______

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.

And tell me TFC when did you make that magic long purchase at 7p the offer?

NML - catastrophe, I was wrong as I was on SEO. I hope I've learned enough not to embarrass myself as much again. Thanks for the len, Froggie.

PS - I don't have a side to field against you. I signed a non-compete at Verdun - lol!

Stockdog,

Your embarrassing yourself again.

That's a very interesting question sd re entry levels / TA buy indicators, I didn't get an answer to a similar enquiry on the SER thread ;)

PT ..Sincerest apologies PT.But unfortunately the SER thread is one l very rarely even visit/ contribute and must have missed the question you posed .l rarely duck any serious question and thus will scroll back and give your enquirry my undivided attention . Jsuis desole'de ne pas vous avoir repondu plus vite . @+ J ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,S/D .Now S/D..REG NML .lndeed you made a poor call - vous vous trompez - but it is somewhat of a misnomer to even suggest you embarrased yourself.That is utter nonsense. But with all due respects that was not the point i was making at all. . l was merely trying to illustrate that via derivative shorting you can short any share irrelevent of its m/c...A variable, that at the time , seemed utterly lost on the majority of NML s/holders.And one which led to my initial vilification yet my ultimate justification as bourne out by my shorting it having added a nice addition $$$ to my coffers. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.......... S/ D the remainder of your posting is remarkably inane and banal . "Froggie" , for example_oh how original !! Thats a sign of desperation !!! Verdun > A remark one l would not have expected from an educated man such as yourself. Remarks that leave me debating whether you suffer from lapses of a condition called "petite mal ". Petty silly remarks that tempt me to tell of a mere French Duc who with friends, and a mercanary army, took over this country and formed the Angevin and Plantagent dynasties . Even the King you refer to as Stephen was utter tosh . His real name was Louis ........................................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..........................................................................................................................Henry Henry Ford was right; History is BUNK !!!................................................................................................................................................................................................................................................................................................................................................................................................................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.................... Now at the risk of repitition . l closed all 3 of my "shorts" on CHP on 11th / 12th of April having already turned my anticipated but as yet uncrystalised profit into a "long" on the 10th with 4 tranches ( all within NMS so as to avoid a premium] but nevertheless totalling 200,000 when intraday trading stood at a mid of 7p most of that day ,,but if you scrutinize that particular days l/D chart wiith attention paid to the tail or shadow it illustrates quite patently that very temporarily that certain mms shaved the spread to a 6.5-6.75 / 7p . Even the following day the mms were bidding on a 6.75/ 7.25 spread ..All pretty simple enough ......But you were correct about one thing. .............You could never field aside of 7 against my 11 ,,,,,,anywhere or anytime ,,,,,You simply dont utiilize financial instruments designed to maximise gains or minimise losses You merely buy long and hope ! ,,,,Have a look at shorting or CFD s ( an instrument which accounts for over 65% of all trades .......Buying the underlying fundemental stock is HISTORY !!!!!!!!!!i,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,OT / . Talking of History . lts all bunk ,l guess, but in modern terms akin to France playing England at football without a defensive back 4 ....Do remind me what was the score when France met England on the past 3 occassions and that was 11 v. 11. ...,,,Also remind me when an ENGLISH manager EVER guided a Premiership side to glory to win the championship or any Europeon glory . The answer -- NEVER .....lol ,,,All were French , Scottish , Portuguese, or Spannish Aggghhhh Tu anglais !!!

Not having a dig but what are your views on Nelson and the Duke of Wellington. You have to respect Nelson, after all he beat the french with one eye shut and an arm tied behind his back.

Good point TFC, don't forget edward III and black prince, however I know you will mention Joan of Arc too, so we all have winners and all have losers. Us Brits are made up of several different nations anyway with a bit of Gengist Chan thrown in for good measure, like it or lump it the English, French and Germans are all fromn fairly similair stock anyway so why worry.

Anyway back to sport, we can be proud of our ummmmmmmmmmmmm cycling team, only sport worth watching LOL

.......lol.....lol hehehe ,,,,Very good Oily one !! But what about a a young lady from Arc who humiliated the English at Orleans and led a mere 10,000 troops which liberated Orleans ,Bois , Rheims and ulimately led to the expulsion of Suffolk and Bedfords forces from 99.9% of FRANCE leaving you with the small garrison of cal. SO YOU COULD ALL SLIP OUT IN DISGRACE . ......OR as in the 20 odd year war it took the troops of SEVEN countries with a combined force of 400,000 to defeat the French . As your beloved Sir Arthur Wolesely ( Welligton }, who with a combined force that outnumbered the French { After the Russian winter decimated our forces by 4~1 }, remarked after Waterloo, that the battle had been " a damned close run thing- too damned close " ......lncidentally from bonus' from work i bought a small house in a village in Cheshire called Heswall which looks down on the very river Dee that Nelson sailed up to Parkgate to meet his lover , Lady Hamilton .....

Hi Steveo ...You anticipated that with a perception i admire . Had Henry V of England not died so tragically young we both may hsve shared the same monarchy . But never forget we installed a dynasty of gallic blood upon England for almost 350 years where French was the official court and legal language You think we should return to the subject at hand namrly CHP ...lol bien amicalment / Faires attention .........@+ J

Anyone like to give me odds on TFC opening a long position if Sayona produces opil or a short if its a duster, I think it's 4/6 on that after the event he will have placed the correct position before the event.
It's 66/1 that he will announce his position before the RNS.
Of couse if he does the trades won't show up on the 66/1 shot.

All down to a wild line in imaginotion (sic) and a vichyous (sic) sense of moral superiority, perhaps

Moral superiority ? .Now thats a dashing irony considering my chequered past. But morelike a far superior trader in this deliciously creul game full of smokescreens, deceptions,false agendas and cronyism coupled with basic duplicity and manipilation. .............ln addition SD it was your good self who opted to take the moral high ground in berating my use of shorting as a legitimate economic tool . So get your facts right !......................l urge both you and muff to stick to your day jobs and leave this trading/ investing to people who are well versed in the nuances of market dynamics/mechanics Finally there is only one man on this MAM who knows ,and can verify positions i open, before i declare them publically . Unlike the Earl of Warwick at Barnet , i rarely let clumsy cannonfire reveal my logistics, as he did whilst engulfed in a battle for the crown of England with Edward - who later became the decadent lewd Edward 1V.............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................,,,, l invest 80% in VALUE stock. But as a bit of fun i enjoy alternately going both long and short on microcaps where due to heavy leverage the gains are totally disproportionate on a % basis .....l merely take my lead from mms/ futures/options and sentiment ...............Take CHP as an example ..Currently ( !! ), l look to be ideally long at pre 7p and short at 9's. But the best joke is Sayona being a gusher or even a 50/100bbls p/d well ................but even if the latter be the case i will go long . lf its a duster ill shoot this stock out of the sky and perhaps collect at 3/4p ....................................................@+ J ...Now im off to my favourite watering holes and off to china whites .....Tchin Tchin lol. .............................................................................................................................................................................................................................................................................................................................................................lncidentally due to my origins i am painfully aware my English spelling and basic grammar are far from perfect. Sort of on a parity with your trading history SD ,,,,,But wheras i have an excuse , you dont you smug muppet ...

TFC - you're so predictable. A quick wind up of your handle and you happily crackle away for hours like an old gramaphone, full of hiss and scratch as the needle hits your groove. Chill.

BTW I never trade, don't know how.

EDIT: not quite true. I've made a modest attempt at spreadbetting and, as you so rightly say, I need more practice. It's a lot trickier than you make it look.

SD

TFC always tells us what he will do before the event but not what trades until after the event, hindsight is a wonderful thing and if we all had it we wouldn't be here posting anal BS about what we are going to and not going to do.
Now let me see what will most people do if sayona is a duster, doh........ and what will most people do if it is a gusher doh! doh ! and what will TFC do with hindsight.

Trouble is when you lie about your trades you get caught out as he did recently!!!!!!!!!!!!!!!!!

All of us would be in profit if we could choose our trades after the event LOL........

I can see why people are using cfd s or spread betting on a stock like this , what a waste of time.

Surely those types of tools are for quality stocks, large caps, top 100, 350 or what ever.

People do like to gamble.

From experience the people who make the most money are the people who trade the least.

Did you mean CAN'T

New boy,

Your wrong, Simon Cawkwell [ EK ] makes his money using Spread bets to short shares like CHP and SEO . Large caps are over analysed by the big institutions for the small private invester to make money from.

yuff, think you have hit the nail right on the head! I'm going to start using hindsight in all of my trades, that way I always pick the bottom, sell at the top and never make a loss, can't fail. Got me Porsche on order as I type ;)

pth

PT ../.. You need a driving license to drive a car: and lessons prior to that .. l always think first time drivers of porsches at your age look a little silly Also if you are blissfully unaware of the relavence of 10 and 50 day EMA clashing in a vertical manner u shouldnt even be trading ,,,,ln addition is it that difficult for you to see that as things currently stand the nadir of CHP is 6. 25,{ TFC is long on a 1/10th of a point derivatives} and culminates at 9.125/ 9.25 ,,..{TFC is short }...Satisfied .,,,,,???? ,,and until new news is made known via RNS, or prematurely leaked ,to buddies ,it will stay within those parameters ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,N/B ,,,,,,,New N/B / utter tosh, and a question Aldwick has more than capably answered .Furthermore those who make the most money spend years to learn from the best ..and hence know most of the tricks to allow them to trade with uttermost confidence.................{..experientia docet .........}......................Muff - Less said the better lol...............................................................................................................................................................................................................................................................................................................................SD..verbum........S/D .....S/D !.......S/D !S/D... Verbum sat sapienti. Videlicet..Satis verborum in toto /ex gratia...........,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..........................................................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..................qui s'excuse s'accuse ....................c'est assez m/nt . Fin de sujet i.!!.......< < en brevite' >>.......enough is enough .. ...............@+ J....

pth was originally referring to your comments on the SER thread, so quite what you are waffling on about in your last post I have no idea. Unfortunately you seem to have lost the plot, however, I do suggest that you patent the 'Hindsight' method of trading, it is clearly a winner and will prove rather popular with those who have a tendancy to follow and hero-worship.

pth

oops

Chaco Resources PLC
23 April 2007

23rd April 2007

Chaco Resources plc ('Chaco' or 'the Company')

Sayona #1 drilling result

Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused
on South America, announces that drilling of the Sayona-1 well in the Primavera
block in the Llanos Basin of Colombia has been completed. The well, which was
operated by Gran Tierra Energy, was drilled to 3,460ft into the basal sands. It
did not encounter commercial quantities of hydrocarbons and will be plugged and
abandoned. Chaco Resources had a 55% interest in the well.

The drilling rig will be demobilized once abandonment operations are completed.
The two drilled structures appeared to have valid structural closure and the
lack of commercial hydrocarbons could therefore be due to an insufficient source
charge or hydrodynamic flushing of the reservoirs by formation water. Further
study is required before any firm conclusions can be reached.

The current exploration phase terminates in May 2007. The Company is integrating
the well data into the geological model in order to evaluate the future
exploration potential of the block.

Competent person: Technical information in this announcement has been reviewed
by Dr John Wardle Ph.D., the Company's Chief Executive. Dr Wardle has 23 years
experience in the industry, having worked for BP, Britoil, Emerald Energy and
Pebercan, and is a trained drilling engineer.