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.

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.)

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.)

SS - pardin my niaivity - when bodeng says that CDS are drilling today in Paraguay - does that mean that we might get a reaction today - or does it mean that having started - it will take x days, after which we might get a reaction. I assume the latter - but thought I would ask the noddy question?

Baza

.

CDS SPUDS FIRST WELL IN PARAGUAY


LONDON, England: November 29, 2005 - CDS Oil & Gas Group plc ("CDS"), the
AIM-listed oil explorer (CDS.L), is pleased to report that it has spudded its
first well (CDS-GM-05-5001) in the Chaco region of Paraguay.

The well is located 200m southeast of the Independencia 1 well drilled in 1993
on the Gabino Mendoza block which was in turn a re-entry of the Mendoza 1-R well
drilled by Pure Oil in 1959. The well was spudded on November 25, 2005 and CDS
expects to reach a planned depth of around 1,600 metres in about 20 days of
drilling. The primary objective is an oil-bearing zone between 1,500 metres and
1,600 metres, identified by CDS through its interpretation of seismic reports
and the logs of previous drilling operations.

A production test on the Independencia 1 well was performed by CDS in March 2004
and flowed natural gas at rates up to 960 thousand cubic feet per day ("mcf/d")
through a 22/64" choke from a Carboniferous sand (the "Independencia Pay") at
600 m depth. The gas was dry with 94% methane and no sulphur.

The new well will evaluate Carboniferous and Devonian sediments to the initial
planned depth of 1,600 metres. Below this level there may be a potentially
large gas play which CDS may seek to drill at a later date after reviewing the
results from this first well.

SS - I guess CC has answered my question above

Bhunt, think so! Surprised that news has come in so quickly. Graeme Stevens (at the AGM) reckoned that the area is very promising from an oil exploration viewpoint. Looks like he is going to prove his worth to Chaco.

I agree Sharesure, Graeme Stevens' expertise is a real asset to the company.