______

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.

Barry, he's best ignored. Don't know anything about his background other than he appears from time to time just to irritate everyone else; the filter button was specifically devised for posters such as him.
Hope that this week will see more details emerge of the next Colombian block; there seems to be a lot of secrecy about it which is a very good sign that it is something special - as alluded to by the Times last week.
As for drilling, this week should see TD reached on CHP's Cachapa 1 well (and the Capibara well?) + more news updates from GED. In the light of the recent reluctance on CHP's part to release any news GED might be more helpful to us than our own company. Should be an eventful week and all being well and a successful one.

i thought the filter (squelch) was specifically introduced as a soothing panacea for for me when in alter ego mode of Thrush!

Morning all - LOL

New broker/nomad just announced. Blue Oar Securities appointed with immediate effect.

good choice of words from Andrew Monk!

SS - spot on again

Barry, on what, TFC or replacement Nomad?
Apart from the new Nomad, are Billy Clegg/Caroline Stewart CHP's new Finance Director and team? Mention of Giles Clarke and John Wardle as the existing mgt team suggests that they are the only two executive mgt. Has Nicola Brookes become a casualty? Think another RNS may follow very soon.
As for Blue Oar as Nomad, I hope that they have an existing strong oil and gas sector with an established reputation; I have not come across them on any other O&G stocks I am in.
I think that I have figured out where the next Colombian block may be located; in deference to CHP and their wish to keep this very quiet (maybe to keep the competition away whilst they grab further areas nearby?) I'll keep my thoughts to myself other than comment that if I am right it could be their best yet.

SS

just tell us its not in Llanos Basin!!
(too much heavy oil and water)

M

M, It isn't there in my view.

ss - I was referring to Nomad. TFC not worthy of discussion

With so much going on its somewhat suprising to see how thin the volumes are so far today,guess everyone in this now is here to stay and holding thumbs,i would have thought buyers would be queing up in anticipation of good news.

Looks like i spoke to soon,shareshure as always many thanks for your continued steady balanced updates.

I believe the FD after Bill Clegg/Caroline Stewart may refer to Financial Dynamics their PR company, not a new Finance Director.

this sounds excellent to me,,,, tell me what you guys think???

Giles Clarke, Chairman of Chaco Resources said:

"We were impressed with Andrew Monk and his team and their plans for Blue Oar in the oil and gas sector. We look forward to working with them."

Andrew Monk, CEO of Blue Oar Securities plc said:

"Blue Oar Securities is delighted that Chaco Resources plc has appointed us as Nomad and Broker and we believe the management team of Giles Clarke and John Wardle can deliver a prosperous and exciting future for the company in the E&P sector."

Capetown, thanks. Will try to keep up the comment but might get more difficult to pick up information/hints in the future. That may not matter anyway if drilling results are positive.
Looks like no more Parkgreen as PR. No loss. Think that Financial Dynamics was GC's Majestic Wines PR company so his grip on everything in CHP seems to be tightening.
The reference to only him and John Wardle on the last RNS sounds ominous for some of the other exec. directors. The Perth trio have always intimated that they would move aside during the production time but remain connected as non execs.. and via their personal and family shareholdings. So it looks like we are now about to go into the next phase of CHP's development moving from just an explorer to a producer as well.

Interesting the limited buys are such large tranches

Albeit the trading platform AIM has provided has become a great success with a mere 3% of all floatations p/a ending in administration /liquidation , it has also in recent years become a dustbin for mining minnows whose chance of success are so remote that it beggars belief . Unfortunately this is one of them . l humbly (sic) suggest you read of the past achievements of both board / snr management in regarding their stewardship of GMS which manifestly shows these charlatans for what they really are - inept, vaccillitating and , at best ,naive' ,and at worst , bloody useless. LOOK for yourselves via GMS ' own RNS and read of the biggest load of misinformation/ bullshit that they dreampt up to keep the turkey afloat . ln addition to those who can actually read a simple chart. The mechanics/ dynamics of CHP in relation to the ACTUAL market are very soft and weak with NOTHING but waffle supporting its s/p. The market is fickle at the best of times. But in these topsy turvy times in a market beseiged by both restated / current negative fiscal USA data suggesting that a day of reckoning is almost upon us , it is not the time to sink cash into highly speculative penny shares.-esp pure expos with NO tangible reserves or assets .Look at JKX - lt doubled both turnover and profit yet the market fretted that it only had a 44 mbboe reserve; and punished it accordingly . lf CHP first well should be proven to be non commercial or a duster its s/p will plummet and sink . Juste like GED ...ln markets like this VALUE stocks in the 350 with very low gearing , a very healthy cash flow, high dividend cover, and a full order book is where the clever money is going .Not in this precarious peice of crap . . Without mentioning names CHP is championed by the same well meaning types who were so dogmatic and waxed lyrical about the likes of NML , SEO , ARX , and look what happened to them .lt beggars belief .And on each of those occassions l held a very contrarian view , held short ,declared the fact and faced such hostility and vitreol that i realised these BBs are not for discussion at all . Sadly used more for big holders to dilute their fear and seek solace in numbers .......No-one likes a party pooper. That much is self evident ..................but the lemming culture continues relentlessly . ......lol Luckily for me ,,,@+ J .....lncidentally to the individual who imagines i hotfoot it around London to make money - i dont need to be running to my brokers to make a buy/ sell you stupid ignorant man. Already well located with NO dealing costs . Also it is not difficult to trade near the top of market ...On any half decent traders platform it shows how many slots mms need/ want filling before he will drop or raise spread . lts not effing rocket science . .....As for old Hunt-il a toujours quelche chose a' dire . hmm tres sournois. .Tu salaud .. you take issue with me over one thousanth of a penny and seven hundredths of a penny. And as petty as it may seem i feel you have made a moot point with some justification . l do feel however that you missed the REAL point i was making in that i am juste happy to be out of this stock !!!! The profit was quite coincidental . ,What i find ironic is the fact that you extol the wonders of this stock yet from what you say you like myself are quite glad to have rid yourself of a % of your holding . Finally you say you are good with your hands .Personally i use my head,,,,think about it .......You would be a very silly chap to want to fall under my hands .............

for someone with no interest in chp, you seem to spend a long time writing on THIS board......


oh and by the way, in case you hadnt noticed, there have been several new additions to the management since the GMS days. I'll stick with what BC says not what some irrate man says.

TFC ..... can't work out whether anything you say is interesting or not ..... apart from the fact that the english is mangled to incomprehension (not your mother tongue, i accept), but you are so long-winded it is just too much effort to wade through

merely tying up some loose ends 123 ....lrate?? LOL ..certainly not . ...Try reading The art of war .............But in order to make you feel better l wont be back ..lol..................FIN ........