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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.

perhaps "the earth moved" for the pros, or at least so they would have you believe!

so no sensible answers then i guess

sensible answer is, and was a few days ago, to bite the bullet and get out

Mes Amities /Fallout not half as bad as l anticipated .MMs soaking up on 6.25 /6.75 spread ..Perhaps Sayona was quickly drilled as their permit for exploration on this site expires in May . Board changes can only be for the better, as always rememebr when you invest in PURE expos, you are investing in the board, snr management and especially your geologist/s. Good geologists are a very rare breed and seem to have a 6th sense when it comes to mining. Only a mere 2% succeed in taking a prospect into a producing well. Astonishing really ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Also the last board were useless having already totally F***ked up one listed company in looking for gold in Sardinia ..As for CHP i think 99% of us held more than the head bean counter( FD ) . Utterly disgusted. ....For those who think shorting is negative-well it made me 18k ...and going long a mere 5k including the selling of 75% of the remainder of my holding today .....One can but hope for serious holders that Alea proves to be the one .For hope springs eternal .Does it not Cynic ...lol ....Who the F**k am i kidding ? lol But in now holding a mere 25,000 i am unsure as to whether its even worth the hassle .....and YES !!! lndeed Cynic, you are one smooth talking mutha when it comes to responding to ladies postings . lt has not gone unoticed ,,lol hehe .........Lastly there is no room for false modesty or sentiment in this game. Hence why i am such a mercanary shitester . ..Voted for Jean - Marie la Penn in French elections; and moved profits from this "thing" into VML ... .......B/chance a'vous / Faires attention et sois sages ,,,bien amicalment ...@+ J

cynic, don't forget some of us were in lower than this and that going forward with new management, new direction doesn't necessarily mean we're done and dusted.

FTC .... and look what happened to that slime-ball J.M. LePen (and at least i can spell your damn politico's name correctly!) .... he came a bad fourth and totally lacked grace in his concession speech.

which paves the way for another right winger in Nicolas Sarkozy who is not unlike le Pen .....You only neeed look at UK to see how immigration ruins a countries heritage. A tad naive' to expect grace from ANY politician

that's total balderdash! ..... immigration has done nothing but good for both UK and USA and Australia and many other countries including France ..... while there are some who make no contribution to their adopted society, you would be following blind prejudice blindly to deny the beneficial impact made by such immigrant groupings as the Asians, Chinese, Italians, Jews, Poles etc etc.

when a country's economy is suffering, the automatic response is to blame immigrants for stealing jobs or similar, when the truth is all to often that the so-called indigenous population is too proud or too idle to take the jobs etc on offer.

in short, to prosper and grow, countries need the stimulus that new cultures and races bring.

Thats your personal opinion Cynic . And , as such, i respect it .But still utter bollo**s and i strongly disagree. Thats my personel opinion . We are very lucky in that only the suberbs of Paris, Lyons and Marseille have sizeable minorities. France proper,esp the N &S West , would never tolerate it . France is still very tribal and historically divided in itself without adding fuel to the fire. Likewise we will NEVER again see a socialist running the show . They started us on the road to ruination . .l never want to be in a France when no-one speaks the language .lts INSANE !!You ever had the luxury of visiting cities like Bradford or Leeds, Birmingham , Liverpool,or ANy part of East or SE London where no buggere can speak the language ? .Let alone the plethora of smaller towns throughout the ENTIRE UK who jabber away in a language no -one even understands . . Nothing to do with race/creed or whatever like unemployment at all .....lts called Nationalism. France FOR the FRENCH !!!!!!!!! Also immigration is a root cause of exploitation. Juste as UK exploits their cheap labour .

Massive immigation without proper health & crime checks in a short time span into a small island like the UK , with a health service in crises and inner city schools trying to teach English pupils at the same time as teaching non English speaking ones is total madness.

At last !!!! Some simple common sense !!!! Here Here Aldwick . Hey Aldwick ....What do you call 5 white men in a car in Bradford ? lnvaders lol

Strugling to see the link with exploring for oil in South America.

France has always been xenophobic and right wing ..... but don't think we should venture down France's role etc a generation back which i am sorry to say highlighted an underlying national trait.

that UK's health service is a disaster is nothing to do mith immigration ... it is down to political shennanigans and ineptitude .... in fact, without WI immigrants in the 1950s you would have no one doing all those menial jobs (cleaning etc) nor bus conductors etc etc ...... Do I also need to itemise how the Asians, Chinese, Jews etc have benefitted not only the economy of this country but also its cultural richness?

blackdown ... you are 150% right ... sorry to have highjacked this thread in response to TFC support of LePen

is that 3 or only 2 total duds for CHP?
either way, how many are you persistent investors going to allow before you bail out?

Without meaning to sound rude, if you've already bailed out, why do you care what we do ?

you means you care that i care? ...... anyway, because i held for a long time .... far too long, though not as long as some who persist ..... nor do i hold SEO or ZOO or similar!

2 more dusters and the s/p will hit 20p i bet...l dont think Sayona was ever meant to be a productive well as PP suggests ..............But someone knows something for all these seemingly crazies to keep buying ...Or are they ?? . cRAZIES I MEAN .....Or can one of you explain your logic or reasoning in buying what i see as a,,,errr falling knife.Or it a secret ? lncidentally wheres Field Marshall Shareunsure-Mannering ....When the s/p hit sixes he attempted to surrender , but he saw the looks on the Tankers and the Greek Fat ones stern faces he did a runner .Or at his age -more of a sedantry walk ,,,hehehe lol ..................................Actually FG i dont think you did a bad thing in retaing a proportion of your shares as one day you juste dont know ,,,,,,,,,,,Alea could be 3rd time lucky and " bingo " ,,,,@+ j

TFC I am nursing a big loss since the whole PV thing started to go pearshape. Time finally for me to take off my specs. I thought we'd have it right this time but we didn't and the buying today amazes me and I do ask why? maybe something is going on behind the scenes but who knows. A loss is a loss and I don't like it one bit.

I hope for all invested CHP can deliver, the old management who told us bollocks are out and we have a new fresh management with hopefully some good prospects.

William de bro cannot be happy either, I am sure Giles Clark NEEDS to deliver just to keep them sweet, they own 100 mill+ shares. Time for results , the new management has come at a defining moment. If we had the old management we'd be down more but I still feel we have a quality management from shell to bp to GC himself. All is not lost imo. More news to come maybe and I feel so.

FG
More news to come for sure- mgt still can recover the situation.