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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.

What makes you think that some punter on another BB has an inside line on something that is so price-sensitive on a company whose dealings are in South America ....... That is just too silly for words

As I said - it will be interesting to see. There is nothing else of note going on - so a bit of idle speculation will do no harm.

Bodeng, all I know is that there is a real wish to get out the information we have been waiting to see but there is a process that has to be gone through by all AIM stocks, namely that of getting the Nomad to verify and approve what is to be released. In my experience not all Nomads have the breadth of expertise or resources to carry out the requirements stipulated by the LSE in a timely fashion. Whether that is the problem in CHP's case remains to be seen; however I think we can all be certain that when the information releases start coming these will be as good as, or will exceed, what we have been hoping to read - keeping up a tradition which CHP has been establishing in previous RNS's

Thanks Sharesure

In my experience, bad news tends to have a shorter gestation period than good news.

so sharesure it must now be next week.13th.

When ever the news is released its released. No point counting days with a stock like this. I think we all get the feeling news will come sooner or later!!

In a strange way I think the anticipation of news anytime has helped support the sp to a point.
A lot of the smallcap exploration oilies have been hit really hard this week whereas we are still in this trading range at least. Fingers xxd.

I share the view that that it is pointless holding one's breath for an RNS but agree that the prospect of an RNS has helped buoy up the sp. Whether, Tanker, it is next Tuesday I haven't really a firm idea but hope that it comes by then.

........and look - the dow reversed a 175 deficit to end the day UP. Bodes well for tomorrow generally ?

Re today's RNS: Martin Groak's position as a non-exec director remains unchanged, ie he will still be there, even though he has an exec. FD role at Indago which involves being in Dubai for a portion of his time. He has been trying to do two jobs for some time so I think that we will be better off now having a full time FD as well. We really do need the pile of other news which is mounting up. Think their Nomad needs a good push.

Maybe they are just lining up all of their ducks in a row - with this being the first.

The appointment is immediate, Nicola is even fielding the queries on the RNS, so I guess she is already on board.



Chaco Resources PLC
09 June 2006





9 June 2006

CHACO RESOURCES PLC
('Chaco' or 'the Company')
APPOINTMENT OF FINANCE DIRECTOR


Chaco Resources Plc (AIM: CHP) announces the appointment of Nicola Brookes FCA
as Finance Director with immediate effect. The Company is pleased to confirm
that Martin Groak will continue to serve on the Board as Non-Executive Director.

Nicola Brookes, aged 54, qualified as a Chartered Accountant with Arthur
Andersen in 1976 and since then has had considerable financial experience in
both the private and public sectors. Ms Brookes' previous appointment was as
Finance Director of Vitesse Media plc, an AIM listed company. She resigned in
October 2005.

Ms Brookes does not hold any Shares in the Company.

Save for the information disclosed above there is no other information required
to be disclosed under Schedule two, paragraph (g) of the AIM Rules.

Shame about Martin Groak as from what I can make out he was always professional and approachable but at least it was a workload thing rather than a problem in the ranks thing and the new FD can give it her full attention.

Sharesure, any more whispers on additional areas?

dibbles, Martin Groak hasn't gone anywhere; he's still there but instead of doing two jobs, he now has a full time FD doing the day job with him still as non-exec. Having just raised what will probably be the last bit of cash required via a placing before they actually start relying on oil revenues you could argue that he has done all the demanding part for the timebeing.
As for additional areas there is a rumour going round that they are hopeful of getting another oily Colombian block but whether that is also preventing newsflow because it might be commercially sensitive I cannot find out. CHP have always said that they would not stop at 3 blocks and you could say that it is smart to grab as many as you can before there are more big finds and the rest of the oil world catches on. I would still prefer to see some updates on the existing areas to set us at a new sp level.

Price still dropping but on low volumes.

Bound to be a little boredom that news has been delayed because of new AIM Nomad rules. What is announced I am sure that the underlying story will then turn out to be better; the Nomad's intervention might prevent us getting as much as the institutions were told in terms of the potential which convinced them to go for the Placing (apparently well over subscribed ), what comes out will be free of 'puff' and therefore all the more reliable for it and likely as not will prove conservative as the announcements are subsequently backed up by work on location.

On another BB a poster by the name of 'superdealer' is saying that the delay in news is a bad sign. I have very good reasons to believe that that is the opposite of the reality. I have posed him the following question:

A question for 'superdealer're#5577 : which news do you think would be harder to issue under the new AIM guidelines? -
a) The mgt. previously thought that one of its blocks contained x barrels of oil. It now doesn't think that there is any there at all.
or,
b) The mgt. previously thought that one of its blocks contained x barrels of oil. It now believes that it contains between 8x and 10x barrels of oil.

Couple that with a recent Placing at 15p where in this 'nanny state' we are regressing into a situation where private investors will get less news than institutions because they cannot be trusted to sift puff from truth.

I don't wish to be accused of ramping or 'stealing CHP's mgt.'s thunder but I think you can figure out the answer to that question. If ever there was an example of 'bad news always travels fast' I think that this will demonstrate that the converse is also true.

Posters like superdealer don't concern me, you can see through them right away...
I can't pretend that the current trend in the markets does'nt concern me though!!!
No doubt the good will come through in the end but if investors start turning to cash it could get messy in the meantime.

Agree Dibbles - the market now testing investors' mettle. This reminds me of 1998 and hoping the outcome is the same. The institutions are there to get in as the private investors get out. We've been here many a time before - just not for a while. Meanwhile some good news from CHP would be welcome....soon!

Inflation up again today mainly due to higher energy costs...
Looks like this won't be over any time soon..