Re:Re CHP. Deep20 Nov 2006 13:36
Venezuela's moves to nationalise its oil industry, under the leadership of Hugo Chavez, its president, have diverted more of the industry's attention to other parts of South America.
Chaco Resources has oil exploration acreage in Paraguay and Colombia, one of the most business-friendly countries in the region. In light of the political pressure elsewhere, some of the bigger oil groups, such as Brazil's Petrobras, are paying more attention to the areas where Chaco operates.
Last week the company received approval from the Colombian government to extend its Puerto Lopez Oeste block in the Llanos basin, and further positive news is expected at this week's annual general meeting.
The chairman, Jon Pither, recently increased his stake to 0.22 per cent, spending £200,000 on shares priced at 11.93p. The finance director, Nicola Brookes, bought 50,000 shares at the same time.
We first tipped Chaco (14p) in September last year at 2p, since when the shares have gained almost 600 per cent. There is a feeling that the shares could spark into life. Speculative buy.