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.

Bodeng, No; I hope that they will have the option to delay a little until the mkt. settles. With WDBM still soaking up shares the current weakness is only short term in my view.

.

Christ has anyone read Advfn its turned into a warzone!!

SS,

Any updates please mate, we need your info just as much in the worrying times as in the good,

cc

CC, Appreciate your concern. When a bunch of shorters get their teeth into a stock there is not a lot others can do other than use it as an opportunity to increase their own stake, assuming available cash. If anything the AGM helped make me more sure that this mgt. team will turn CHP into a very valuable company in quite a short time - 6 months or so. There will be several points at which CHP will be able to report further progress over the next few weeks eg deals 2 & 3 in Colombia. If either, but particularly deal 3, is successful the effect on the sp should be stunning. Apart from which, I really liked what they said about their Paraguayan blocks (1 & 2) which they will be progressing simultaneously with Colombia. If they also get block 3 in Paraguay in the next few weeks so much the better.
Plenty to go for, (my target is 90p-100p in 6-8 months) and in my view, a share where you just have to sit back and let the events unfold. In the meantime we just have to put with shorters having their fun, but in my view it won't last that long.

ss,

Very much appreciated, rough with the smooth and all that eh?
I have made my bed now and I will lie in it for a year or so and if your predictions come true I will look back and laugh about this week.
I'm sure that many who have jumped ship in the last couple of days will be watching and jump back in just as quick when we get some more good news.

cc

1:5 @ 6.6 : 7 and 50kv250k with WDBM on the high OFFER

WDBM high bid now @ 6.6

Yep - it has moved around , now
4:2 : 6.6 : 7 and 200k v 100k with WDBM on high bid

Sharesure
I hope we do get to a pound but do you have a figure in mind if all the deals do not come through as a MORE CONSERVATIVE sp.

MPH, you get my email

Bodeng, If you just take deal 1, the value of 20m - 70m barrels of oil at initially $5/b in the ground, and then 6 months down the line when it can be classified as at the wellhead and therefore worth at least $35/b, allow for the fact that CHP get 25% of these figures, then divide by the number of shares in issue (at the moment , until the placing we don't know how many new ones they need to issue) and you'll get the range. Don't forget the potential of the Paraguay blocks too. As and when they announce new finds and new reserves on existing blocks then it will be possible to keep a running tally. At this stage all we have for certain is deal 1 but when it gets to the wellhead stage you can see that the sp has a lot of room to be many times the current level. But I would have thought it far too pessimistic to assume they also don't add new areas and new finds meanwhile.

Thanks Sharesure

Looks like CHP has settled down and next week should start to regain the ground it has lost. If those who were shorting it stopped to do some simple calculations just based on the first deal in Colombia they might come to the conclusion that this stock is destined to rise significantly on just that deal alone. As for CHP's other prospects, that just piles on the assets if they are successful in being awarded them. I reckon that they are confident that things will go their way.

Yes thanks Stewart I have sent a reply.

WDBM has now started to move himself to sole high bid.

MPH, how do you access emails on here, are they routed to my home email,?

MPH, that's encouraging as they are sure to get advance news because of their position as major holders.

I see they dropped the offer to 6.7, it would be nice to see some buys coming in at the reduced offer price, any thoughts

Stew,

I think after the last few days they have shed loads of shares at their disposal,
try and get rid of a few 'cheap ' ones to balance the books a little maybes.

cc.

SS,

been away for a few days and couldn't get online. So I've missed all the excitement - but my CHP holding has suffered along with everyone else's.

I wanted to say thanks for your hard work and for sharing the AGM results with us. It's good to have had someone there to get the facts rather than rumours from rampers or de-rampers.

I still believe (and made no secret of it) that irresponsible speculation caused the CHP SP to get out of hand. I further believe that the company itself, through its documents and statements, made the situation worse. So the lack of tangible and confirmed good news in the AGM RNS made the drop in SP inevitable [and of course the general correction and specific oil pullback made it worse].

Before anyone goes off the deep end, I am not a de-ramper and can back up everything I've just written above. Nor am I using 20/20 hindsight as I can demonstrate having publicly documented these thoughts before the AGM.

[Challenge "my facts" and let's have a rational debate if you don't agree. I am simply putting an alternative view forward that I believe to be true. People on this BB can assess my opinion or ignore it as they see fit.]

Now having said all that, I still have a holding in CHP. I believe the SP is now fundamentally undervalued. In fact I think the current SP doesn't even equate to the NAV. I think the key problem is going to be the shares lack of credibility given that it didn't fulfil the (albeit inflated) previous expectations.

What I'd like to see now is a series of positive RNS, providing factual information on achievements that we know could be in the pipeline:-

Paraguay

1. that the e&p rights to the 3rd area in Paraguay (the one owned by Bohemia SA) have been passed to Chaco

2. about the results of the re-analyses of the seismics for all 3 Paraguayan territories

3. assuming good data analysis results, CHP will farm-in the actual drilling and exploitation of the target fields in Paraguay and retain a net profit interest


Colombia

4. on the placement volume and price for the up to 125M shares that the Board have been authorised to issue. (Since this placement represents a near 30% dilution, it will automatically imply a 25% reduction in the SP.)

5. on progress of the Putumayo region deal with Repsol including the re-drilling of the well; hook-up to the pipeline; flow rates; extent of the oil field; projected profitability of CHPs 25% share in this deal. We should also get clarification/confirmation that the $7.5M is the full extent of CHP commitment including any necessary infrastructure work (e.g. road repairs/upgrades and pipeline laying)

6. on the e&p applications in the Llanos region in which (if they are successful), CHP will have a 55% share

Each of the coming news items, if positive, will increase the potential NAV of the company. However, as we've known from the beginning CHP is a speculative investment. Anyone who doesnt believe there is good news coming that will increase the value of the company, shouldnt be invested in the first place.

My fag-packet calcs suggest we are now at post-placement SP levels rather than pre-placement. When tempers are calmer and this is clearly understood, we may get a more realistic upward movement as the good news is released.

I have of course only explained my thinking and why I'm holding my current position. No advice intended.

WDIK, PDYOR.

camlad