______

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.

tuttle - what do u mean mate? i cant access the BB on advfn which is really doing my nut in!

robbi - don't worry too much ... it's very quiet there today. smattering of muppets yesterday.

robbie123, try the email link by my name; would be interested to know what you do about the Hardman Report; bits are leaking out.

Robbi - I don't know whether this is the problem but just a suggestion. If you have cleaned up your PC recently, it may have "forgotten" your passwords etc. Have you tried logging in again with your username and password, as if you were a new user? Or instead of going straight to the BB, click on the monitor or homepage, give it a few secs, and then try the BB. Hope it works!

robbi

thought it was quiet over there!

lol yuff! i have just been sent this and am amazed:

Your account has been banned for 24 hours by the abuse team for multiple postings. However on checking your account i can see that yes you have posted the same posts on different threads but i feel there is sufficient argument to have your account unblocked for the moment.

I would however stress that spamming and advertising is not allowed on the site and will be dealt with immediately as was the case here due to the fact the web address is not a approved site.

I will be requesting the access is allowed again



looks like that is what you get for abusing idiots like the great white and blue d! sharesure, havent heard too much recently about the report, just about the placing, will be in touch when i do though mate!

Robbie123, The Hardman Report, possible Placing and the updates are all linked; I am told that the Nomad needs to check these now before they publish.

robbi

outrageous seeing as all they will do is remove great white's posts and aliases not the threads, what a bunch of idiots!

sharesure

wouldn't it be better to announce all those things separately for better effect.
Speaking from the point of view of being a shareholder.

cheers yuff - it is a joke to be fair!

I believe it is the responsibility of the NOMAD to advise on that matter, but i think u may be right, you only have to look at roc oil where multiple RNS's have been released and what it does for the shareprice. but i guess the management will know best...

Could it be cost that is the issue, RNS news i would think fairly costly to prepare
when you consider what brokers charge these days.
One biggie should have a dramatic effect on shareprice but value will out in the end
however long it takes.
My shares are staying in bottom drawer till at least xmas or longer if i like what the
company announces over next few months.
No shorterm little gains for me, been there done that and every time it has cost
me a fortune.

I believe the "listing" charge for an RNS is up to 150. Hopefully this amount is not an issue to CHP !

But it might encourage them to put everything into one RNS.

The advisers no doubt check out the content and wording but even if is not part of their duties covered by their appointment/fee it cant take hours of their time.

News probably tomorrow now!

wish I had a 1 for ever bb where i've seen "news tomorrow"!

Chaco Resources PLC
18 May 2006


18th May 2006

CHACO RESOURCES PLC
('Chaco' or 'the Company')

Placing to raise 4 million


Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused
in South America, announces that it has raised 4m before expenses, through the
Placing ('the Placing') of 26,666,667 new ordinary shares ('Ordinary Shares') at
15 pence per share. The Placing has been effected to fund the Company's latest
commitments in relation to its South American exploration and development
programme and to provide the Company with further working capital.

The Placing is conditional on the new shares being admitted to AIM, admission is
expected to occur on 19 May 2006. The new Ordinary Shares will rank pari passu
in all respects with the existing Ordinary Shares which are currently traded on
AIM. Following admission there will be up to 534,134,554 Ordinary Shares in
issue.

Further details on the Company and its projects are available on the Company's
website

Fairly positive that the placing wasn't priced down by much. Shows some confidence in the companies outlook. (In my opinion)

Strawbs.

This morning's announcement re the Placing is the start of a 'cascade' of newsflow which should follow over the next 14 days; all of this newsflow is anticipated to be very positive and will relate to independent reserve predictions, and possibly the Bohemia block in Paraguay, where the way is now clear for CHP's application to be cleared next - a prior, and overlapping, application which would have caused a problem has apparently been rejected in recent days. This is all slotting into place nicely; as for the volatility in the resources sector generally, I'd rather be investing in oil exploration companies than metals since any slowdown in the global economy (if that happens?) is less likely to affect oil prices while the US seems determined to antagonise many of the major producer countries.

Crush a grape time?

KD.

KD, more like label the bottles time, I think.

Sharesure - the massive shakeout has nothing do with slowdown of global economies ..... it is almost exclusively to do with the bubble in commodity prices, especially that of copper ..... wish i was as good at following my own advice when predicting!