______

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.

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 ........

oil loads of it .

Tanker - I wish I could beleive you - but until I see something that is factual - I wont beleive you either.

TFC - I did understand your point - just not the way you went about it.

Suggest we close the subject - others will get bored.

d'accord ......desole' ,,,vraiment @+ J

Peur seul " Au revoir" !

Suprised @2 mill buys,300 thous sells and no sp movement,pleanty of stock around?

cant resist it but mms buying all that stock without marking up a tick ......either thes a big seller in the background ....or mms are sure you will be selling them back cheaper very soon ,,,,,,,,,,,ok ok IM GONE @+

most were roll overs

TFC, surely, if mm's are buying up stock in large quantities without marking up the sp, then its for a large buyer, isn't it. The only other reason for them to buy like that, is if they are sure that there is a good chance of selling it back at a higher price than they paid. Completely the opposite of what you are suggesting.

Capetown, a large proportion of today's turnover was rollover trade; the only significance is that these are being continued in the expectation of a higher sp. I am certain that there will be more RNS's this week.

Guys, I posted this elsewhere on another thread but it is very interesting so I thought i'd post it here too..

I think we have another RNS very imminent that we knew nothing about....

If you take a look at the CHP website, the current company presentations have been taken down AND if you look at the CHP website it states we have the accounts to be reported on the Friday just gone.... See below from the CHP website....

FINANCIAL CALENDAR
Forecast Key Dates Event Event Date
Next year end (to be reported) 31 - Mar - 2007

Now with this imminent and the current company presentations being taken off of the website, I wander?? coincidence? or something juicy imminent which we knew nothing about???

TFC,

Just checked buys and sells and have taken into account the rollovers, most definitely I would say that there are 100K sells more than buys, level 2 moved on the day from 4 v 3 to end 3 v 4, therefore I would say that the mm's are correct and no change in price is correct.

Get your facts right before making incorrect statements, I like the way matters are shaping up here.

FG - not sure I agree with you - I read it that FYE is 31/3 with prelims being reported on 7th August.

Funny how we can all read the same data and interpret it different. I am not saying I am right - just that I am not sure which interpretation is correct .

but stewart mms dont play with those rules . You are so naive . NOW LET ME GOOOOOOOOOOOOOOOOOOOOOOOOO !!!!! By the way FG, you maybe a very erudite scholarly academian for all i know, but sometimes you ta;lk some really hardcore bollocks

TFC, Nobodies stopping you from going. Its you that keeps coming back. I wonder if you have an alteria motive for this. I am coming to the conclusion that as you keep on knocking this epic, you must be working for the mm's and that your brief is to spread fear and panic amongst PI's so as to scare them into selling their holdings. If you are not currently holding and don't like the company, kindly keep your thoughts to yourself, however if you have something of intrest about CHP to say then please do. How do you plead.

This used to be an informative an interesting board. Please can all those who want to join a playschool go somewhere else to do their crayoning.....................

Use the filter button liberally.
Seems to be confidence from the right quarters that an announcement on the new block and some comment on how the Primavera drilling has gone before Easter. I am sure that the new block is going to be very good for Chaco (if I am right about where it is located). As for drilling, GED state they know that they have oil in their block too at the depth CHP is drilling towards - the current flat-lining of the CHP sp could change quickly and very significantly.

oooooooooooooooooooooooooooooooooSHARESHURE!!!!!


EXITED!!,


I have enjoyed the ride in chp,whichever way it goes!.

I will be happy with 13p by easter - easily pleased me