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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.

the party has started!

fg, looks like you can carry on posting, oh sorry that's the other board ;)

start partying when you have something to party about .... until then, just keep to the orange squash and similar; fizzy drinks will make you hyper!

lol!

our soon will we no results,

English your second language Tanker?

No risk no venture... I'd rather be in for the money than sat on the sides.... Oh and the "just might" is represented in a big way in the sp, mind you some here are too tight to see it!!

GED finished 35% up today,

SS do you know if the sands that GED targetted are the same sands we are now targetting. My idea of it all is that we both targetted the same formation first time and hit duds and the second time we have/are both targeting the sands of the Carbornera formation. your views would be appriciated.

l have to force myself now cynic to realise i am 200,000 long on this stock .All profit from shorting it , so whatever the outcome i dont give a flying f***...,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,No thats NOT at all true . OF course i care, but love winding you lot up. Still remain unconvinced and rather vulnerable despite only having a relatively small holding ( in fiscal terms )@7p . ,,,,,..............................,,,,,,,,,,,,,,,,,,,,,............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................,,Now-,,,,The positives -.Nice volume / some nice buys- a ratio of 3~1 to the bulls / and board changes which can only be a VAST improvement as you would be hard pressed to find a more vaccillitating ,weak ,and utterly useless and uninformed bunch than the last lot of self serving brainless cretins .... Yet sweet FA in way of real momentum ..............................................................................................................................................................................................................................................................................................................................................................................................l l expected a little more.Now while no candlestick in isolation is very reliable, todays white Marabozu is at least bullish and whilst in my opinion its reliability is questionable on its own , the last time one appeared in a very similar 5 day sequence to the current situ , CHP shot up like a rocket !!!! So again, and taken in sequence with preceeding c/s over 5 days , it could suggest a change in the past bearish trend as if a bullish engulfing pattern is in the making . .At the VERY least todays (tuesday) c/s illustates HEAVY buying ALL DAY long. Tommorows trading will tell us a great deal more . ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,As ............................As Now as for its chart -again as with c/s i am employing VERY short term set of variables . Now what is nice here is that the 10 day ema is holding firm with current s/p almost hugging it . Should CHP gain a mere tick the two would converge in a vertical manner which would change things a tad for the good. . l like that . But massive resistance and selling pressure emerges at about 9 and 9.5 .Big, but by no means insurmountable. But then comes Mount Everest @ 11p 12p and a good bloody larruping at 13p ( strictly shorting territory BEEEGTIME !!! } ,................................................................................................................................................................................................................................................................................................................................" lts those bloody shorters again ya know mother !! !!! lol... Bloody immoral shitesters , Believe me mother those buggers will bleed us dry...Aye bleed us dry ..Have us all in the workhouse or worse." lol .So sayeth SD taking the moral high ground ( or so he imagines ) ......ln saying that your average hard working "part time" joe punter usually responds to news the following day. But its imperative buying volume be maintained !! Longer term the chart is a disaster area UNLESS oil is found ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, GEDs discovery may feed mkt sentiment reg CHP and ultimately attract those investors who feel they missed the boat with them so hitch up their wagon to ours . But thats very fleeting and temporary . So lets not overplay this hand . ls GEDS discovery a REAL indicator of much consequence to all of us aboard this here ship ?? . Dont forget:The old chestnut EEN slaved for several years in this very area without even a hint of hydrocarbon . . Not unhappy in @ 7 but would hate to be holding much higher ... Hoping to be lucky enough to sell on rumour before news of drilling. BUT only, and i reiterate , only to release monies for other projects.

yawn oh Fat Greek one. l notice from a number of boards you are ramping this to the skies ....Are you that overweight ?

Look at the bid jump 0.5 ....out of the blue . Looking good ! mms looking to either balance books by tempting PIs to part with a few shares,,,,,or perhaps ,,oh who knows ...but buying pressure far exceeds that of selling

Hi TFC not ramping, just enthusiastic about what I see as a change in sentiment and SP for the better. Well analysed post by yourself also.

how on earth can you equate a change in sp from "nothing" to "fractional" as a change in sentiment? ..... get real!

take a look now

oh golly gosh! ..... time to get excited when CHP actually find something commercial ...... for salutary lessons take a look at the history of the likes of EME or ELP or SEY or VOG and plenty similar

Fatgreek,do not loose sight of the fact we have a VERY long way to go just to get back to 12,never mind the recent high of 14,sentiment has not and will not change unless we get to 12p without any good news,any rise from 12 would be a change in sentiment in my opinion of course,the sp took a severe bashing on last RNS which puts into question of what was priced in at the previous level of the sp.

i hope you are right in what you say and i am of course optimistic but not convinced just yet.

GOOD LUCK.

RNS just been issued.

Rns nothing to get excited about.

Chaco Resources PLC
18 April 2007

18th April 2007


Chaco Resources plc


Director's Interests


Further to the announcement made on 17th April 2007, the Company has been
notified that Mr John Nicholas Harrison, Finance Director of the Company, is the
beneficial owner of 100,000 ordinary shares of 0.1p each representing
approximately 0.02 per cent. of the issued share capital of the Company.


In addition, the Company wants to clarify that Mr Harrison has been in the
previous five years Company Secretary and not a Director of Powerchannel
Limited.


For further information:
David Seal/Jerry Keen, Blue Oar Securities Plc*, Tel: 020 7448 4400
Billy Clegg, Financial Dynamics, Tel: 020 7831 3113
* Blue Oar Securities was formerly Corporate Synergy Plc and acts as Nominated
Adviser & Broker for the Company

This information is provided by RNS
The company news service from the London Stock Exchange

1 million buy at the end