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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.

Omr , makes us lot seem sane lol

Hi all.
Been out this afternoon and evening. Now rather wobbly on my legs, lips and keyboard.
Rather like I will get on 19th ! ;-)
Good to see so many sensible posters on here. I wonder what brings them. LOL

FG (and others), I will persue the matter more with those accusing you of spamming . It looks like someone else with access to your computors (hence the recognition) has also managed to access your account/codename and spammed like mad.

Gotta go. The lovely M is making noises (encouraging ones). See you tomorrow
T

Hi guys, and E.I.L.
Just paid my transfer fee from that other site to re join my friends on here.
Dont post a lot, but read , learn and digest everything.
But prs 78 is the one who books that sofa down you know where.
Must let Gismo and Rafboy know where we are.
Regards to all.
prs 78

despite the thankfully rare lapses into personal abuse, this site is generally pretty sensible and constructive (self apart!) ...... am sure you "newbies" will maintain that

good evening runnerpete! welcome aboard!

prs ... Hi. I can't get used to seeing EIL in print, and recognising it as me, so everyone can still call me omr. I'll recognise that.lol.

Good to see you over here with us. I'll still check the old one from time to time though, just to see if there's anything interesting.

ok, am having an early night tonight. Catch y'all tomorrow.

He want's to be called omr incase we start calling him nutter!

R123, thanks. EIL, much prefer the omr.
Also off to bed now.
Regards to all.
prs78

blimey we got a few split personalities here!!

For those of you who get bored - go and look at the NOWT thread - it is specifically for those who have a few minutes to spare - and is usually full of jokes and topical comment

For you newbies - MAM are doing a free trial of Level 2 during March

Hello fellow Chacolites. I post very rarely in the other place but as I follow and enjoy the daily musings of fellow holders I've decided to follow the migration over to here!

I agree with others that FG was the best soothsayer of L2 I've known so I've migrated too. Don't post much but been in CHP for a year now and I'd hate to miss the discussion when we're so close to discovering if it's been worth while for us all.

Pleased you have found a new home FG. Will follow the discussions on here now.
Thanks for the excellent commentary re CHP.
Let's hope we all make lots of money.
Can I also take this opportunity to thank Trotting and others for their enthusiasm and insights.
Back to lurking now .

like to others above i've been following the banter over on A.D.vfn for a the past 2 years and will continue to follow here, good luck FG

I also migrated although I dont post very often, I decided to follow you all.

supporting F/SGreek!!

Me too......I was "Leftfield" but that was taken.....bye bye ADVFN !

Bye bye ADFVN too - what a joke.......

Haven't posted on here for ages, but will do so now from time to time instead of there.

Morning all!

a polite request to the hoard of newcomers ..... we are all delighted to have you on board, but as bhunt mentioned, please can (most) general chitchat be directed to the NOWT thread so that specific threads do not get clogged .... very many thanks