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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.

Annie,

Developing Alea would be sensible, but they only appear to have a small percentage of a relatively small potential resource. I suppose it might help the price recover slightly, but it could be sometime before the asset is developed (rig availability etc.) and producing. You probably need to ask yourself if it's worth waiting, or if the funds in CHP might earn you more elsewhere. Personally I wouldn't hold. I think the price is likely to suffer in the short term, as many will cut their losses.

Aldwickk,

I get the impression from some of Sharesures previous posts that he had a large holding in CHP. If that's the case he may be nursing some very large paper losses. I could also understand his reluctantance to post, having been so bullish on the company and thus far dissappointed. It's easy to be wrong when everyones happily in profit, but not so easy when everyones nursing losses. He might also be away over Easter.

In my opinion.....

Strawbs.

Presumably, the current management were aware that the drill that has just been abandoned was a dud when they appointed the new advisers. They have also distanced themselves from this particular concession, whilst indicating that they are negotiating for other opportunities.

My personal view is that CHP will come good but that, as ever, shareholders need to be patient.

Come back Sharesure all is

Amities Aldwick / Salut ! ...< last post as bored sick by this CHP > . French flag flys proud and high.. News has it that Field marshall Von Sharesure ignomiously surrendered his forces but has himself gone into hiding- .sources suggest a cubicle in a public lavatory in Bethnal Green or was it Hackney via 27 public houses and a trindaloo curry house ....ADMIT IT SS !! YOU WERE SOOO WRONG !!!! . Yet no contrition reg. your dogmatic opinions which verged on propoganda and misinformation . No plattitudes nor words of comfort then for your sychophants ?? l am surprised. . As it happens i derive absolutely NO satisfaction, and i emphasize , NO SATISFACTION from YOU or ANYONE nursing fiscal losses !!! And for that fact i am truly very sorry. But it was you and your fellow cronies continual demeaning of my opinions and my English that rankled me - pur et simple- and yet i was right all the time .As for tuesday it will bring only worse as those traders( who went home early for a long weekend unsuspecting an RNS so late in the day ) and PI's without access to the market on thursday afternoon, due to other work commitments, will be out like a shot : and in doing so will trigger a plethora of stop losses @ the 5p level NAV -- No more than 2p ,,.....MY position . VERY SHORT ........@J ....Robbi123 .....What a load of HOT AIR ! Results speak volumes . Bullshit walks ! ..@+ J .

lol very short, just like he bought 158k shares and sold for a profit although no trades matched up, i'll give him one thing he is king of the bullshitters!!!!!!!!!!!!

of course if it goes up tuesday he will pick a buy trade near the low and call it his LOL

wHAT AN ABSOLUTE pr**k ............!!! I WOULD never again BUY THIS utter DROSS...... l LOOK FOR VALUE ; NOT A GOOD LARRUPING !!!!!!! nOW PISS OFF AND PLAY WITH YOUR DOLLS...... and not the plastic ones. Mummy hid those in Daddys garage... Up on tuesday ..lol WHAT a tosser

TFC, I don't normally comment on you but if you have no interest in this share why waste your time posting on this board. It don't add up in my book.

Yuff, these people amaze me.

FG ..........But i do have a position now mon ami - SHORT .......

Hardman report-
400MMbbl and 120p p/share on Primavera alone. how wrong can you be.

of course there is the next drill but im not confident at all.
potentially another write off like PLO.

Theres nothing to forgive sharesure for ! He gives out good factual info which is usual correct albeit a little delayed sometimes,I can see no reason to blame him for the first drill being a duster his posts make alot more sense than most on here.Regards to FG too,keep doing what you do on both sides! As for others why not get the ferry home you bore me with your drivel.....

SH

oh well .... 100 will help drown the sorrows .... glad i only have relatively small stake here as in GOO

SH thanks for that, I see the glass half full yet people on the other site like ACE accuse me for being a ramper, for what? I see the glass half full and there is still everything to play for. If we thought we had no chance with PV why would we drill another hole. We wrote off PLO because we thought it wasn't worth it so if we thought the same with PV we would have written it off too but we are drilling another prospect... Game is on and the derampers that pop up just want to take advantage of sentiment. I continue to be positive on CHP.

And sharesure, you have done a great job with informing us and letting us know infomation which you didn't have to do.

I appreciate your posts and although we are a little dissappointed with the first drill, chin up sir, tommorrow is another day and I do believe we we have all to play for until we drill the second hole, we don't know if the PV block is worthless.

imo we will get an announcement on the new block next week too. good luck to us all.

FG

Of course he's short 24 hours after the RNS, :-)
And when that 4.5m buy is filled on tuesday at 7.25p he'll probably be long again.

prob too late to short after the news, though i would not be a buyer either

I have been a holder of CHP for a long time now and have always read the posts with great interest. Thanks to you all.
Probably now, like the rest of you, I am somewhat numb at the news we received, at the last moment, yesterday.....In my limited experience, too late to take in and consequently, too late to react.
Disappointing for all of us, but probably most of all, Sharesure, after the huge amount of work and research he put into this, I can't believe that some are having a pop at him, just because the first hole is a duster. Even with all the technology in the world, a certain amount of good fortune, still plays an important role in exploration and drilling.
I know there will probably be another drop on Tuesday. Will those wishing to depart be able to get out, without further damage?
However, let's not be too disillusioned by this result, as we know it is not a one trick pony and the acreage available, to future drilling, is substantial.
Securing the contracts for the exploration, was the most important factor and commendable. The rest will follow eventually....
Which takes me on to another topic. The French Connection.
Now, I'm sure he will come back at me in a barrage of wit and Gallic charm, but I have to admit, I quite enjoy his posts, albeit sometimes rather long and difficult to interpret ( probably like this).....but always witty and well informed.
However, I must admit, I find his constant negativeness about certain shares, quite tiresome. However this shouldn't be a reason for discord.

Frenchy Boy....... I would rather take note of your comments and ask you very politely, instead of rubbishing the few topical shares, why not re-channel your superior Knowledge and come up with some positive comments, about a share of your choice....any share.
We are supposed to be here, to make money and most posters try to help each other. Why don't you give it a try?
Lets see if your tips can do any better than other traders. Negativeness doesn't help anyone, but I am sure you have a portfolio, (although never mentioned) and could suggest a few shares worthy of a look.
If you were sincere and positive in your approach, you would soon become a highly respected contributor to this board and a huge help to the smaller investor.
Remember FC.... if you can't help someone,.....then don't hinder them.
Bonne nuit !

Disappointing as it is, just because this first drill is a duster does not mean that other information or predictions about the future of this company are incorrect.

And I think we can leave the readers of the various posts over the past few days to make up their own minds about who is better informed about this company.

You noticed that frenchie did not tell us how many he shorted - nor at what price he sold them for.

I expect he will come back on Tuesday and tell us that he has bought them back and made a big profit - along with some made up prices. He has a habit of exaggerating his claims - just to make himself look good. I domt agree with others - I find his posts quite arrogant and leery - still it takes alsorts. I have now filtered him - because what little sense he sometimes makes is buried by all the rubbish he spouts.

nealo

He doesn't know how many he shorted yet until he finds the matching trade on tuesday.
I am sure he hopes that someone doesn't claim the trade as they did last thursday.

Thanks to those who have posted kind comments. Yesterday was a cold blast, not just for us but the institutions in the last Placing who provided cash for the next block. The directors, too, thought that 12p was a floor for the sp given that they bought shares at that level. As for the massive markdown on the drilling result, it is all the more curious because there was not any perceptible increase prior to drilling. Maybe the t/y/e didn't help plus a number of automatic stop losses probably kicked in, making the selling pressure even greater.Whether the rebound is quick next week might depend on how much pressure City holders put on the company to be speedier with more positive news which I reckon is there barring some minor finishing touches eg escow accounts being set up on the new block?
Where now? Alea is still there and more than supports the current sp in my view.
There is not just another drilling in the near future but also the liklihood of some other significant news eg the new block and poss. something on Alea. If my guess is right on the latter two items then the sp should recover very quicklly; I hope and expect that it does; for those with cash, maybe Cantors or another institution the current sp seems a gift.
Cynic: I will pay in Trotting's cheque to your account. I'm sure you regret winning but at least you can buy some bubbles in time for the next drilling result!
I am not intending to sell just because of one duster; I prefer to wait and see what the new block and Alea news.

Thanks sharesure. As ever, an objective and realistic post.