______

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.

greyhound - interesting find. Thanks.

Nice 600,000x buy,
Interesting to see the odd large buy soaking up the sells while this sleeping beauty catches up on sleep

cynic

to save you having to move your finger chp are expected to announce drilling contracts imminently for 2 areas in January 07 ie 7 weeks.

Hardman update just out
http://www.hardmanandco.com/Research/Monthly_Nov06.pdf

Green line = 200 dma
Red line = 50 dma


Both tracking gently upwards, though potential resistances not that far away either, though quite reasonable support showing at +/-12.25


To show my faith, having sold about 50% at 13p some weeks back, have now bought those back at 12.45p ..... for all that (JB should note!), if all goes pear shaped, it will not break the bank

Looking at your chart cynic, it looks like we might get a golden cross soon if the sp climbs a little...that combined with a some good news announcements could get the sp moving further north.

i saw that too, even though the two lines are only moving gently upwards ...... to my mind, a golden cross is more of a comforter than anything else, supporting a buy trend.

A golden cross would be sweeeeet.

these have to be a buy at this price, with events coming over the next weeks, months it won't be at these levels this time next year, or I'll eat my hat. However I don't expect much upside for the next few weeks unless GED hit the jackpot. However I personally can't wait until next Spring.

Steveo, re your post on GED drilling programme, 15 days sounds a long time to drill 3000' - I am sure that I heard one of the CHP directors comment that their drilling programme, which will involve drilling to twice that depth, will take them
8 days/hole. Maybe the extra time it will take GED is because they will be drilling production wells which involve a larger diameter drill hole?
The decision by GED to drill production wells straight off is either a massive signal of their confidence or because they have too much cash. If it is the former then, as two of their holes will pierce CHP's structures, it should follow that we can be reasonably confident of CHP getting some reserves identified ahead of CHP's drilling programme in January

Sharesure
Are we expecting any other news before Jan. which could help the SP.

bodeng, Yes.

Sharesure

On a scale of 1-10, how confident/sure are you that Chaco will be entitled to some of GED's findings. Thanks.

Alfred

Alfred,
If the two structures (out of five being drilled) which CHP believe span the boundary of their respective blocks, then I understand that it is a matter of the Colombian Gov. acting as arbitrator awarding production between the two companies. As to whether all five structures will yield oil, GED seem to think so since I am told they are drilling all of these as production wells (either very confident or a little rash? - the success rate of drilling in Colombia has been very good, but not 100%, maybe more like 80%?).
Interesting snippet from the Sunday Times yesterday: Sherritt Int. Corp. is believed to be spinning off its oil and gas business via Canaccord this week. Production of 5.475m barrels pa (15000 barrels/day) in Cuba (higher tax regime?) is believed to justify a float price of 785m. If the well life is 10 years then that is the cap.val. 785m for 55m barrels (proven and producing) unless they have other reserves or it has a longer life span. CHP are hoping to establish considerably in excess of that from just PLO; Alea is hopefully full to spill point which gives them 25% of a possible 70-80m barrels and then on top of that there is Primavera.

Sharesure
How does the 80% figure affect Chaco's blocks in Colombia?

sorry to be my usual cynical or even caustic self, but nothing is ever certain in the E&P game until the result is truly known ...... not fair to poor old Sharesure to ask him to read the entrails, when the actual animal is not even known yet

Cynic, for once I agree with you!! That's kind of worrying! Let's just wait and see.

can't cope with anyone agreeing with me, let alone you! ...... think i had better take a strong sedative and lie in a quiet and dark room!

Now theres good news ......and theres bad news

Global Energy Development PLC
16 November 2006


For Immediate Release 16 November 2006






GLOBAL ENERGY DEVELOPMENT PLC



OPERATIONS UPDATE



Global Energy Development PLC ('Global' or the 'Company'), the Latin America
focused petroleum exploration and production company (LSE-AIM: 'GED'), is today
providing an update on its operations.



In order to actively manage reservoir conditions of the Tilodiran field the
production rate of the Tilodiran 2 well has been voluntarily restricted over the
last two months to 750 barrels of oil per day ('bopd') and this restriction will
remain in place for the remainder of the current financial year. In addition,
two successful workovers were completed later than expected and therefore began
contributing to production three months later than planned. As a consequence,
total production net to Global for 2006 is now expected to be in the region of
405,000 barrels of oil. However, daily production, net to Global, currently
stands at approximately 1,550 bopd, a marked increase on the average of 947 bopd
for the six months ended 30 June 2006.



Capital expenditure for 2006 remains broadly on target at an expected $16
million total for the year, with cash flow from production continuing to cover
2006 contractual obligations. Capital expenditure for 2007 will be aligned to
operational cash flow from existing production and production growth from
additional wells planned for 2007.



Drilling of three delineation wells on the Primavera field remains largely on
schedule with rig mobilization having been delayed just over a month to the end
of December 2006 due in part to continued adverse weather conditions in the
Llanos Basin. Rig mobilization will take three weeks and the first well is
expected to be drilled and completed in early February 2007. It will be
followed in quick succession by two further wells and an extensive seismic
programme. It is expected that all these wells will have a positive impact of
the Company's production rates early in the second half of 2007. The drilling
of three delineation wells plus acquisition of 3D seismic as opposed to the
previously envisaged five delineation wells during the period should better
prove up reserves in the Company's opinion and a full development programme will
commence on the Primavera field in 2008.



Two other wells originally planned for the first half of 2007, Los Sauces 1 and
Tilodiran 3, are both likely to be the subject of some delay. In relation to
the Los Sauces contract, the Company will fulfill the seismic acquisition and
reprocessing commitment with work beginning in January 2007. However, both
wells are liable to now be drilled during the second half of 2007 due largely to
a lack of availability of a suitable rig in Colombia. It is hoped that the same
medium-heavy rig once contracted will drill both wells back-to-back.



The Company is also assessing farm-out opportunities for a number of its longer
term exploration projects across its Latin America portfolio with the intention
of expediting progress on these projects through access to suitable drilling
rigs.

so where's the good news, unless one wants to buy some shares cheaper in the near future?