______

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.

3250
He mess's with me and I'm not respectable, cynic only deramps the shares his got and thats quite healthy by me.
You should also take note of TFC he is a very experienced investor of many years.

let cynic do his thing. from what i can see he posts on the vast majority of aim oil stock threads. has an interest in most and hates them all.

i certainly do not deramp whatever that may actually mean ..... however, i certainly try to dampen hype and/or add a dose of reality .... as for stocks about which i post positively, suggest you look at (for example), DOM, SCHE, RTN, BUR (not the one to be in now), POG and a good number of others ..... PDYOR as they say!! .... or more to the point, suggest you check your facts before slagging!!

as for suggesting i know it all, please guide me to even one post where i have claimed to be the Second Messiah (us brethren didn't think much of the first one it seems)

What has happened to this "quiet" little board? I hadn't read it for some time and am always amazed when some posters have time to sit all day and enter into discussions with all comers. More surprising is when they are "holders" and post all day to warn all fellow holders of the dangers to the share price. I think we all know the risks pretty well by know.

obviously not in some cases .... but please remain amazed that some men can multi-task

cynic
You must have two computers then.

Lizard, regarding TFC, I said some of his comments were worth reading and i would agree he seems to know his onions however we all have different views and certainly no need for personal attacks on here.

no, but clever stuff this modern technology ...... you can have more than one window open at a time

Personally I would love to see posts about CHP and their operations at this moment in time. Everyone has an opinion of where best to invest their hard earned cash so positive and negative posts are fine with me. I will pick the bones from all of them and then make my own decision on where I "place my bet". All opinions are welcome but don't waste time having a pop at each other as every time new posts appear I click and read hoping to see valid points which I mainly do, but every so often we get a string of comments that have nothing to do with CHP and their drilling / operations. We all have an opinion so let's just get a long kids........"Or I'll bang your bloody heads together".....As my mum used to say !

cynic
Nobody told me I've got six of the bloody things.

Sharesure this is the most bullish I have felt about Chaco in its history ;-) . Its our time now!

Newtrim ..... how else can one enjoy biz life? ..... but sort of, i agree

Come on chaps let's make money, not enemies. As I write the market is recovering I hope it continues but we must be on our guard, something that cynic reminds us of in most of his postings (stewart 3250 re 'I have yet to see a complimentary post on anything' - I thought post 2601 was downright bullish coming from cynic ha!ha!) I, and many others here no doubt, greatly appreciate the posts from SS and other seemingly well informed posters and look forward to many more. It appears that we are quite close now to knowing whether CHP is a good'un or not. Good luck to all.
2517

fatgreek
I thought that when GOO went to 17p still you never know.

could have mentioned plenty of bullish threads and comments of mine ..... trouble is, most of you guys seem stuck on penny stocks

.

lizard
I think 3251 was referring to TFC and not yourself.

oh there's a number of precious lovies around ..... fine by me for they just set themselves up to be teased .... bit like candy from a baby though

OK.......To sum up........If we hit oil I'm going to be very rich and well on my way to clawing back some of the cash my ex wife and her tosser of a solicitor somehow managed to get out of me......If we don't hit oil then I'm f***ed.......There, that's pretty much the long and the short I think. In simple terms...FIND THE OIL PLEASE....PRETTY PLEASE.....LET US PRAY.....

Dear Lord,

To end our bickering and to make me rich.
Please find us oil without a glitch.
If that bloody drill breaks in the ground.
I've got a Makita that I can bring round.
Find it fast and let the black stuff flow.
Then I can p**s off to Italy where they still get snow!
If we don't then find me a massive bottle of brandy.

Amen.

lizard, I was not referring to you, thanks driver.