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.

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.

pisces - another way of looking at the chart currently is as a classic bullish continuation flag which typically points downwards on low volume prior to resuming the strong upward trend of mid-late October. The flagpole is 8.4 (ignoring intraday spike at the peak) less 6.2 where the strong advance started = 2.2. When the expected break out from the flag formation occurs we should expect to see a further strong advance to 2.2 above, say, 7-7.5 = about 9.5 next peak.

Beauty is in the eye of the beholder (DYOB!)

see Chart School - excellent little free site.
http://stockcharts.com/education/ChartAnalysis/flagPennant.html

sd

A better day today perhaps!

I think this will slowly drift until we get news

My bet is mid next week as US closed much of next couple of days - and I guess that is important for them

Sharesure
Any thoughts on why we are stuck on 7p when the true value is much higher? Why do we need more news to get the SP to move up. Today's volume was very low!

bodeng hi,hope you don`t mind my opinion as hopefully i can give an outside perspective being a non holder at the moment, the reason being i am hoping to buy back at a lower price.The potential of chaco is enormous but at the present time that`s all it is, and like many shares in their infant stages investors are very wary. People can go on about what a shareprice should be based on that potential, and that is in no way being disrepectful to the many knowledgable investors on this board, but don`t forget this is still a loss making company.The shareprice has already trebled in the last year and let`s face it most investors probably won`t have a three bagger in their lifetimes. As long as things progress as they have in the past few months there should only be good news ahead and believe me i am as excited as anybody about chaco`s prospects. I still think the price will drop to 6p without news but bearing in mind theirs no oil in barrels yet i think that`s a fair price.Sorry if iv`e offended anyone.

pisces - 'most investors won't have a three bagger in a lifetime' - If this is true, which I doubt, it is because investors over-manage their porfolio and do not let their winners run.

I would say that most investors have had three baggers, but sell before they have flourished into ten or twenty baggers.

alfred

I had an 8 bagger with Southern African Resources now African Platinum but it didn't all happen in one go!

Good start today with the 500,000 purchase!

CDS oil and gas are drilling today in Paraguay-this should help Chaco!

The drilling - or the results ?

bhunt, CDS is being watched closely by brokers since their activity in Paraguay - if successful - is bound to bring attention to the huge concessions CHP has in that country and which are ignored in the current sp along with much of their potential in Colombia. The third Colombian deal should apparently be known in the run up to Xmas. (Last estimate I heard for this prospect was 400m barrels of light sweet crude of which CHP might get 25% if they have to share or more if they get lucky on the allocation.)