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.

Just wondering what a placing actually means.Is it purely aimed at institutions because of the volumes involved and why at a premium to the current shareprice, isn`t that unfair on all smaller holders. I currently own 500000 of these but i didn`t get them at 6p. Any comments welcome.

pisces, companies need cash, institutions have loads.
To part them from it you have to give them a good story and a good price.
After all they are taking a risk and losing interest on their capital, bless em.

p.s- a placing is the issue of new shares to raise cash for the company roughly.

Dibbles, thanks for info, but how do we know the placing was fully taken and if so why no increase in the price, surely a full placing would have a knock on effect.

allthose unnone purchases are buys.some are mine.

pisces, don't know if it was fully taken up or not but it raised what they need to move forward with Alea project, without it we'd be back to 4p.
I think as it sinks in and investors realise the value of Alea + Paraguay potential + any new projects, the sp and the tipsters will catch up imo.

90k top-up at 6.65p is my work done for the day.

Any chance of an increase in the SP tomorrow?

sorry, bodeng, last orders are at 4.30pm - try again tomorrow for Monday!

sd

I thought these were going to go up to 12p after the placement at 6p.

aldwickk, you need to remember that the placement represents a share dilution. it's turned out to be 16% rather than 22% (if the Board had used all allowed 125M shares) but nevertheless it's a dilution and in theory the SP should drop correspondingly - and it hasn't. also the market will be wanting to see if the buyers of these new shares are going to dump them on the market on 1 November for a quick 10% profit or hold on to them.

given that placements are normally at a discount to the true SP even after the dilution effect, I think the placement has under-pinned the price and shows this stock is undervalued. the market cap as at 1 Nov will only represent the repsol deal as it stands today. therefore further positive news from Colombia or from Paraguay should lift the SP significantly.

I'm taking re-assurance that today has seen over 5M sells and the price hasn't dropped. it looks like a number of people were expecting a big jump after the placement news and are getting out when that has failed to materialise.

we've already seen a "bubble and burst" on this share caused by undue speculation. chances are the market will want to wait and see the next set of news before re-rating CHP to its right price.

however, all the above is imho. WDIK, PDYOR.

camlad

Well put camlad....
Surprised to see no movement today though considering some of those trades going thru???
Perhaps an order being filled behind the scenes?
Anyone got any ideas?

Watching on Bloomberg - ticking higher now

Yep, thats better.
Looks like some of the bigger trades were buys then.
Holding it back and letting mates in cheaper perhaps????

Antone know where chaco are listed,can`t find anywhere in financial times.

Usually under AIM stocks I beleive

Baza

Further news on Colombia would be a bonus before the new shares are admitted on Tuesday!

This is my selection for the "UPS" next week CHP

Share	Volume	Chart	News	Various
CHP price 6.95p	Very large volume last Friday about 4 times the usual	MACD just crossing on the way up, a double bottom is being form, next stop around 8p+	The placing at 6p last week to raise 5M to fund Repsol joint venture in Colombia, was well received by Institutions only needed 10% discount to get it out	High expectations on last deals in Colombia's Putumayo Basin and Paraguay as Oil is already there

M P H

I notice WDBM have reversed their position, have you any thoughts on this, I assume its either an error or something to do with the placing, you can email me if you like

Stewart

Master, I assume your opening price should have been 6.95p, but good start to the day

Stewart, I expect he's just letting a bit of stock go for his market makers books. He has been a seller briefly before but soon shifted when there was any sign of larger buys going through him.

Nothing to be concerned about IMO.

Also End of Month ?