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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.

picses, Here are the trades for 14 Feb 2005 with reguard to CHP. open 2.58p high 3.0p low 2.57p volume traded 6,064,100 close 2.75p. If you were to manage to buy at the lowest trading point of the day you would have purchased 3,891 shares without taking costs into account. If you then applied todays current price of 13p against this quantity you would have 505.83 at most. I think you may have missed a decimal point or something.

I believe what the b'bulls do is assume you sell/buy each time they tell you - building your 100 stake as you go along. Hence they come up with super figures over long periods of trading. All very unrealistic of course and done with a large dose of hindsight. I have only looked at their site once and thought it was rubbish. Don't believe the hype Picses, even when they're talking about your own stock!

they sure as hell won't be taking account of the spread which would likely wipe out all gains and leave you with diddly squat, not to mention broker fees and stamp duty

Sorry guys - did not mean to start an argument - just that in my experience - the shares seemed to have performed in the opposite direction - but as always - memory can be convenient 'cos you only remember the bad decisions

200 mda breached, start of something?

Just copied this from earlier as a fag to find ......

Chart is looking strong ...... just 50 and 200 dma shown ..... obvious next resistance likely to be 200 dma ....... however, all should remain very conscious of the fact that the latest sp excitment is completely expectation driven





steveo .... yes very encouraging to see break through 200 dma

looking at a 1 year chart, 13p may cause some problem and ditto at 14.5p

Not sure i understand all that cynic......sure its all good stuff though.

Just not really sure what relevance charting has to a share like CHP....we all know we will rise significantly if we find oil at Primavera, and we all know what will happen if its a duster....not sure crossing the 200 dma will be much help either way
:)

maybe none, for i accept that charts on minnow and volatile stocks such as CHP can be misleading or similar, but at least they give some sort of benchmark ... or at lesat i think so

in the meantime GPX plummets with report of a dud well ...... nothing that surpising for as i keep saying, commercial finds are about 1:4 if you are very good and lucky.

If there any posters from advfn chp bb, any explanation as to why I've been banned again would be appreciated. Totally baffled....

Innocent Beau....

stock being tightly held at present, high proportion of buy trades are roll overs

Cynic, i think the company regards Primavera as being rather better than 1:4, but we shall see. From speaking to Graeme Stephens at the AGM he indicated it was more like 36% in Colombia, which is better than 1:3, and includes wildcat drills etc. We are surrounded by producing fields. Also the modern seismic is telling our people oil is there. I am very hopeful.

I also think we're bound to find some oil or gas in Paraguay, after all we have permits over 11% of the land mass of the whole country.

Alea is also pretty much a done deal. One strike from any of our permits, on top of Alea, will take the share price to a new ball park.

Lets hope its Primavera to get the ball rolling nicely.

Happy valentines day boys!

beau its pathetic what they are doing over there., I have emailed them

acv .... hope they hit the bullseye with first spud even if it will cost me 100!

level 2 is getting a little sexy, the recent buys seem to have made a difference

Surely not sexy today, FG - romantic more like!

Date Price Signal 100
Became
12.02.07 12.250 Buy 3,598
08.02.07 12.750 Sell 3,598
05.02.07 11.500 Buy 3,245
24.11.06 11.250 Sell 3,245
08.11.06 12.250 Buy 3,534
26.10.06 12.500 Sell 3,534
17.10.06 13.000 Buy 3,675
11.10.06 14.000 Sell 3,675
06.10.06 13.750 Buy 3,610
03.10.06 14.000 Sell 3,610
29.09.06 13.500 Buy 3,481
22.09.06 15.250 Sell 3,481
20.09.06 15.250 Buy 3,481
15.09.06 15.750 Sell 3,481
29.08.06 11.000 Buy 2,431
15.08.06 12.750 Sell 2,431
07.08.06 11.500 Buy 2,193
01.08.06 12.500 Sell 2,193
26.07.06 10.250 Buy 1,798
19.07.06 12.500 Sell 1,798
17.07.06 12.500 Buy 1,798
12.07.06 13.250 Sell 1,798
04.07.06 12.750 Buy 1,730
26.06.06 13.000 Sell 1,730
22.06.06 12.500 Buy 1,664
20.06.06 13.250 Sell 1,664
16.06.06 13.000 Buy 1,632
07.06.06 16.000 Sell 1,632
02.06.06 14.750 Buy 1,505
31.05.06 14.750 Sell 1,505
25.05.06 14.500 Buy 1,479
15.05.06 17.500 Sell 1,479
08.05.06 15.750 Buy 1,331
04.05.06 16.000 Sell 1,331
02.05.06 15.750 Buy 1,310
25.04.06 16.250 Sell 1,310
18.04.06 13.250 Buy 1,069
11.04.06 14.500 Sell 1,069
07.04.06 14.500 Buy 1,069
05.04.06 15.250 Sell 1,069
24.03.06 16.250 Buy 1,139
15.03.06 15.580 Sell 1,139
13.03.06 16.250 Buy 1,188
06.03.06 16.750 Sell 1,188
02.03.06 16.880 Buy 1,197
28.02.06 17.480 Sell 1,197
13.02.06 11.900 Buy 815
02.02.06 12.150 Sell 815
13.01.06 6.830 Buy 458
29.12.05 7.150 Sell 458
22.12.05 6.980 Buy 447
19.12.05 7.030 Sell 447
15.12.05 6.930 Buy 441
14.11.05 7.680 Sell 441
10.11.05 7.880 Buy 452
04.11.05 7.600 Sell 452
21.10.05 6.200 Buy 369
14.10.05 6.930 Sell 369
12.10.05 6.100 Buy 325
26.09.05 8.400 Sell 325
19.09.05 7.900 Buy 305
13.09.05 8.800 Sell 305
06.09.05 7.950 Buy 276
02.09.05 8.000 Sell 276
24.08.05 5.950 Buy 205
22.08.05 6.030 Sell 205
18.08.05 5.880 Buy 200
10.08.05 5.750 Sell 200
08.07.05 4.900 Buy 171
05.07.05 4.980 Sell 171
30.06.05 4.600 Buy 158
14.06.05 4.150 Sell 158
12.05.05 3.430 Buy 130
09.05.05 3.450 Sell 130
04.05.05 3.350 Buy 126
29.04.05 3.380 Sell 126
22.04.05 2.850 Buy 107
16.02.05 2.750 Sell 107
14.02.05 2.580 Buy 100



Disclaimer

of more relevance as i see it, is whether sp is now stalling at this 13p resistance