______

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.

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Chaco Resources PLC
28 March 2007




28 March 2007



CHACO RESOURCES PLC


('Chaco' or 'The Company')


PRIMAVERA

UPDATE FOR CACHAPA #1 WELL


Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused
in South America announces that drilling has commenced at its Cachapa well on
the Primavera block in the Llanos Basin in Colombia.


The Company states that further announcements will be made in due course,
following completion of the drilling and evaluation of the results.


- Ends-


For further information contact:

Nicola Brookes, Finance Director

Chaco Resources plc

Tel: 01494 431195

Lindsay Mair Clare Irvine
Daniel Stewart & Company plc Parkgreen Communications
Tel No: 0207 776 6550 Tel: 0207 851 7480


Notes to Editors:


Background


Chaco Resources Plc is an oil and gas exploration and production company whose
strategy is to pursue hydrocarbon exploration and development opportunities in
South America. Chaco currently operates in Paraguay and Colombia.


The Primavera block was Chaco's third venture in Colombia where a fundamental
change in the fiscal laws and an overhaul of the state's management of
hydrocarbon exploration and production permits has created a very favourable
investment environment. Chaco has teamed up with strategic joint-venture
partners (Expet S.A.) who have many years of experience operating in Colombia
and through whom it has been seeking to participate in exploration and
production (E&P) concessions


The Cachapa well will be the first of a proposed four well drilling program to
be undertaken in 2007 on the Primavera and Platanillo Blocks and will represent
a significant milestone in Chaco's corporate development. This will be the first
well drilled by Chaco since its move into the oil and gas sector.


For further information on this and Chaco's other interests in Colombia and
Paraguay please see the website
www.chacoplc.com



Chaco Resources plc has offices in the UK, Western Australia, Paraguay and
Colombia.




This information is provided by RNS
The company news service from the London Stock Exchange





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2006 MoneyAM

Well now my nerves have been calmed slightly,am on the vino.

closing positive?

rns at last - wasn't too hard was it?

We knew they were drilling why did they have to tell us?

You can't please all of the people all of the time

Wish I'd got some now. News at last, how long have we been waiting for this

steveo
If you bought this morning, half a day.

Well here we go, should be blue tommorrow.

Back in today after buy limit triggered. Hoping for good news now.

I believe that this RNS was only put out grudgingly because there was already some talk around the City that the well had been spudded. I still think our new chairman was happy to see the sp weaken in the short term. Notice the RNS did not say when the drilling actually commenced.
It seems to be a general view that he wants institutional shareholders, not PI's, so we can expect more of this if that is the case.

S'sure - I cannot imagine the benefits of antipathy towards PIs. It can and has backfired on many. I believe there is more good stuff to come but it can be done without all this unnecessary aggravation. Not keen on his tactics but if they work, so be it.

Amities / ..Steveo .Reg posting 2781 lol ,,,No need to doff your cap in future my good man . Juste simply bow or salute hehehe....:-) ..ln answer to your question did i jump in at 11p ? No . l believe had it not been for todays rather strained late afternoon RNS this CHP was heading to a spread of 9.50 / 9.75 .-technically middling @ 9.60 . That RNS timing and strained language has all the hallmarks of something quite not right .- on first glance as if NOMAD/S had been on thier back or P/R were banging their drum for CHP to at least clarify spudding of well.......As for s/p ? l would even like to be of the opinion this was MMs either shaking the tree,or heavy PI selling . ? But No. No. .Not at all . Trading supports otherwise . More of the "British school tie " creeping in to keep that " puer robustness sed malitiosus " ,to wit the PI s in order thearby allowing their chums in on the cheap .Would you be following my drift if i told you a man in the parks yorkshire terrier told me that even mms have ,,,err certain weaknesses ,,the lurid types that one would not want made known among their dinner party bourgeois,,,,,,,,,,, market manipulation is to big to be stopped ..Utterly disgusted by it all. Happens to often; and i was on the point of..,,,,,,,then on sudden impulse i bought @ 10.39 and pondered how low one can sink in this mire. ??..As DeNiro says in Casino ,,,When it comes down to it, its always the dollar .Always . Always . .... Anyway give me a couple of points of froth on s/p and i am out......... OT .All data from usa,esp from subprime mortgages / loans , looks dire .......Prepare for a litttle bloodletting in that sector . ...a'bientot ..@+ J ........

Snap ' J ' , i bought @ 10.88

Amities Roly . hoping all is well ...........up early arnt we? Well you actually hehe ...........

Mention in the Times business section this morning.

Who cares about the chairman's personal characteristics and tactics - all that matters is finding some oil!

blackdown, agree that finding oil is the priority but what appears to have been going on yesterday was not in existing PI's interests - or at least those who have been with this stock a long time and were beginning to sense that there was yet another delay. I won't say any more on it unless it recurs but quite a number of shareholders who are also large holders of CHP have privately been of the same opinion.

yup indeedy.. and i can think of a damned site better oil joes than this motley crew ..Oil ? What is half of NOTHING ? lol...........ln yesterday for a modest 158,000 @ 10-39p and 10.5 ....and out today @ 11.59 ....a quick 3k in a company your not comfortable with has to be sold ..... Plus forever the % man ,,,,,prefer watching this one than owning it .....Tread very carefully here ....for methinks after rns froth wears off it will be on a ride to 9p and stop losses will auto trigger and then 5p if your lucky !! which i obviously hope you ALL are ...Removing from watchlist so see you all as results of first well are forecoming ..... .. Au revoir mes amis @+ J

The Times

Chaco Resources held steady at 11p despite news that the explorer had started drilling a well at its Primavera oil prospect in Colombia. Investors believe that it could be sitting on something bigger, given that it said last month that there would be news on a new exploration project this month