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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.

Bodeng, don't know for sure as some reckon GED will announce their drilling results on the first of their wells first thing Friday, 2/3. I can think of a few things CHP should soon be able to announce but predicting when is impossible.

2,650,000 trade just in

Hi Beau, its a B trade, broker to broker, having said that, they have purchased them for someone. Wish I had 321,250 to spend.

LOL Oily, in my haste and excitement, didn't spot that.

Beau

interesting.

ged up 7 p on more sells

"ged up 7 p on more sells"

It's lost twice that this week hasn't it?

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

Chart is looking strong ...... just 50 and 200 dma shown ..... good to see 200 dma providing much appreciated support ....... however, all should remain very conscious of the fact that the latest sp excitment is completely expectation driven




next major resistance is at 14.50/14.75

Cynic, it is also driven by a raft of new investors who follow 'our man from the Majestic.'

does he sell wine too?

all shares are driven by expectation.

price very speculative and frothy / morelike resistace @ 13.75 /14p .ln saying that Bears cannot deny CHP has worked up some momentum to enjoy a mark up of 6% on relatively thin volume. .. AS for majestic ......he comes and goes but what and who he is nobody really knows ...@+ J ........As for posters who constantly compare them to GED is understandable considering both mine in one anothers back yard ,,,but i would have thought EEN who have been in this area for ages were a better barometer than GED ,,,,,,Everything when factorized depends on the results of primavera acreage/ lf non-commercial, the company is in beeeg trouble . ,. bonne chance et al ....

The French Connection ... Hi. Its not just the fact they dig in the same area, but GED's field where they are drilling at the moment actually straddles the border between GED's and CHP's block. If either one strikes oil, there is a process called 'unitisation' whereby they take the size of the reserves in the respective portions of that field in each block, and all oil proceeds are divvied up between the two, the percentages based upon the percentage of the field that each company owns. The payments are made in the form of royalties, and also take into account the costs of the oil produced. It is actually a complex formula, and I believe the details may be found on the ANH website. So GED's current action is actually quite relevant to Chaco.
Regards, omr

Thanks EIL -be great if GED find oil first to give Chaco a boost before we know Chaco's results.

Amities El L. ...Comments very much appreciated: albeit i disagree.....as always ...hehe ... You are reffering to the Primavera wells located within the Columbian Luna Llena contract ? Yes ?? By GEDs own admission they are no more than delineation wells with each one of the proposed five yielding no more than a couple of hundred bbls p/d each .Hopefully not but some could be dusters. But being delineation wells they are very cheap and quick to drill by modern drilling standards -65-80 days to level desired. . As for unitisation -usually where two bluechip/medium sized oil companies drill in neighbouring adjacent acreage ,or even a number of km away, and both find columns bearing copious net pay, only to later fully understand the geology of the area , and conclude both strikes belong to the same giant resavoir .........l beg to differ EL L. but i doubt the scale of GEDs strikes will warrant, or even call into play , the process called unitization. But all the same a pschological boost to CHP i suppose ....lf we were talking about strikes of even 5,000 bbl p/d the story would be quite different . But we are not; and GED have bigger projects to be worrying about .......Finally; A the back of my mind i l seem to remember one of the biggest strikes of the past 20 years was at Cusianna field in the foothills of the Llanlos in Columbia bigger than both Sihil in Mexico and the Karachaganak fields in Kazakhstan.; With the potential of a new "Niger delta " some would say; and what with the geopolitics of the delta perhaps a safer bet....Bonne chance et faires attention ...il-dit en soirrant ....@+.....

TFC Drivel; filtered.

....and I was just about to ask: "Parlez-vous Anglais?" !!

TFC - Stop murdering my language.

Hi TFC ... Whilst I take on board your comments, I do feel it has never been made entirely clear whether the targets Carbonera/Mirador are actually holding heavy or lighter stuff, for all our neighbours who have recovered oil have found either, and we appear to be sitting somewhere on the border of the 2 types. Information coming out of the company has also mentioned both types of oil in the past, so it is a little ambiguous which type we are likely to find. But oil is oil, and is still worth a lot of money, even if the heavier stuff comes out a bit slower. At one time it was believed the Mirador formations were the more productive oil bearing oil sands in the area, and they have certainly produced a heck of a lot of oil very closeby. But when they analysed the El Miedo findings at the well that produced 97bbls, they found it was from the Carbonera layers. The Mirador was found to be 'not present' at that site. Of course, being in the area where the Carbonera is known to be present, but on the edge of the Mirador too, with their respective different types of oil, then there is a chance that we may find one or both, and until the drill brings out the mud samples, we still won't know whether we have light, heavy, or both. My own interpretation of the available information is that The Carbonera which is shallower, sitting directly above the Mirador, holds a heavier grade, whilst the Mirador below holds the lighter grade. There may be a befefit though, in making the Carbonera our primary targey, for the Carbonera is much shallower than the Mirador, and as such is only a short quick drill, as opposed to an 80 day drill that you suggest. It depends whether they decide to carry on to the Mirador if they find any pointers to a deeper reservoir along the way.

As to GED's wells being delineation wells, I do believe their intention is to quickly complete to production wells asap if the flows are good, so I wouldn't discount them at this stage.

I confess I am not completely versed in the intricacies of the unitisation process, but felt it was worth mentioning to illustrate the fact that GED's results are very important pointers to CHP holders, and may give a little encouragement to CHP holders if GED do nicely in our joint reservoir.

Regards, omr

This from the Prostate Cancer Charity site,

I know that some will already have seen this as it is included in a different thread. I am after as many signatures as I can generate so have started up a new topic just for this. Thanks to those who have already signed by the way.

If any one wants to sign the petition re testing it has been accepted on the Downing Street website and can be found at

http://petitions.pm.gov.uk/psa-testing/

It reads as follows


We the undersigned petition the Prime Minister to begin regular
testing for prostate cancer in men between the ages of 40 and
70

Prostate cancer is the largest cause of male deaths. A blood
test, known as PSA, can indicate that there is a problem that
needs investigating. In the Tryol district of Austria this is
being done and the mortality rates have fallen. Too many men
are being diagnosed only when it is too late for treatment to
be more than palliative.