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.

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.

Sharesure,Alfred, cheers.

stockdog

re- answer to the old post at the bottom............

I'm not saying that you 'are' stupid
I'm not saying that you 'are not' stupid

but if you can not see if the cup is half full or half empty
then you most likely have a stupid "dog" problem

stockdog - 11 Nov 2005 16:02 - 887 of 936
Master RSI, just one question - is that cup half full or half empty?
sd

               

RNS Number:4030U
Chaco Resources PLC
21 November 2005


CHACO RESOURCES PLC

21 November 2005



Chaco Joint Venture Awarded Puerto Lopez Oeste Block in Colombia


- Puerto Lopez Oeste Exploration and Production Contract granted in
Colombia


- Chaco to hold 54% equity share in joint venture.


- Chaco to fund 100% of seismic programme and first well


- $1m of seismic to seek field : potential "look-alike" of field in
adjacent block

The Directors of Chaco Resources plc ("Chaco" or "the Company") are pleased to
announce that a joint venture group, in which Chaco will hold a majority equity
interest of 54%, has been awarded an Exploration and Production Contract over
the Puerto Lopez Oeste Block in the Llanos Basin of Colombia ("the Contract").
The Contract will be formally executed with the Colombian Government in the next
few weeks.

The block covers an area of 35,700 hectares and lies immediately north of, and
on trend with, the Valdivia Oil Field, which is currently producing in excess of
3,000 barrels of oil per day. The approved work programme for the block over the
next 12 months is to re-process and re-interpret the existing seismic lines in
the block as well as to acquire 100 km of new seismic data. This seismic
coverage is designed to locate a Valdivia Field look-alike which, if present,
would be drilled in the second year.

The partners in the joint venture are Expet S.A. and Consultoria Colombiana S.A.
Chaco will fund 100% of the seismic programme and the first exploration well in
order to retain a 54% equity interest. The cost of the seismic programme is
estimated at approximately US$1million.

Chairman Jon Pither commented "We are very pleased that our group has been
awarded this block which, although an exploration play, has the potential of
locating one or more Valdivia type fields on the same productive trend. This
award, coming so soon after the announcement of the Chaco farm-in to the Alea
Field Development Project, further cements our position as a serious player in
the exploration for, and development of, new fields in the exciting sub-Andean
basins of Colombia."

Background

Chaco Resources Plc is the successor company to Gold Mines of Sardinia Plc. In
2004, the Company changed its name and its strategy to one of pursuing
hydrocarbon exploration and development opportunities in South America, focusing
initially on Paraguay. Two local companies, Amerisur SA and Bohemia SA, were
acquired for shares whereby Chaco obtained preliminary rights to a total of
approximately 4.7 million hectares held under three applications. Two of the
three applications covering approximately 2.3 million hectares were
subsequently granted as Exploration and Production concessions and the third is
still in process. For various reasons, the country has seen comparatively little
exploration activity to date, but it is of interest due to commercial extraction
of hydrocarbons having been made in adjoining countries from hydrocarbon basins
which extend into Paraguay. All the historical seismic data relative to the
applications was purchased at the time of the acquisitions and is currently
being re-processed using modern computers and analytical programs. On
completion of this first phase, the Company plans to review its strategic
options in terms of doing further seismic work and/or initiating a drilling
program. The Company's stated intention is to bring in farm-in partners for
this second phase.

Chaco was subsequently introduced to opportunities in Colombia, where a
fundamental change in the fiscal laws and an overhaul of the state's management
of hydrocarbon exploration and production permits created a very favourable
investment environment. Chaco teamed up with strategic joint-venture partners
who have many years of experience operating in Colombia and through whom it has
been seeking to participate in exploration and production (E&P) concessions. On
3 October 2005, the Company announced a joint venture with Repsol YPF SA to
exploit the Alea field in the Putumayo (see website for details).

The Puerto Lopez Oeste block was the second of three applications submitted. The
third is highly competitive and the Company is keeping details confidential at
this point. Under current legislation, where an entity holds a Technical
Evaluation Area permit ("TEA"), in the event that another party submits a
development budget for all or part of that area, the TEA holder must match the
budget within 30 days or lose its rights over the block(s) in question. If the
TEA holder does not contest the third party's application, the hydrocarbons
ministry (ANH) will consider whether the third party meets its criteria for a
suitable applicant. The ANH has up to 60 days to deliver its verdict. It is in
this context that the Company has been submitting development budgets for
blocks in existing TEA's through its partners.

The Alea Block development budget was matched by Repsol, but they agreed to the
Company's farm-in proposal. In contrast, the Company's Puerto Lopez Oeste
application was not contested by the TEA-holder.


Website update

The Company's website is being improved and investors are invited to view the
changes in the Investor Information section which are scheduled to be completed
during this week, including dynamic share price feeds. The Colombia slide
presentation made by Graeme Stephens at the last AGM is also being updated to
reflect the latest financial estimates (based on a 54% equity holding) of the
return from a theoretical 10 million barrel field similar to Valdivia. When the
update has been completed, the presentation will be re-titled "Colombia
Presentation (updated)".

Chaco Resources Plc (AIM Trading Symbol: CHP) has offices in the UK, Western
Australia and Paraguay and intends to open an office in Colombia shortly

Enquiries:

Martin Groak : 07949 209 301

Website: www.chacoplc.com

Absolutely no reaction in the market - why ???

Baza

Perhaps everyone is asleep on Monday morning!

Tend to agree, hasn't been seen - must be the time of the release!

No - the MM's would have marked it up as soon as it ht the sscreens if it was really good news - which I thought it was. something is not quite right?

no reaction possibly because it is an exploration play - and will take the 1st year to redo and get new, seismic data for locating drill targets....which would then (i assume) be drilled in 2nd year...........effectively meaning there is a decent time lag in this project, as opposed to the Alea field project.

.....overall though, market does seem a bit quiet this morning.