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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.

SS - yes, and I see Imperial up nearly 40 per cent today on the back of a reserves update. Not bad!

Cynic dont forget to attire SS in his jackboots now will you ?

soul* may prefer the soft kid gloves approach .... he really has gone very quiet and coy!

a moot point ; but i am positive SS is the dominant partner of the two,,,and prefers the cane to the carrot . ...oh dont despair c he will appear when his army of ranters commence to vent their spleens on us ,,,,,,,Quite undeservedly of course, you understand

hence SS I guess!

YES !!! Super stud ! ..your guess was correct ,,,{ in his dreams -naturally )

not quite what i had in mind!

me neither ,,,,but lets not go down the SS road ...l had enough of that with Testex ......whatever happened to him besides going to clink for the NML rip off ?.... Cops raided his house/ confiscated PC and .....well im not saying anymore ...

Evening all! LMAO here in Bournemouth. It's nice to be talked about (thanks, Cynic; grateful for your patience with a bunch of old cripples like me and Sharesure). Fame or notoriety, it's all the same to me :o)

Wish I had something useful to contribute about CHP, but this is one I have never followed.

Evening all! LMAO here in Bournemouth. It's nice to be talked about (thanks, Cynic; grateful for your patience with a bunch of old cripples like me and Sharesure). Fame or notoriety, it's all the same to me :o)

Wish I had something useful to contribute about CHP, but this is one I have never followed.

alzheimer's too by the looks of it .... forgotten you had only just posted!

Not long now and a new licence to be announced any time ;-) any day we could have all of this...

LONDON (AFX) - Chaco Resources PLC, the oil and gas explorer and developer
focused on South America, said it now expects to spud the Cachapa #1 well on the
Primavera block in Columbia in the first half of March.

probably ,,,,but do you not think living in bournemouth could have a lot to do with it.

FG...would you be kind enough to indicate L2?

3 v 1
13.75. 14.25

lizard would you be so kind as to furnish the same info for goo?,looking good this am.

MPH,

If you are about and have time can you do some tidying up over on advf.
That Daneth guy is just a spoiler of the thread imo.

Regards,

stuart.

ct- L2 goo.

1 v 2
7.5 -8

thx lizard

thanx mph.