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.

Wasn't me

It could have been a buy or a sell.

Small commentary in Shares mag.

Saying that the Columbian based oil driller Chaco has gone cap in hand tto shareholders for an extra 5.1m to chuck at its JV out there with spanish giant Repsol. The new cost will go towards developing an oilfield in the Putumayo Basin which flowed 533 bpd when last drilled in 1988.

Baza

gone cap in hand to shareholders
to chuck at its JV .

Think they could have put it better then that.

Agreed, not the best use of words. No mention of the application for the other deals then, or paraguay?

I picked this up from ADVFN - without any supporting data. Has anyone else heard similar ? Is it likely that a deal could have been done that will still take 2+ weeks to sort out ?

"little bird told me that we have the 2nd Columbia Concessions, but will take a few weeks to be signed, sealed etc.
lets go chp."

Surely if they haven't been signed, sealed etc. then we don't have them for certain yet?

Dibbles - that is also my view - which is why I was sceptical - but asked the question in case some of our posters who are closer to the action than me/us might know better - or not.

Baza

The same thing happened with the last deal I believe. The deal was secure early on but the cogs of the Colombian authorities took time to get everything sealed off and official. Only then could Chaco release an RNS.

Everything is pointing to another good RNS, I won't be optimist enough to think we'll see that this week. But as before the delay is looking promising rather than a problem.

Then I guess its patience again - not good at that

Baza

Looks good in the future but hope the price doesn't drift too much!

We seem to be reverting to a previous mode of speculation and "insider news", unfortunately. I see on advfn that we have: won the deals in Colombia; are making another placing at 7p to pay for them; are having a rights issue; and that news will be coming in days or perhaps 2 weeks at the most. with all the conflicting speculation and corresponding uncertainty, no wonder people get the jitters and get out while they're ahead.

as before, the company itself will give us the correct news as soon as it can. the danger is that the PI's will make the pullback worse than it should be before then.

all the above is in IMHO - as is the belief that we're already trading too low i.e. below the currently justified price. at this level I would buy/add if I had the funds because the potential positive newsflow is good and the speculative risk factor is decreasing.

But WDIK, PDYOR.

camlad

Thanks for those reassuring words Camlad. There does appear to be more calm and experience on this thread than others I have visited.

Baza

Assuming we do get the other deals, I'd imagine they will have to fund raise again.
Will they get a further fundraising away so soon after the last?

Dibbles, IMHO the Board are not stupid. they would have known at the time of the placement if they were going to need further funds quickly - especially when they didn't issue all 125M shares that they could have.

therefore logically EITHER they believe they don't need funds OR they believe they can get a far higher price than 6p for the next 41M shares OR they have another way of raising funds OR the next couple of deals will not require fund from CHP (e.g. farm-in with a partner who pays the costs). [There is one other alternative, which is that they couldn't place any more shares and couldn't get the placement under-written, but I personally don't believe that.]

from the above, I would think the Board is confident and therefore any further deal news would be very positive.

I stress that I have no inside knowledge or information. all the above is my opinion based on logic and publicised information. It is one of the reasons I'm bullish on this share right now and why I believe the SP is too low.

WDIK, PDYOR.

camlad

camlad, thanks for that.

Quiet day today!

At least the sp is holding

Back from brief hols. and interested to see all the posts. I agree that the placing at 6p probably encouraged the company to only go for what they knew that they needed now. I was told that the speed with which they expect revenue to flow from Deal 1 should fund the rest but if more funds are required then at least the sp should start climbing. It's time that some of the tip sheets picked up on CHP.

As for the current SA conference and anti USA protests it will be some comfort that in Colombia the markets for the oil from Alea can be as easily focussed to the east or west so CHP are in a good position.

Could I recruit one of you knowlegeable folk out there (or more) to fill in a bit of history for me, please. In December 2000 I bought 3500 shares in Gold Mines of Sardinia (cost 455) for my grand-daughter for her 18th birthday. Principally as a bit of fun out of which she could make a few quid if it went well, but if it didn't she wasn't losing any of her own money.
At the time I was getting regular reports from Williams de Broe on a variety of financial matters and, as they seemed to be agents for GMS, regular updates on what was happening in the company. What struck me most was that there was plenty of cash in the company, which reassured me. WdeB regularly marked them up as a buy.
My son-in-law's over-seeing of the investment has been patchy and I don't think he has kept all the correspondence. All I know now is that Chaco seems to be the controlling company, though wasn't there another company (Fedoro or something like that) between the two? I don't get reports from WdeB any more so my ability to keep tabs on what's going on is virtually zero now. There is the net but that, I find, is too complex for my limited capabilities in such matters (I am not a professional!).
Though I suppose I could get more info via Moodies or Extel at the library (if they still provide the service) I would be grateful if one of you could tell me (with the facilities available to you) the number of shares my grand-daughter should have today. I am pretty sure no additional cash has been shelled out for rights issues etc. I do suspect that the original 455 may look a bit sick today and I'm surprised that things went downhill from a cash-rich base.
Sincere thanks in advance.