Paraguay explorer CDS Oil & Gas Holdings said Monday that two of its — shareholdes Feltown Assets Inc and Werton Finance — have bought up equity left by Petro Saudi Ltd., the company that was ready to bankroll an exploration in the fledgling oil province.

Feltown and Werton now own 35 percent and 22 percent in a company focused on the nearshore Chaco Basin, where the notion of tax dollars and investment brought visits from a an appriative minister of public works, a vice minister of mines and Governor of the Province of Boqueron.

They visited the Emilia site, where drilling was to have started in fourth-quarter 2008. At stake is the Chaco Basin’s three blocks of shale and sandstone between the Andes Mountains and Brazil to the east.

But before drilling comes finance, and the new investors will also seek to find CDS the $2.25 in working capital commitments left by Petro Saudi. Feltown and Werton are understood to be negotiating for the working capital and finding partners .

Some 23 of 27 wells drilled in Chaco since World War II have shown oil, gas or both.

Tags: CDS Oil & Gas Holdings, Petro Saudi Ltd.