______

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.

Chaco Resources PLC
07 August 2006





7 August 2006


AIM: CHP

CHACO RESOURCES PLC

('Chaco' or 'the Company')
Results for the Year ended 31 March 2006


Chaco Resources PLC announces audited results for the year ended 31 March 2006.



Highlights of the year

Company's Paraguayan subsidiary, Amerisur SA, awarded hydrocarbon
exploration and exploitation concessions in Curupayty and San Pedro

Farm-in agreement signed with Repsol Exploracion Colombia SA and
Ecopetrol S.A. (Chaco: 25% working interest) over Platanillo block - with
undeveloped oil field in the Putumayo Basin, Colombia

Placing of 84,680,667 New Ordinary Shares, at 6 pence per Ordinary
Share, raises 5.05m gross to fund commitments under the Platanillo deal

Joint Venture between Chaco (54%), Expet SA and Consultoria Colombiana
SA awarded Puerto Lopez Oeste exploration and production block in the Llanos
Basin, Colombia

Placing of 13,636,364 New Ordinary Shares, at 11 pence per Ordinary
Share, raises 1.5 million gross, to satisfy demand from institutional investors

Joint Venture between Chaco (55%), Expet S.A. and Argosy Energy
International awarded Primavera exploration and production block in Llanos
Basin, Columbia

Loss per share down 33% to 0.18p per Ordinary Share (y/e 31 March 2005:
0.27p)

Cash balance at year end in excess of 5 million

All current programmes are fully funded



Post-Year End Events

Placing of 26.666,667 New Ordinary Shares, at 15 pence per Ordinary
Share, raises 4 million gross, to fund working capital and commitments under
Primavera deal

Appointment of Nicola Brookes as Finance Director



Jon Pither, Chairman of Chaco Resources, said: 'The Company has succeeded in
refocusing on oil and gas at a time when the oil price is close to an all-time
high. Our involvement in Colombia, one of the most business friendly countries
in South America is part of a rapid acceleration of exploration in that country,
with involvement from majors such as BP and Occidental. We continue to seek
further opportunities and, with excellent local links and strong working
relationships we are well placed to assess these. The Company has a busy
drilling schedule planned in Colombia, and is making solid progress on early
work in Paraguay. We remain optimistic about the potential success of the
Company and look forward to the coming year'



Further details on the Company and its projects are available on the Company's
website:
www.chacoplc.com




For further information contact:



Nicola Brookes, Finance Director
Chaco Resources plc
Tel: 01494 431195



Marc Young
Daniel Stewart & Company plc
Tel No: 0207 776 6550



Simon Robinson / Ana Ribeiro
Parkgreen Communications
Tel: 020 7493 3713





* * * * *

Chairman's Statement



Your Company continues to make solid progress with its plans to become an oil
and gas producer, targeting some very promising oil and gas prospects in South
America and establishing itself as a serious oil exploration company in the
process.



Details of the work programme are contained in the Business Review within the
forthcoming Annual Report, although it should be regarded as an update on work
in progress. Since our year end of 31 March 2006 much has been achieved.



The most important achievement is that we are delivering on our promise of
re-focusing the business on oil and gas at a time when the world oil price is
close to an all-time high. Needless to say, if we were embarking on this course
today, the cost of entry would be considerably higher, and the opportunities we
have been able to seize would probably not be available on the same attractive
terms.



The acquisition of well located exploration blocks in Colombia, a world-class
oil country, and in Paraguay, a potentially hydrocarbon-rich country, have been
our first critical steps forward. In Colombia we now have interests in three
blocks, thanks largely to a strategic joint venture formed with the
Colombian-based consultancy, Expet S.A. This relationship has given us
all-important exposure to eyes and ears on the ground: local knowledge that lies
at the heart of most successful businesses. In Paraguay, where we have a very
resourceful regional office, the exploration programme is advancing although is
still at an early stage. We plan to introduce farm-in partners for the
second-phase of work. The recent news that Petrobas plan to explore in the Chaco
region of northern Paraguay is, of course, a significant development with
respect to the possibility of finding hydrocarbons in the region.



In Colombia, we expect to be drilling later in calendar year 2006 on the
Platanillo Block in which we are earning a 25% interest . A worldwide shortage
of drilling rigs has impacted exploration to date. However, the delays we have
endured are easing and drill rigs are now becoming available. This block
contains the Alea well, which flowed 533 barrels of oil a day in 1988, and based
on which there is every reason to be optimistic that an oilfield of considerable
significance to the Company can be expected.



In the Puerto Lopez Oeste Block, in which we are earning a 54% interest,
re-processing of seismic data started in the final days of the year under
review. Initial feedback from the technical analysis indicates the presence of a
Mirador fault play lead. More work is required but this is a very positive
development, as the area is known for its fault plays; the nearest being the
Apiay Field located about 80 kilometres west of Puerto Lopez, containing an
estimated 100 million barrels of oil. In the autumn the shooting of a minimum of
100 kilometres of fresh two-dimensional seismic is scheduled to further advance
our plans to drill this block.



The Primavera Block, in which we will earn a 55% interest, was acquired after
the year end and features a series of undrilled leads and structures that had
previously been mapped. Drilling close to this block has revealed a number of
oil shows, but most early wells do not appear to have been drilled within
structural closure. It is expected that two targets will be selected for
drilling late in 2006.



Commencement of drilling will mark a milestone for the Company, with at least
four wells planned for our blocks in Colombia before the end of the current
financial year. It is significant to note that this work is part of a rapid
acceleration of oil exploration in Colombia, one of the most business-friendly
countries in South America. Many of the world's major oil companies, including
British Petroleum and Occidental, are active there.



Management continues to look for opportunities to expand the asset base and,
given our excellent local partners, and a good working relationship with
government agencies, we can look forward to this objective being achieved.



Much of the success of the past year must be attributed to the small, but
excellent, management team assembled in the Company. On behalf of the Board I
extend thanks for their work.



During the year we said farewell to two Directors. Tom Elder, our deputy
chairman, stepped down after many years of service, as did Lee Graber. To both I
offer heartfelt thanks for their work. Since 31 March 2006 we have appointed
Nicola Brookes who takes on the role of Finance Director. We are very pleased
that Martin Groak continues to serve on the Board as a Non-Executive Director:
he has given many years of excellent service to the Company and his continued
input and knowledge is invaluable.



As a final observation it is worth looking back, however briefly, on how the
Company has evolved. It is now poised for its most significant development with
the commencement of a busy drilling schedule in Colombia, advancement of the
early work in Paraguay, and a continued search for additional opportunities. The
year ahead should be an interesting one.







Jon Pither
Chairman










CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2006


12 months 12 months
to 31 March 2006 to 31 March 2005
000 000


Turnover - -

Administrative expenses (939) (672)

Operating loss: (939) (672)

Exceptional item - write off of debtor from former
Group undertaking
- (318)

Net interest receivable and similar income 128 19

Loss on ordinary activities before taxation (811) (971)

Tax on loss on ordinary activities - -

Loss for the financial year (811) (971)

Dividends - -

Retained loss attributable to shareholders (811) (971)




Loss per share - basic (0.18)p (0.27)p
Loss per share - fully diluted (0.18)p (0.27)p


BALANCE SHEETS AS AT 31 MARCH 2006

Group Group
31 March 2006 31 March 2005
000 000


FIXED ASSETS
Intangible assets 739 651
Tangible assets 3 2
Investments 604 -
1,346 653


CURRENT ASSETS
Debtors 22 58
Cash at bank and in hand 5,565 642
5,587 700

Creditors: amounts falling due within one year (140) (49)

NET CURRENT ASSETS 5,447 651

TOTAL ASSETS LESS CURRENT LIABILITIES 6,793 1,304



CAPITAL AND RESERVES
Called up share capital 507 390

Shares to be issued 167 500
Other reserves 7,891 1,375
Profit and loss account (1,772) (961)
Total Equity Shareholders' Funds 6,793 1,304









STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2006


31 March 31 March
2006 2005
000 000


NET CASH OUTFLOW FROM OPERATING ACTIVITIES (780) (703)

RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received and similar income 128 19

TAXATION - -

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT
Purchase of tangible fixed assets (1) (2)
Purchase of intangible fixed assets (47) (85)
Acquisition of investments (604) -
NET CASH OUTFLOW FROM CAPITAL EXPENDITURE
AND FINANCIAL INVESTMENT (652) (87)

ACQUISITIONS
Net cash from purchase of subsidiary undertaking - 10
Professional costs incurred in purchase of subsidiary undertaking - (89)
NET CASH OUTFLOW FROM ACQUISITIONS - (79)

NET CASH OUTFLOW BEFORE FINANCING (1,304) (850)

FINANCING
Issue of shares 6,581 1,540
Expenses and commission paid in connection with share issues (354) (49)
NET CASH INFLOW FROM FINANCING 6,227 1,491

INCREASE IN CASH 4,923 641


Notes

1. This statement has been prepared using accounting policies and
presentation consistent with those applied in the preparation of the statutory
accounts of the Company.


2. The summary accounts set out above do not constitute statutory accounts
as defined by Section 240 of the UK Companies Act 1985. The summarised balance
sheet at 31 March 2006, the summarised consolidated profit and loss account and
the summarised consolidated cash flow statement for the year then ended have
been extracted from the company's statutory accounts for the year to 31 March
2006 upon which the auditors' opinion is unqualified. The statutory accounts for
the year ended 31 March 2006 were approved by the directors on 7 August 2006,
but have not yet been delivered to the Registrar of Companies.



3. The annual report and accounts for the year ended 31 March 2006 will be
sent by post to all registered shareholders by 7 September 2006. Additional
copies will be available thereafter from W.I. Link, Hook Rise South, Surbiton,
KT6 7LD, UK.

Tel +44 (0) 20 8974 0255. Alternatively, the document may be viewed on, or
downloaded from, the Company's website, also from 7 September 2006:

www.chacoplc.com



This information is provided by RNS
The company news service from the London Stock Exchange

good stuff- 5m in the bank and enough to fund all projects!.

and solid progress on early work in Paraguay

The only mild negative is
"A worldwide shortage of drilling rigs has impacted exploration to date. However, the delays we have endured are easing and drill rigs are now becoming available."
Could this prevent them completing their planned 4 wells in 2006?

Otherwise agree with lizard - good stuff.

sd

Apparently the hope is to drill rather sooner than the end of the 4th quarter; may hear more on this soon + how Petrobras are progressing in Paraguay.

they can have goo's on loan just finished drilling XXI Peru positive update but no reaction in mkt?.

lizard, I make 5m+ at y/e + 4m raised subsequently = 9m+ in the bank.

That is about 1 3/4p per share.

Add to Hardmans 10.6p to 17p for the known oil in Colombia and their "conservative" range for the SP should be 12.5p to 18.75p.

Despite recent rises the current SP is still below the range, without anything for upside potential.

chaco dosent usually raise funds unless its got a field in mind,i wonder what their going to do with 9mil.

trott
Is not a lot of this cash earmarked/deposited for drilling?
I recall before being granted the last license they had to demonstrate sufficient cash to conduct the exploration. Presumably they have had to do this for each license. This is why they say the exploration is fully funded.

Yep, that was my reading of it, funds in place for seismic, drilling etc. per block.

Having said that, I suppose it is possible that the 4m raised in May is for future blocks as everything else was already in place for the other blocks prior to that.

MPH if your round we have someone over on your adfvn board impersonating trotting12 he has altered the last two digits to be "l2".

Cheers.

Oracles, the impersonator is being sorted by MPH; he's having internet problems at the moment but will deal with him.
The more you read yesterday's RNS the more pointers there seem to be in it. Does anyone have any Petrobras contacts? If so please email me.

Trotting may line up more buyers today.

What's the interest with Petrobas?
Just possible partners in Paraguay or more?

dibbles, It's both. Petrobras has the reputation for getting on with things once they announce their intentions (which they have) and also the financial and practical resources to see their plans through. They are known to have approached CHP some while ago about getting involved in Paraguay and once the third block is announced, one way or the other, then it would be likely that a JV discussion could follow. The 3rd block decision in Paraguay has been expected at any time for a few weeks now; maybe summer recesses etc or just South American politics moves less fast than we would all like - but it has to beat having Prescott in charge - at least they haven't got that!

but then again, noone deserves to have that buffoon in charge.....

A little bit of Director buying - that's what I like to see!

This should be just a start; the open period for directors buying can be very narrow where news is imminent but fortunately in CHP's case it is already public knowledge what we are now waiting to see announced.