______

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.

OH dear I dont think these MAM guys want us to go now, do yo?

fg

looks like democracy and subscription fees wins!!!!!!!!!!!!!!!!


pile

sorry about that, my advfn nickname was banned here.

OK I will stay on both boards now as some are still on the other, for the likes of beau etc I am here with you boys ;-) and for those that cant move from the other I am with you boys too! lets rock !!!!!!

ok a quick serious question guys,,, do you guys want to go back to advfn? I thank you all for moving here but where ever you all feel more comfortable I am ok with, I will post on both boards but the majority of you should stay on either board as a group so we have no confusion.... take your pick,, beau/acv this is my home too now so I will post on both boards following what happened.

LOL Yuffy, those were the days eh.

Never been banned here or iii or fool in 4/5 yrs. I'm a good boy usually. Didn't really deserve being banned over on advfn yesterday though I did send in a couple of scathing emails and I guess the truth hurt them. It is their loss and MAM's gain.

I'm getting used to the format here, not bad at all.

Beau

.

2 vs 1

200k vs 100k

need some buying action boys!

edit,

1 vs 2, possible treeshake coming!

Yuff

Or is it Yufff, which is which?
ff= J or C


this is like morse code

M
007

OOOH a big fat greek boy-how I just love those kind of men-Are you spoken for bigboy-you seem to be so well liked here!!
My name is Gail and I am so in to CHP-I will follow you big greek boy whervever you go:)

LOL ;-)

Blinking heck FG how do you do it?
Fut.

Hi ML, lol Fut I think we've all moved back to advfn, Gail you're welcome to join us , beaus been reinstated too ;-)

Fut
And you should see Mrs FG - neither F nor G.

Don't know how he does it. Must be something in the water!

Tony, you cad! fancy Mrs FG indeed! just when he's pulling!

Looks like the retracement has stabilised

ML

was C's explanation ok?

Bit quiet today, would have expected alot more buying today as drilling could be imminent.

Blimmy an exodus clique from the dark side has arrived, surly were not worthy, welcome to the board.

Hi driver ;-)

Sola have decided to some assets to focus on their more lucrative ones... .and guess where these highly rewarding/less risky lucrative projects are??? Yes in the Llanos Basin.,,.,. (same as Primavera) . Looks like others are seeing how lucrative the llanos basin is.. As Lukoil have already , with the 100million barrel find..

09 Feb 2007 07:33 GMT DJ Solana Resources Ltd Consolidates Colombian Assets


Edited Press Release


LONDON (Dow Jones)--Solana Resources Limited Friday announced the consolidation of its Colombian asset portfolio through the disposal of 100% of its rights and obligations under an Exploration Participation Agreement (the "EPA") to Ramshorn International Limited signed February 8, 2007 but having effect from December 1, 2006.

With the agreement, Ramshorn will reacquire 100% of the EPA assets which includes the five Colombian oil and gas exploration prospects, Guayabillas, Puma, Guariquies, Alamo and Zeus.

Pursuant to a recent management initiated strategic review of Solana's wide ranging asset portfolio, the Board of Directors reconfirmed its commitment to Colombia and identified a number of high value assets to be the strategic focus of the business. These higher value assets represent the best risk/reward ratio and are generally characterized as having:

Solana as the operator

Solana at a high working interest

Solana not promoted

Attractive fiscal terms

Integral to this strategy is moving non-core assets out of Solana's portfolio, allowing capital and human resources to be focussed on these higher value assets - located in the Llanos, Putumayo and Catatumbo basins.

'allowing capital and human resources to be focussed on these higher value assets - located in the Llanos, Putumayo and Catatumbo basins'.