______

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.

without sounding obvious, but TFC, you have your own objectives/agenda which you have openly admitted. Clearly predicting 5p would be beneficial for you as you have a short position. It is much easier to scare investors into selling than to influence their buying position. Not being personal, but i hope you are forced to close your short, not just because i dont particularly like shorters but because it would be benficial for both me and other holders.

p.s do you have some form of keyboard tourettes?? your 'comma' key and @ key is taking a battering :)

TFC .... Jumeirah is one big construction site albeit that there are many deluxe hotels on that strip .... however, whereas it used to take only about 25 minutes to drive into the Old City, it now takes an hour or perhaps more ..... on the other hand, Park Hyatt Creek is also on the waterfront, is very well appointed + golf course, and only about 15 mins from the airport and not much more from the Old City ..... if deluxe hotels are not your bag, then you may want to check out Dubai Marine & Beach Club (pretty sure that's it's name or near enough), which also has a certain charm and is at the city end of Jumeirah

General Von Sharesure / Utter drivel . FILTERED ,,,,Great beliver as i am in the teachings of Zola and Volaire in mans freedom to say/do whatever he so desires so long as he causes no harm to others ,l am not listening to a man who filtered me simply because i didnt agree with his views ,,,,,,,Call me petty,lts not even pride .But this man questioned my very dignity as if i were some poor ill informed wretched unworthy d*** head . l will speak my mind and nothing will stand in my way . Amities Robbi .l have NEVER denied my agenda/ strategy . l merely call it as i see it . I maybe short on CHP and as such belittle it; but oil is my game , and i am convinced of my case . But obversely those PLCs on S/E i am bullish about i wax lyrical about them ...To the point of tediousness,,,,, But its a 2 way thing Robbi .......and like everyone else i can only call it from my vantage point . Not yours .....You may in the fullness of time be correct but as i see it -A short is appropriate at this moment in time ............... lncidentally i did say earliar today i had closed one of my 3 shorts ...@+ J..

As per my post of Monday, out of CHP first thing and topped up PTR.
Got some of my losses back already. PTR looking good.

As i said cut your loses and move on.

ald* .... thoroughly agree

Cynic...I will join you out in CHP tomorrow then...CHP is overhype.

CHP is going to be just fine. watch this space.

The battle of the fattygreeks and the thinnycynics - where's moaningtroll?

98 .... you trusting chappie! ... if you fancy another spiv stock, but prob less of gamble than either CHP, GOO or PCI, have a look at BML - have posted

cynic, frenchie anything positive to say about this share.Please be objective.If shorting is the way to go then so be it but lets have it right eh?

this share isn't going any lower, no matter how many people say 'its going down', 'its the last of CHP' etc, that is rubbish. 1 drill doesn't make or break a company. Even BP hit a dud . We are fully funded, have a proven oil field with another to come, we're still drilling in the Primavera block and we may even have news outside of Colombia.... who knows ;-) We have Paraguay too lol! watch and see.

I know several people who are about to buy on this dip. 1 drill down, several more to come.

For anyone with a short position, as a fellow investor , please close your shorts, mark my words.

thats one positive, anymore?

hmmmmmm ..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,errrrrrrrrrrr ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,NO . ! But an mm loves a balanced book. . And after selling bucketfuls at 11/12p a couple of weeks ago, he has now been sold back stock on a ratio of 6#1 at 6/7p so he MIGHT tommorow add a couple of ticks to attract a buyer or two ...give them the rope to hang themselves ,,,,,,,,,,,,,,,,,,,,,,and then bomb the s/p later in the week ,,,,Unfortunately it is more likely if he added couple of ticks tommorrow sellers would appear from everywhere. Desperate to minumise losses ,,,,,,,,,

i do not say sp will necessarily go lower, but i also do not see the company as a good investment at present ...... it's too easy to keep saying that the next hole must bring results, and if not that, then the one after that ...... look at ELP and EME and VOG for salutary lessons ..... however, just occasionally a minnow hits the jackpot (Cairn) but it is almost impossible to guess which that will be.

I think CHP is not the one hitting the jackpot now

GDP is a better one than BML, cynic.

98 .... you may not be wrong and i would not normally have looked at something like BML, but someone whose judgement is pretty sound and whom i have known for many years suggested BML was a "good idea", so i followed it ...... one such is a sufficiency!

fatgeek its down.and will go to 6p if no statement.

Isn't this what you said a week or so ago Tanker ?

"TANKER - 02 Apr 2007 14:45 - 2898 of 3144
oil loads of it . "

No credibility I am afraid.

You may of course be right - but inane comments like that are not helpful