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.

Sharesure
The pipeline looks good-nice to see some news this week!

Bodeng, Er.. what pipeline was that?

wdbm joined wins on the bid.

L2 2 v 1

Sharesure
I meant there was a lot of news coming in the future!

That was very misleading, LOL.

It would be great if Chaco could move upward like VOG!

haha bodeng, wouldn't it just!

Not a single buy today so far - very frustrating - no news.

I guess no news is good news in some respects

Looking as though it's about to head higher

Reply from Martin Groak to email asking if any progress on Colombia-
Hi Geoff,

Can't really say anything right now, except that we're working on it

Regards

Martin

In the past this type of vague reply has resulted in news shortly afterwards!

The mere fact that they are working on it must be seen as positive news.

baza

Some chunky X and T trades gone through late in the day a close to the sell price. Can anyone make an educated guess as to what is happening here.

Does this look like good news or bad news ??

Baza

The good news is that if they were sells the shareprice wasn`t affected.

That X for 5.3m shares is neutral since it involves a transfer from a willing seller to a willing buyer. As for Martin Groak's comments I think all should draw comfort from the fact that if CHP hadn't got the other Colombian deals then an announcement to that effect would have been issued. The fact that it wasn't, and we are way past the legislative timescales, in my view means that CHP has been awarded the extra deals but needs to be sure that any partnering arrangements, which it would find essential for the bigger of the two deals (400m+ barrels?) to be brought into production, need to be put in place before any announcement is made.
As for Paraguay and the award of the third licence area abutting a large existing oilfield I suspect that is being progressed although on a slower timescale.

Sharesure
Thanks for your informative comments-news next week would be nice!

I like your analysis SS - and it seems logical and to make sense. My worry is that if you can draw that conclusion - why has no one else - and why therefore have we not seen a steady rise in anticipation !

Not doubting your conclusion - but just playing devols advocate

Baza

bodeng/Baza, I agree that it is strange that there is no rise in anticipation of news. I suspect that this mgt. team is still being viewed by many as having something to prove; I've made my mind up that they are to be relied upon and that they will err on the conservative side when quoting figures and timescales.
Obviously my hunch that there would be news on Thursday of this week went the way of many hunches; I just don't believe we are far away from hearing more. The late Trades today might have been significant unless that is in anticipation of weekend press comment.

Sharesure hi,you seem to be the mainman on this thread and i always appreciate your comments along with your obvious knowledge of chaco.One thing id`e like to know though is, why out of all the exciting oil and gas prospects on the markets at the moment do chaco stand out in your mind.They havn`t yet made a penny, they`ve no proven reserves at the wellhead and their past record was appaling.This in no way is having a go at anybody because i own half a million chp shares at the moment mainly bought on speculation and it`s only in the last 2 months that the sharechart has wobbled but id`e be interested in why you rate chp so highly. Keep up the good posts.

pisces

If you don't mind I will have a stab at that good question.


Colombia wants to increase its revenues by increasing hydrocarbon production. The Colombians have changed their approach. They now have a 'use it' or 'lose it' policy to those holding the rights to exploit oilfields.

Graeme Stevens is key.

He knows the people who make the decisions to award oilfields. He knows the oilfields of Colombia as well as anyone in the region. But more importantly he had the good sense to apply for these 'dormant' fields during the summer when the majors, who have the rights to explore the oilfields in question, were caught off guard.

The Colombians have worked with him before and know that they can do business together.

This is Chaco's way of building up reserves. It has already proved successful with Alea and the directors are confident that we will be successful in other applications.

At the moment this winning approach is not factored in to the share price. Once they have been successful in securing a second deal and then a third the market will begin to understand that Chaco is a very interesting story indeed.

It is believed that one of the next fields that chaco has applied for has more than 300 million barrels of oil. This too is not factored into the share price.

In my opinion chaco is going to be one of those companies, like Knutsford, that people in the business remember for a long time.

DYOR

Alfred

Pisces, I think Alfred has put the point about CHP very well. The CHP mgt (some ex GMS, but crucially some new like Graeme Stephens) realise that they have something to prove. The GMS history is just that, they were very badly treated by a bureaucracy in Sardinia and they are all too well aware that this time round they need to get in place enforceable agreements before they go public, hence the timelag in getting RNS's. As soon as a further RNS is issued on the next one or possibly two deals I'll do some figures to show why this will become a great stock. Just looking at Alea 1 (38.1m barrels) - that will be coming out of the ground by next March/April; Repsol is the major partner so CHP are well supported and the project is fully funded. That oil at the wellhead is worth at least $35/barrel of which CHP has 25%. That alone will transform the asset value but I believe there are some much larger resources yet to be announced between now and next March.