______

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.

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

capetown---------I don't know of anyone who actually enjoys losing money. We all have to be prepared for that, but enjoy, I certainly don't.
2517

sharesure: I like the last bit. I certainly hope so. Let's hope that new PR outfit have something to get their teeth into!
capetown: I trust you mean excited!! Now would not be the time to get exit-ed.

bigwave, i do,

2517,i would not enjoy loosing any hard earned money,but chp for me has been a stock that i have faith in,so much so that its almost unhealthy,the saying,if youre not in it,you cant win it,with that one could loose everything.
I believe in enjoy all that you do,or dont do it at all.that INCLUDES investing.

Good luck.

Capetown - EXITED or EXCITED??

stockdog,i mean, CDTIEXE !!!

SS - i know its an almost impossible question but what do you rate our chances of finding oil at Cachapa? 50/50? they must be almost at TD by now so should have some indications. Im very excited but also quite nervous, preparing myself for any bad news, however, the new block should help support the SP.

I posted this on the advfn site and felt the need to post it here...

I want to see is if PV actually holds 400 million barrels which it is rumoured to hold.

The bit where many PI's with CHP/GED have gone wrong is to they have attached us to GED too much which caused many to have a decreased in the confidence of our own well and caused the last drop in our SP when GED issued their RNS.

I for one would like to say there are many companies operating in the Llanos basin. All ARE seperate entities and have found oil. Only GED with a questionable drilling method we're unssuccessful. I do sympathise with all those who lost money in GED but guys this is CHP. Different block, different mapping, different technique. Some strike oil, some don't risk ratio is 1 to 3 and we all take our chances. All this talk about the management not being up to standards . I think we should take some acceptance that we caused the SP to dip by linking these two companiess too closely together.

Someone here, after all of this gossip and rumours, I challenge you to show me PROOF that we SHARE the same block as GED. Otherwise lets just talk about CHP and stop linking the two as this doesn't do us any favours and if we can link ourselves to GED, lets do the same for LUKIOL and everyone else in the Llanos basin who have found oil.

And I for one will buy when funds are free as I have seen nothing from OUR COMPANY (NOT GED) to state otherwise! until then its business as usual. rant over!

Thats all well and good FG,but have you not said in previous posts that our sp would rocket as ged news got closer???.

capetown - good! The past few months have been a bit of drag but it will require a CHP announcement or two to spread the excitement.
I don't relish the idea of more "no news" torture esp (as robbi points out) we must have reached TD by now.
Good luck.

I thought it would add confidence yes but now we have to look forward and wait and see what we have as until the results come we don't know

why is our ceo so lackluste is he any good.