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.

What is going on-we should be going up with the new application confirmed by K J Kelly!

Not sure I understand this investing lark - shouldn't they go up on good news and with the shares so undervalued.

Bewildered Baza

Price has gone down because people have been dumping in the last few days,could test 6p again, when it does im`e back in.

pisces,

People have not been "dumping", there have been some sells due to the recent RNS not being as bullish as people had thought it would be. I thought it read well and there is plenty to come, its frustrating but patience is required, read the background , look at the potential.

Did you not see MPH's excellent analysis of the companies assets, asset value of 20p + per share, as more news comes through Alea and the second application will push the price up, the SP refects none of this yet and do not forget Paraguay.

How many shares in circulation - and only 1m traded today = <90k - hardly dumping!!

bhunt,

300k shares traded without that rollover!

cc.

Apologies stewart and bhunt,i need to choose my vocabulary a little better,i am still as excited as you guys about chaco but when theirs money to be banked id`e be stupid not to take it.The fact is i sold at 7.6p because of a lack of response to the news and at the present time my actions seem to be totally justified,all i need to decide now is where the next support price will be.Going by recent charts this should be between 6-7p, maybe you guys could add your valued opinions.

One thing i have noticed as im`e sure many of you have is the spread can be as little as one tenth of a penny with this share, at the moment it`s four tenths although i am sure in the next few day`s this will narrow down.Four tenth`s is a lot of money on a 7p share so i will wait for the correct entry point.

I am no expert - but I have this as an investment share - so am not trading it.

The movement in the short term is of no real consequence - so long as it moves north sooner rather than later - and thats just because I like to see the sp moving in the right direction.

baza

Very quiet today!

Just having a look at the charts going back to 9th september and the overall trend is steadily down hitting 7p today from a high of 8.8p.From 31st october we have a series of lower highs and lower lows despite the recent announcment,also steadily falling volumes,im`e not slagging the stock as im`e keen to see the price go up as everyone else is but from a charting point of view we could see 6p soon without any news.There is very strong support at that price and that would make another good entry point.I know a lot of you are in for the long term ,i just thought id`e give a short term perspective for any potential buyers myself included .

Pisces, you said the other day that you had sold your stake in CHP. Most of us who are close to this stock consider the current sp to be at a considerable discount to where it would be allthings being equal. There is talk that Evolution has shorted it which, combined with others detracting from the recent RNS' is having a dampening effect. After Regal Petroleum, all oil explorers are being ultra-cautious in predicting reserves. On that alone expect the Alea 1 deal to be upgraded to closer to 70m barrels in the near future. You might want to dismiss my comment as ramping; it is not, but at the present time companies like CHP are constrained in what they can say and in how they counter mis-information from those with a vested interest in depressing the sp. As I intend holding for the 1st year to gain CGT savings the current lack of share price action is merely disappointing.

Looking stronger, lets hope for a nice lift, now @ 7.25, I'll keep you posted anything significant

Level 2 3 v 1

Another point to note whilst the share price has dropped slightly of late it has been on smaller volume. This is also key, bit of profit taking and an opportunity to mark it down. In for the longer term.

Please see page 43 in Shares mag today under Trading 4 Pargs in total saying that
the management are being ecconmical with the truth & possibley overstating the Co. reserves as like other lge Co did earlier this yr.

PARKIN,

Can you expand further on that statement, I find that an apalling comment to come out with, I intend sending it to Martin Groak Finance Director of Chaco for his reaction, and I expect his first reaction to be a phone call to their lawyers.

Those comments are accusing the directors of fraud and I for one will defend their rights and ask them to refute them totally, what reasons have you or shares Mag got to state that.

Unless you are trying to de-stabalise matters, if you are I will take the issue further.

Sharesure and others, any comments

Stewart - I have just looked up the article - and have reproduced it in full below - I do not think Parkin has read the article properly and it is he who has misinterpreted its content (deliberately or not) - not Shares Mag .

The problem is I think that this page relates to gossip on the BB's and Shares arguement will be that it is simply relaying gossip to its readers

"Chaco reserved about its reserves.
Judging by the whispers in cyberspace, traders and investors believe the management of CHP is being economical with the truth. The key difference this time is that they believe CHP's management is not being forthcoming with good news.

On Monday, oil explorer CHP revealed that it is the majority shareholder in a company that has won an oil exploration and production contract over the Peuto Lopez Oeste block in the Llanos basin of Colombia. The block cover an area of 35,700 hectares and is north of the Valdivia Oil field, which currently produces 3,000 barrels of oil per day. The minority shareholders are Expet and the Colombian Government.

One message on MAM's bulletin board reads "I think that the way the RNS is worded is probably too conservative when compared with the reality of what they now have. Expet as a partner is an important step as they wouldn't get involved with any company that they did not regard as a competent player. After the problems of overstated reserves from other companies, everyone now seems to be very worried not to get into the same problem."

Traders should probably err on the side of caution when dealing with resources companies and their estimates. At the same time, they should be wary of the involvement of Expet, of which little information is available"

Baza

thanks for showing the article baza, well done shareshure- it's quoting you from 21.11.05
as with most others if you can stay in for the long run, the story looks promising
though a stumbling block not yet mentioned is the unstable political climate in Columbia, and I just wonder whether that's the reason Emerald isn't flying on their 4000bpdat the well head

Shares Mag. ought to stick with its own editorial staff giving their opinions. 2 weeks ago they peddled some 'shorters' deramp; now they seem to be trying to make amends. Everyone involved in mining knows the damage that was done by Regal Petroleum's problems on reserves so inevitably conservatism is the current order.
ddoc2 well spotted! I am still trying to find out more about Expet, but I suspect that it is very well connected.
My earlier comment on Alea1 possibly having reserves considerably in excess (circa 70m) of the 38.1m announced so far on Alea1 came from a continental mining contact who so far has correctly called events even though the projected timings have been usually too optimistic. We shall see if the latest is concistent.

ps for ddoc2 Talking to those working in Colombia, they say that although there have in the past been skirmishes they all feel safe enough for the timebeing for that not to cause them any worries. Obviously things can change but then they can anywhere, even in Texas. They have also pointed out that they would rather be there than say Saudi or Kuwait, let alone Iraq.