of the TEA?

Dibbles - 'Cos they need access to a lot more capital over the next 3 years to pay for exploration, analysis and eventually drilling - so they needed access to the best market in the world for it - London AIM.

Sharesure - where do you get the 10k b/d figure from? I haven't come across it in my research.

sd

Dibbles, sorry, misunderstood the question. There are a few large exploration companies which have been unsuccessful in South America for a range of reasons - lack of local contacts at the right level, not having the right locals on the ground, lack of political connections etc, before one factors in the risks of drilling failures. There are one or two large exploration companies which have already stated that they are scaling down what they do in South America. So maybe they will just abandon trying to compete with smaller, and more nimble, outfits like CHP.
Stockdog, it came from someone I know in the mining sector who is, more often than not, very well informed. I rounded down what I was told. We have not got long to wait to see if he is right this time. CHP's mgt. team are well regarded so it might pay to follow them anyway, with or without my contact's comments.