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.

Someone posed a good question on another bb, does the non-exec's purchase mean chp can't announce price-sensitive news for the regulated time now or doesn't it apply with placings?

dibbles

The chairman would not be able to buy shares, in a placing or on the normal market, if he was aware of unreleased price sensitive information.

At the moment chaco are waiting for news about further prospects in Colombia.

It is likely that he does not know the outcome and so does not know price sensitive information. Therefore news regarding these contracts will come when the Colombians are ready to deliver it.

Alfred

If that is so - it means we can forget any rumours that are doing the rounds that they have already secured the next concessions.

Bhunt

The placing was completed on 27 Oct.

They might well have secured the next concessions since then.

Valid point Alfred, either way a bit of a gap in getting the RNS out. Here's hoping we do see some other positive news this side of Christmas.

Alfred - fair point

Greyhound

In addition to today's positive news I am hoping that there will be plenty more before Christmas. They have already said this themselves at the AGM.

This has all the hallmarks of being a real cracker. In my view the only problem lies in the shortsightedness of some of the shareholders.

Alfred

Alfred - I agree with you. I like to hold my AIM stocks for 2 years if poss, because of the 25% tax re business assets - could be very beneficial on this one!

Agree with your comment, alfred, re placing. I think that subsequent to the Placing they have become very confident that the additional deals in Colombia are pretty certain and are probably only awaiting the administrative stamp (?mid next week). What is also significant is that the Chairman could have bought six times the number of shares last year, so if if he is that cautious as to have left it until now, he must have plenty of confidence now too.

When the share price, had a small rise this morning, I could notice the shape of
a CUP and HANDLE developing, so after hours I managed to build a chart, the way it should go ahead.



That is the way that usualy develops, CHP is a much better shape than this example below

Cup and Handle

A pattern on bar charts resembling a cup with a handle. The cup is in the shape of a "U" and the
handle has a slight downward drift. The right-hand side of the pattern has low trading volume.
It can be as short as seven weeks and as long as 65 weeks.

As the stock comes up to test the old highs, the stock will incur selling pressure by the people
who bought at or near the old high. This selling pressure will make the stock price trade sideways
with a tendency towards a downtrend for four days to four weeks... then it takes off.
Below is an example of a cup and handle chart pattern:

Nee some buyers

I still think shareholders should deduce a great deal from the Chairman's purchase of shares in the Placing. Having spoken to him at each AGM and EGM it is my view that he is a cautious individual who does not take risks with his money. T/O is so low it doesn't really matter.
Next lot of news is sure to be out soon and will show others what this stock is about. Don't have much of a feel for when that news will be as CHP are likely to be in the hands of the Colombian Hydrocarbons Ministry on that one. I'm certain that the news will be positive for CHP; if it wasn't going to be we would already have heard.

I found this yesterday:

Tim Treadgold: Briefcase - London listing lesson for St Barbara
WA Business News, Australia - 8 Nov 2005
... The winner was Chaco Resources, a business once known as Gold Mines of Sardinia (GMS) which, despite its previous name, was very much a Western Australian ...

LINK

However I cannot access the article as it is members only. Does anyone have any idea what this is regarding? Chaco have won something but what!

It also shows up on a Google news search:

Google news

Does the date of the article, 8 nov hold a clue ?

Master RSI, just one question - is that cup half full or half empty?

sd

The article below reads well for companies in the Oil and Gas sector, you can see why Chaco have moved into Colombia.

http://www.resourceinvestor.com/pebble.asp?relid=14489

WDBM soaking up those sells.

M P H

Well good to see them picking up the sells, there seemed to be about 1.2M go through after 12.00, not alot really and I guess the reason for the fall back to 7.55p. Funny how MM's never mark it up as quick as they mark it down.

I would have thought it was time Chaco started moving North not falling, lots of speculation amd ALEA is a proven asset, the price should be 12p + not languishing @ 7.55p.

My level 2 trial finished on A.D.V.F.N anyone seen any other free trials, may as well take advantage if i can.

Stewart I think it's boredom setting in, some investors have no patience. It seems if they are not making 10% in 10 days they bail.

Anyone who has done their homework should know the story is v good with chaco. Admitedly it's frustrating when we don't hear news. But the few snippets we get from various people with contacts should reassure us all that things are progressing at a very satisfactory rate. Not wanting to sound like a broken record it's just a matter of sitting tight, ignoring the short term blips and waiting for all Chaco's efforts to come to fruition.