______

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.

Morning all - am looking forward to news this week - hopefully

I'll drink to that - of course, coffee only at this time of day.

About time we got some news!

Maybee on its way now as buyers coming back

level 2 ALL BLUE

I need a good night out on the town-come on CHP-help me pay for that plastic surgery :(

Paraguay awarded!



RNS Number:4170L
Chaco Resources PLC
02 November 2006

AIM: CHP



2 November 2006



CHACO RESOURCES PLC
("Chaco" or"'the Company")



THIRD AREA in PARAGUAY (CANINDEYU) AWARDED


Chaco Resources Plc (AIM : CHP), the oil and gas explorer and developer focused
in South America, announces that its subsidiary, Bohemia S.A.("Bohemia"), has
received approval of its hydrocarbons application. The Paraguayan Government
has approved the Company's application for an exploration block over an area of
1,798,000 hectares in the Parana basin in the south east of Paraguay, known as
the Canindeyu block, and issued an Evaluation (Prospecting) permit for one year.


The approval states that Bohemia's application meets current legal and economic
requirements and that the Government Executive has adjudged them to be in order.


The Evaluation permit granted gives the company the right to initiate the
evaluation of the area for a period of one year. This work will comprise the
gathering, and reprocessing of the historical data related to the block and the
environmental licensing required for field work, after which the Company will
enter the exploration period that covers the following four years.


Further to the application the process for the concession of the Exploration and
Production contract ("E&P") has been approved. According to the Paraguayan
Hydrocarbons law, the E&P contract shall be submitted for ratification to the
Paraguayan Congress once executed by the Government Executive and Bohemia S.A.


Once the E&P contract is executed, the Company will allocate approximately 0.9
million ordinary shares to the vendors of Bohemia, in accordance with the Share
Sale Agreement dated 27 September 2004. A further 8.2 million shares will be
allocated once the Congressional ratification takes place. It is hoped that the
entire process with respect to this block will be completed before the end of
the second quarter of 2007.


A map of the block can be found on page 16 of the Company's Annual Report &
Accounts for the year ended 31 March 2006 and in the Company's presentation
given at the Annual General Meeting held on 10 October 2006. Both the Annual
Report and presentation, together with further details of the Company and its
projects, are available on the Company's website, www.chacoplc.com.


Technical Director, Graeme Stephens, said today: "It is exciting finally to
acquire this block in an atmosphere of increasing industry interest in
hydrocarbon exploration in Paraguay. The block sits adjacent to the gas
productive Brazilian side of the Parana Basin and contains the same
stratigraphy. We look forward to evaluating this very large area which, at 4.5
million acres, covers an area equivalent to over 200 average North Sea Blocks".



Competent person: Technical information in this announcement has been supplied
or verified by Graeme Stephens, the Company's Technical Director. Mr Stephens
is a qualified geologist and has been a member of the American Association of
Petroleum Geologists since 1970.


For further information contact:

Nicola Brookes, Finance Director
Chaco Resources plc
Tel: 01494 431195

Marc Young Simon Robinson / Ana Ribeiro
Daniel Stewart & Company plc Parkgreen Communications
Tel No: 0207 776 6550 Tel: 020 7493 3713

Now if Chaco performs to the norm - the sp will drop !!!!

Good to see they have this one under their belt and exploration process can begin. All good for the gradual changing of this company.

Thats a massive area they've secured.

We look forward to evaluating this very large area which, at 4.5 million acres, covers an area equivalent to over 200 average North Sea Blocks

Super news. Another great asset.

This will probably represent CHP's greatest asset in the future; not bad when you consider the potential of the Colombian blocks. At some stage it must be virtually certain that CHP will JV these Paraguayan areas with a major. Should justify splittin the company into two - one for Paraguay and the other for Colombia.

Sharesure

You've been quiet for a while. Anything else brewing for CHP?

bwd .... it's only an asset once it is proven that there is plenty of recoverable oil there .... until that time, like the rest of CHP, it is all hypothetical value ...... no rush to buy though i am happy to sit on my modest holding for the very long time that is likely to be needed until something of quantifiable worth is hopefully discovered.

blackdown, Haven't been quiet for any reason other than deciding to let CHP unfold their news. Today's news is only the start of what should come this month:
- drilling dates for PLO
-drilling dates for Primovera
-drilling dates on Alea (Ecopetrel's responsibility, so might be slower progress?)
-GED finding that 2 of their 5 Primovera drills hit oil in structures which span their boundary with CHP's block giving CHP immediate proven reserves.
-Possible JV on Canindeyu, although possibly too soon during November.
-I would still expect some Corporate changes like a new Nomad, new Broker and maybe a strengthening of the mgt. team in South America to make the mgt. of the company easier than has been possible with so much of the executive team in Perth, but the assets being in South America.

Cynic, I would say of course to a degree you're correct but not to start attributing value to the block when the likes of Petrobras are getting heavily involved in the area and the potential of a joint venture to push forward the exploration process would be naive. It will be interesting to see what Hardman have to say on this, should it not be too late for the next update.

of course potential has a value of a sorts, but not, i would posit, of sufficient magnitude to push sp to say 100

one man's worthless patch of pampas, another man's asset.

How gauche can a gaucho be?