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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.

shankly - alfred is away at present.

Apologies for being off-thread but I am looking for an 'online auction house' type company, all I know is that it sells machinery via it's auction house, does anyone have any idea. Many thanks.
2517

EBAY

Where is Sharesure and doesn't the heading deserve an update after 3 months?

Thanks aldwickk, I should have said it's a small co listed on AIM, the next EBAY if you like.
2517

I knew what you ment, i was just joking, LOL

2517George, I'm trying to pin that one down too! If you find out, suggest put EPIC on the Drivers Tips or Top Aim Picks for 2007 Threads. Many thanks. :-)

silvermede, I recall it had a mention in a past Shares mag, I'm searching through back issues for it.
2517

also uncle Tom Bulford tipped it iin his red hot penny shares rag.......but its our secret hehe ,,,,,Dont rely on others to do your work !! Do it yourself - thats half the fun !! ,,,But to illustrate my gallic charm and generosity it was 19p when i bought it last week,,@+ J...............As for the Field marshall ShareUnsure -Mannering ? He is in hiding from the greek fat one

Hola amigos

My amigos tell me some very juicy news is coming. Expect a good surprise with mucho rise amigos!

Hasta la vista

errrrrr deja-vu maaaaaaaaaan. AS much as l love surprises is there any chance your amigos spoiling it for once; and telling us of this juicy news ?

I say, this bulletin board is getting very cosmopolitan!

can't have that! ..... ban all foreigners especially the frogs! (lol)

Never fear ShareSure is here.

Madona santa,lo spero,Pablo,lo spero.

Cynic .. Now behave ! .You small lslander hehe ..You must know this true story with your wealth of ,,errr knowledge . During the Napoleonic wars we French were portrayed in various publications and posters as utter monsters .Seriously. Morelike freaks of some grotesque yet undiscovered family of creatures ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Now as fate would have it, it juste so happened a huge chimpanzee had in the meantime escaped from the rather eccentric, yet esoteric, Duc of Clevelands estate who personally searches the night with over 60 retainers for his beloved chimp; until he is informed that the rather simple inhabitants of a place called Hartlepool have hung the poor creature believing it to a mute French spy ........................................Needless to say i have never visited Hartlepool ...hehe ..lol @+ J ,,PS . Aldwick .You do know that it is Field Marshall "Dell Boy " Shareunsure- Mannering now lol

l dont understand this CHP mullarky . Half decent sized sells of 500,000 are showing yet there is a load of crazies buying amounts which any of my 3 younger sisters spend more on cosmetics ect ect .....Do buyers imagine they are buying a bargain ?,,,lnstitutions in at 15p , and again at 11p will be overjoyed .Probably explaining board changes ..CF must have hedged that position they took. Surely . The very same people who say Alea underpins an s/p of 6p are delluding themselves . They said the same bullshit about Prim At the same time, i dont believe, the wildcatter Sayona was EVER expected to be a productive well . l am convinced CHP drilled it simply because their operators were under contract and being paid regardless, and because the license expired in May ..................................But to buy now seems silly ..lt will be a while before new drilling starts and in that time mms could justifiably take this to 2p as Hyloe astutely points out........ ln saying that i dont get the "gut" instinct to short it ,,,,,,,,YET.................... hehe ....@+ J

This Chaco thread is becoming more of a chatline...like it is going to the dogs

Nope just the French

2517GEORGE - it's Go Industry GOI, if you're wanting to know the name of the co on the enclosed RHPSG flier.