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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.

M_P_H - OK point taken on the reserve but still a small if. Now on production and please feel free to educate me if I've missed something here. I see no soil/core samples info, for all we know the "oil" could well be sat within a ferrite plate or similar.

Just a snippet from Global re Los Hatos 1 which i believe is next to us re Primavera
and the Mirador formation continues right across Chacos bit, the thicker end.
So you can see the potential and hence why i am holding long term. dyor aimo etc.


Global Energy Development PLC ("Global" or the "Company"), the Latin America
focused petroleum exploration and production company (LSE-AIM: "GED"), is
pleased to announce positive test results from its first exploratory well on the
Los Hatos Exploration and Production Concession Contract area in Colombia,
namely Los Hatos 1.

The Company perforated and tested the Mirador formation of Los Hatos 1 at a
maximum rate of 408 bopd and 700 mcfd with a total maximum rate of 525 boepd of
36 degree API gravity oil. BS&W was only 3%.

Los Hatos 1 will be placed on continuous production in seven days and means that
the Company will have production from five different contracts in Colombia in
addition to holding high-potential exploration acreage positions in Colombia,
Peru and Panama.

The Los Hatos Contract, which was signed in November 2004 and in which Global
owns a 100% working interest, covers 85,000 acres located in the central Llanos
region of Colombia and is adjoined to the Company's established, producing Palo
Blanco field within the Alcaravan Association Contract. The Los Hatos Contract
is subject only to an initial 8% royalty, with the size of the royalty to be
determined by future production levels.

This taken from Chaco report re Primavera and Mirador formation.

After extended and discreet negotiations, the Company was able to secure the
block which covers an area of approximately 146,100 hectares and lies north east
of Bogota. The first year programme involves the reprocessing of 300 km of 2D
seismic data and the drilling of two shallow wells to approximately 3,500 feet
in order to penetrate the Mirador formation, which is the principal reservoir in
the Llanos Basin. Other productive formations, such as the Carbonera, are also
present within the block acreage.

MPH, Interesting figures and I think that applying a heavy discount at this time is prudent until the Hardman Report is available. I have been told that the company is very pleased with what has been fed through so far on that report (told about a week ago) so the report could now be in a finished format now. None of the local directors are in Bogata; I understand that they departed on Thursday for a series of meetings somewhere else en route to the UK so don't think there will be any more information until they get to the UK next week sometime.

Sharesure

Have you and Martin Groak ever been seen in the same place at the same time?

Lol!

mph

Judging by the large buys this week others share your sentiment.
Things looking a little healthier this week, and oil reaching new highs this week are bound to help, all in all a good week after a few disappointing ones after chaco's best ever licence approval!

Re #229 I never reveal where I hear my information. Up to you whether you trust what I say; personally it makes little difference except that I hope by helping others to know more about what they are investing in, I will also continue to get help from them when they know something which might benefit me.

Sharesure,
Very good momentum on sp and good to see those large buys begining to feature on this stock,as always many thx for your fantastic posts.

Merely jesting, Sharesure.

Do keep up the info, please! You (and others) have constantly given more than useful info about chp so that people like me can invest with a degree of confidence.This is one exciting stock.

sharesure.. thanks for any information you can provide, its appreciated and after several months can rely on it being trustworthy.

everybody else.... great thread, have a great weekend!

sorry O/T two companies I am looking as a safe place for my money with steady growth over two years are Serco, and Foster Wheeler (New York)

Thanks sharesure

As part of gaining the TEA was on condition that Chaco do a certain amount in the first year, are they permitted to sell it on?

O/T- Sharesure have you ever looked over AIMR?

Capetown, have replied to your email. Let me know if it doesn't get through.
Dibbles, re AIMR, I'll take a look.
theCreeper, pleased to hear it!

Sharesure,your email has not come through,

Lots big buys on chp,looking good

Capetown, Have just resent it using the thread.

Hi All,

Anyone know if we have news scheduled to filter through this week ?

chesneya, very likely as immediately after the B/H on 1/5/06, analyst/Broker presentations/progress updates are taking place all of the rest of that week. Local directors are due in London later this week.

Sharesure, have you heard similar to me about meetings in Brasil and Paraguay taking place over the last couple of days, I assume this is to do with Paraguay and I am hearing it could be Bohemia. They must have taken place while the Directors were on route to the UK

A very busy time ahead over the next week or so, could see a major change in the market cap of the company.

Please DYOR, IMHO.

Time to get in then, I guess

Cheers guys - considering diverting more funds into Chaco. Been impressed with what they have done so far and with the speed at which they are working. Will also be interested to see how effective they are at securing rigs in the short term.

Will keep an eye to see the effect of the analyst/broker presentations next week.

Is 2nd May the first presentation?