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UPDATED 22/1/07

Valuation of Chaco Resources : 'Rule of Thumb' based on 550m shares and using 10% DCF on oil at $60/barrel is 1p on the sp for every 1m barrels (CHP's share) that is proved. Until oil reserves are proven the 1p/1m barrels will be discounted by the market.

Chaco Resources now has three exploration blocks in Colombia and three areas in Paraguay. The next year should see a steady news flow as it establishes the companys transformation from being an exploration company only to also becoming a significant oil production company. Set out below are some of the milestones which should produce announcements and have a positive effect on the share price. All reserves are quoted in recoverable oil assets.



Alea, Colombia :

25% interest in a field currently assessed at holding 38.1m barrels of light sweet crude oil. Drilling of the field by the operating partner, Ecopetrol, was programmed for 2006 to provide early cash flow, but a shortage of drilling rigs, then the rainy season and increased environmental requirements have caused a re-think and it is now expected that this block will be drilled in first half 2007.The proposal to drill a step out well as part of that drilling programme will also provide the opportunity to establish if the estimate of recoverable oil should be increased. (Some estimates suggest the field contains as much as 70m barrels.)

RNS : Updated w/c 30/4//07. Drilling contract should be imminent but actual drilling unlikely to take place second half 2007.



Puerto Lopez, Colombia :

54% Interest in a field containing light sweet crude oil.On 3.10.06 CHP announced that the original TEA area had been extended by the ANH to include further territory which it is expected will greatly increase the potential to find and exploit a structure which may contain as much oil as there is believed to be in Primavera, where Hardman and Co estimate that there is a potential value of 120p per CHP share.

RNS :Updated 22/1/07. Further seismic now obtained and decision not to proceed made because closures too small to be economic and drilling funds earmarked for this project now being retained for use on a more prospective block yet to be announced



Primavera west, Colombia :

55% interest. Two shallow drills in April turned out to be dry. Areas adjacent to this block contain oil (Cana Limon, also in the Mirador basin, the largest oilfield so far, 1.8b barrels) Chaco believe that the area in their block contains the thicker end of a wedge shaped oil-bearing sandstone structure; the area to the east in the neighbouring block has been estimated as containing 400m barrels and the El Miedo oilfield, 8 kms.away has 325m barrels. ANH Contract signed w/c 8/5/06 (1 week sooner than forecast). GED are drilling their neighbouring block in February 2007; two of their targets may contain oil deriving from Chaco's area so some earlier cash flow may result.

RNS : The drilling programme has now been completed but the company has yet to say whether the block will be explored further or abandonned.

New block announced in April known as Tigra in the Magdelana Basin. CHP has a 48.75% interest. Believed to be very promising but company is doing 3-d seismic over the next 18 months with drilling projected in the following 16 months. (Timescales seem to be set to allow a lot of room for delays or speeding up if progress is easier than anticipated)



Curupayty Block, Paraguay :

1.39m hectares in north, close to Bolivia. Two wells previously drilled and both showed oil.

RNS : Expect partnership with larger producer.



San Pedro Block, Paraguay :

1m hectares in south-east. Previous drilling showed oil.

RNS : Expect partnership with larger producer.



Parana Basin, Paraguay :

Canindeyu block covering 1,789,000 hectares. Bordering Brazil. Oil field on Brazilian side already drilled. Chaco also expect to find oil and, at a deeper level, considerable quantities of gas. Chaco has obtained valuable historic seismic for re-evaluation.

RNS : Presidential Decree received 2/11/06.. Petrobras has announced its intention to increase substantially its effort to exploit Paraguay's hydrocarbons and has announced a farm-in on CDS's adjacent block. Possibility that they or another major will do likewise with CHP



Corporate Activity :

CHP obtained an independent evaluation of their exploration assets by Hardman and Co., during July 2006.This is updated monthly. As Chaco Resources line up their assets ready for production they may attract a bid. There are also other actions that the mgt. could take to increase the Chaco's asset share subject to negotiation since the position of the Colombian state oil company, Ecopetrol, is believed to be under review. Other actions could be taken which would have the attraction in bringing more resources to bear on a quicker timeframe plus help streamline the management of their assets. De-merging the Colombian and Paraguayan assets at an appropriate time might hold out some advantages to shareholders at some stage.
Last Placing announced at 15.1p per share on 18/5/06.
Chairman and FD bought shares 8/06 and the Chairman recently exercised his option on further shares which would suggest that he regards the share price to be going north from here on.
Updated 22/1/07.




Here are some dates for your diary courtesy of KJKelly, who posts on ADVFN

1. Curupayty - complete reprocessing of seismic by end July 06
2. Curupayty - complete interpretation of seismic by end August 06
3. Curupayty - decide whether to proceed to drilling or proceed with a farmout campaign - end September 06
4. Platanillo - commence re-entry of Alea 1 early in 1st quarter 2007
5. Primavera - two structural targets will be selected from 10 potential targets for drilling commencing Feb. 2007.
6.Hardman updates should now happen monthly.

Not directly relevant - I know - but these guys are I think on our borders - and they seem confident enough to invest in 5 rigs

Global Energy Development PLC
22 August 2006



Immediate Release 22 August 2006


GLOBAL ENERGY DEVELOPMENT PLC

RIG CONTRACT SIGNED FOR FIVE WELL DRILLING PROGRAMME


Global Energy Development PLC ('Global' or the 'Company'), the Latin America
focused petroleum exploration and production company (LSE-AIM: 'GED'), is
pleased to announce that it has signed a rig contract with Zigma Colombia
Petroleum Services S.A. ('Zigma') for the drilling of five delineation wells in
the Primavera field within the Colombian Luna Llena Concession contract area.

The five Primavera wells are proposed to be drilled or spudded prior to the year
end to a depth of approximately 3,000 feet each with estimated drilling and
completion time per well totalling only fifteen days. Each well is expected to
cost approximately $1.1 million through to completion and installation of
surface pumps and will be funded from cash flow from current production and cash
available.

Rig mobilization to the Primavera field is expected to commence in November 2006
with timing dependent on weather conditions in the Llanos Basin of far eastern
Colombia where the Luna Llena contract is located. The rig to be used is now
reserved for Global for the necessary time period and will undergo maintenance
prior to mobilization.

The Company currently expects incremental contribution to production from the
Primavera wells by the end of 2006 with all five wells, if successful, being
placed on long-term production during the first quarter of 2007.

The Primavera field has substantial well-tests and subsurface geologic control
that was acquired by four international oil companies from the 1980s into the
early 1990s and the Company is currently reprocessing existing seismic acquired
during that period to determine the exact drilling locations of the five wells.
If the initial five wells prove successful the Company intends to acquire new
seismic data over the Primavera field in order to plan more effectively the
longer-term development drilling programme for the field.

Global owns 100% of the Luna Llena contract subject only to an initial 8%
royalty, with the size of the royalty to be determined by future production
levels.

Commenting on the rig contract and potential of the Primavera field, Stephen
Voss, Managing Director of Global, said:

'The Primavera wells represent quick and cheap drilling and have the potential
to materially enhance our existing production within a short time-scale.
Importantly, the signing of the rig contract provides us with greater comfort on
our proposed drilling schedule and also increases the opportunity to book
additional reserves at the year end.

'The Primavera field could in the management's opinion be analogous to the
Rubiales field which is located in a similar geologic position near the margin
of the Llanos basin and is considered to be one of the largest producing fields
in Eastern Colombia.'

bhunt, GED's programme may be more relevant than you are giving it credit for but it depends upon exactly where in their block they drill. If they find oil whih comes from a reserve that straddles the border between their block and that of Chaco, as I understand it there will be a production sharing assumption between the two. It may be a little while before it becomes evident where the nearest drilling to CHP's boundary will take place.

Iam suffering withdrawal symptons already, its 12 noon and no Chaco thread.

no because not a great deal is happening at present. I cant see this price holding up much longer. let alone people are predicting 20p?

It was always known that the drilling programme would take some time, so nothing has changed. If you don't like waiting then sell up and go somewhere else.

September should see this share start to motor again.

There is a lot of news in the offing - drilling schedules and additional blocks. The sp at this level is way adrift from other oil explorers so there is plenty of scope for a strengthening over the next week or 10 days. The summer doldrum period is about to end in my view.

sharesure,,i think its time chp did the decent thing and gave us a drilling date for alea,the balls in their court.

Amities BHunt/ ,,GDE are spudding 5 wells with one rig and not employing 5 rigs to spud 5 wells as you say . That would be absurd . .....High rotary count holding back many oil minions. Strongly agree with trotting .We were told that Alea was a summer programme . Yet nothing. They have only juste acquired a rig for sometime in Q4. .All needs clarifying via statement or the s/p will start to reflect such uncertainty ..,,,..@J

TFC - my mistake - 1 rig, 5 wells. Thanks for clarification

Trotting, I think that we'll get a drilling date plus other news very shortly.

trotting and tfc totally agree, it's been pretty quiet and any news would be welcome

sharesure

looks like someone else agrees with you, two late 1m buys showing

Well that week's hols went quick and I see not a lot has changed here, however nice to see us ticking higher this morning on fair volume for this time. The way I see it is that business starts again for real today (next week for some!) across all markets, volume returns and we hopefully start to see a string of news here.

A good start to the day.

Decent volumes today, where has everyone gone ? The 500000 buy at 1pm is showing as a sell, why do they do that.Hopefully news out soon.

still here, pisces. glad to see it creeping back up. hope it continues. every day that passes means the good news is getting closer.

Still just waiting for news or something to comment on!

pisces, still here waiting impatiently!! Wondering if they have a rig, hoping they drill it in the right direction, if it takes much longer might volunteer my services. Hope it does a goo..... :-)

One thing I don't get, if a rig is on its way/already on site as has been suggested for some time on the other thread by some well followed posters, why wouldn't Chaco just say so?

I remember in GFM last year it was even announced when equipment arrived at the dock.

Either Chaco's pr is poor or one or two posters have been exagerating slightly.