______

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.

Strange old game init.
2517

Takes 15mil to go up 5% 1.5 mil to go down 5% the mind baffles!!!

Cana Petroleum has also been at the centre of a massive spam email campaign recently. I'm not saying the company is behind it - I don't know anything about them. But it means there is a lot of ramped "marketing" on the internet which should be treated with a Siberian-sized pinch of salt.

.

Cana Petroleum are a fraud posing as cano petroleum!!

Genuine or fraudulent I do not think either of them are
responsable for the dramatic interest in buying CHP stock.
I think its a placing or some kind of money raising exercise
the details will shortly become apparent.

M

ML - if you think it is a placing - how do you know that details will shortly become apparent - do you know that - or are you speculating ?? -

Your message sounds like you are speculating about the placing - but know about the details - which dont make sense?

Cana petrolium, the epic is CNPM.PK and can be found on yahoo finance. If they are a fraud, it has been at a huge expence setting themselves up and being quoted on the stock exchange. I prefer to think that they are just spreading their wings.

Bhunt, I am pretty certain that at the present time a Placing is not being contemplated because it is not needed and I don't think that they would wish to at this price.

Bhunt

i am guessing, but going on the market patern i dont think I am far
away when I say its some kind of fund raising going on! As for the details, there is a lot going on in Colombia at the moment, so who knows for certain.
Why do we have a new MM that has strong Canadian connections??

http://www.oilandgascolombia.com/en/agenda.htm

Our operator is Canadian based having bought out Argosy a little while ago. Yesterday we had the best part of 18M shares traded most of which appeared to be buys, where are they coming from?
So you tell me, what do you think?

M

Chaco Resources Appoints Colombia Manager
RNS Number:6419M
Chaco Resources PLC
24 November 2006

AIM: CHP



24 November 2006



CHACO RESOURCES PLC

("Chaco" or"'the Company")





APPOINTMENT OF RESIDENT MANAGER IN COLOMBIA





Chaco Resources PLC is pleased to announce the appointment of Dr. John Wardle as
Chaco's Resident Manager in Colombia, based in Bogota.



Dr. Wardle holds a B.Sc. in Mining Engineering from the University of Nottingham
and a Ph.D. in Rock Mechanics and Geophysics from University of Wales. Since
graduation in 1985 he has worked as a drilling engineer with a number of
international companies, including a year as Drilling Operations Superintendent
in Colombia for BP Exploration Colombia Ltd, and more recently he has held a
number of senior management positions with oil exploration companies both in
Colombia and elsewhere.



He is currently a principal of the Bogota-based company which is a joint
venturer with Chaco in two of its Colombian projects and which already provides
technical advice and representation to Chaco.



Dr. Wardle will assume immediate control and responsibility for the
implementation of all of Chaco's operations in Colombia and will report directly
to the Technical Director, Mr. Graeme Stephens. Chaco will also soon open a
small permanent office in Bogota.



Mr. Stephens said today: "The appointment of John Wardle as our new Resident
Manager in Colombia is a key part of our strategy and will give the Company a
much more visible presence in the country. John's wide practical and
operational experience, as well as his extensive contacts in the industry there,
will certainly strengthen Chaco's position as a serious explorer in Colombia.
He is currently working on the drilling plans for Chaco's three blocks in
Colombia and is in the final stages of ensuring that the rigs for Primavera and
Puerto Lopez Oeste are secured. An update will follow once contracts have been
completed."




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

Just the start of a period of significant news flow in my opinion. Expect more starting next week.

.

ML - I honestly have no idea - it was just the tone of your message - whch suggested that you might KNOW something - as opposed to conjecture and analysis.

Thks SS

Daily Express today: "There was more brisk trading in oil & gas explorer CHP off 1/2p at 11 1/4p, with traders anticipating a bullish drilling update soon on its Colombian prospects."

Is that a missprint [ nice girl, Miss Print ] ? should it read " There was more risk trading "

.

Nice 650,000 buy at the close.

Another blue day,looks like this may be the bottom,buys well above sells for few days now.

Cant remember seeing so much blue,2 mill buys so far no sells,

INTERESTING!