______

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.

SD ...Although i hate some of your stock picks , l think your English flows like sweet Texas tea . lts succinct, yet abundant in subject matter ; diverse yet avoids going off on tangents like me . On face value it is simply written yet loaded with some of the dryest , sardonic humour with interpolations and inferences second to none .Love your posts . Are you an academic in this field of semantics ? Same with Cynic- right to the jugular lol ...No prisinors taken here ,,lol ........Wish everyone on here wrote like you pair of English ,,,errrrr ,hmmm ,chaps ...Nice one/ Credit where it is due ...@J ..........................Rampage ..lol hmmmm Very good ...hmmm Sharks - very apt / bonne chance mon pote ...

TFC - thank you. An interesting read, certainly. I wonder whether you are on amphetamines.

BWD.. YUK !! Certainly bloody not !! .....l do not indulge in such cheap nasty prols drugges ,,,,,,l dont drink nor even smoke tobbacco , ,,l go to the gym ,circuits and 5 a side ..,,Far from perfect with the same weakness Wordsworth so detested in Coleridges character . ......Off to clubland so ,,,,,,,,B/ Nuit ....Faires attention et sois sages ...,,TA using candlesticks points to utter capitulation . !,,,,,,,,,,,,,,@+ J ,,,,,,,,,,,,,,,,,,,{ abridged }

Stockdog,

Mondays a bank holiday.

Touch- however, if the realisation sinks in on Monday, then I guess we'll see the results in the market on Tuesday!

TFC - Take F*ckloads of Coke!

' J '

You foregot to mention your PET short what was it 140p down to 40p

Roly ...l was juste going to add that one ...but if you remember correctly when i shorted that one i got such shitty threatening abuse, and attempted molestations in my own road ,i thought best to omit and forget it ,,lol.... But what a mullarky that was !!!....dit-il en sourraint ...........SD !! . Au contraire mon ami !! .tu es tort !!! vraiment ! .tres tort ! Thats very wrong. What on earth are you suggesting ? Now steady on ! Comments like that have serious legal and career implications .i shall now retract my compliment. Thats a very serious thing to even suggest let alone say .Not amused at all . ,,aww i have to go ,,,,LES FILLES !!!! damn ,,Gone ...@+ J ,

I think that we will see alot of buying next week as although we had a little dissapointing news, we're still drilling another hole in PV anyday now and alot of people will want to average down, enter in at these prices. 1 duster but all to play for imo. This has given some a perfect opportunity to add or enter into CHP. Until we drill our next hole in the block, we won't know if PV is good or not.

With this and all other news, I say we still have a big chance to turn this around and lots will see this price as a perfect chance to get in.

I'm averaging my stocks next week.

FG
I like your thinking-where is Trotting?

aldwickk, Sorry to disappoint you, but I have never posted on SEO, however someone called oilywag has. The question still remains and is not a stupid one as you suggest, HOW DO YOU CLOSE A SHORT POSITION WITHOUT EVER BUYING THE STOCK AGAIN? I am not picking on anyone just merely comminting on threads as I see fit, as the conversation progresses.

TFC, why do you pretend you are French? ;)

The easiest way to close a short position, without ever buying the stock back again, is to stay short until the company goes bankrupt.....or you do, whichever happens sooner. :-)

Strawbs.

Bo, he's on the other thread

itam,

Why do you think he is pretending, and why should he ?

Strawbs,

Yes, thats right.

Oilyrag, Easy mistake, sorry.

What was the point you wanted to make, asking about closing a short.

By my understanding, taking a short position is when you sell a stock with a view to buying it back cheaper, later. My point was, if TFC was never going to buy CHP again then he couldn't ever close his short. What I believe he was saying is, that he has sold out all his intrest in CHP. That is not the same as shorting. I am sorry if this is getting confusing and I didn't want to sound pedantic, but I was just intrigued by what was said. Hope this explains why I asked.

Rather pedantic but a moot point i guess ....of course i must buy again to make the point of the exercise -making money ... Surely manifestly self evident but perhaps it would have been better had i said i would never go long again ,,,,But with ref. to my posting 2993 i stated quite clearly my job was done and quote .."10p was my target but the spread of 10.25 /10.50 had to suffice ".........and therein lies my first short ....Also i never went short after RNS ,,,,,,,,satisfied ? sheeesh

aldwickk,
His spelling is awful, grammatically it is wrong most of the time, and the meaning (or what I make of it) is pretty random.

But entertaining nevertheless!

Oilyrag,

Ok , understand.

agggghhhh !! Now this is getting utterly irrelevant and absurd and starting to annoy me !!!!! . l am Brive-La-Gaillarde born;and very proud to be so . My French is neither YOUR bog standard O/ A level or worse still -online translated- which is a joke ....l speak colloqial French as spoken as where i am from .lt is ALWAYS gramatically correct !! Unlike English, French syntax makes strict translation very random and in 99% of instances adjectives follow nouns and dont proceed them .As for my spelling. French has many incnsistencies ....EG -- Take the simple word "WHO " ...ln Paris, and in the North , it is "QUI" . but in the south it is KOI; and in the provinces of Alsace and Lorraine it is "WEN or "WER" ,,,Likewise the city of Marseille (s) has 5 different variations and quite strangely is spelt with a "Q" and "U" rather than the "S" and "E" by its inhabitants...-MARQUILLE.............lf truth be known you simply dont understand it and only illustrate your pettiness and ignorance in having a pop at me in a such a personal way . ca pue !..FINI !!! @+ J.