My stock to double in 07 and think it may well multi bag is Chaco Resources (CHP), oil and gas explorer in Colombia and Paraguay. They have their first drilling contract signed to drill their primavera block in Q1 07 to go from explorer to producer. Estimates of what they believe could be in this block is frightening and in 12 weeks or so we should know, they will also drill 2 other blocks in early 07 one of which is a re entry that has already poured oil at a rate of 500bpd back in the 80s/90s when oil was cheap and it wasnt thought to be commercially viable at that time, however with new technology and the price of oil it is thought this could hold anything up to 100mbpd, this should be just a shoe in. The Primavera block to be drilled very soon has a high risked potential valuation of 120p by Hardman who independently valued Chacos business.
In Paraguay Chaco have 3 huge blocks , Paraguay is virgin teritory but borders countrys with prolific strike rates and huge resovoirs, as the technical director said oil basins do not respect borders, Other larger companies are taking note and a lot of the big boys are snapping up areas in Paraguay, Chaco have got in first and have had the pick, two main blocks are actually in the Chaco region of Paraguay, the management are very experienced and have not failed to deliver on any promises so far they believe in Paraguay so much hey named the company after the region that they will drill, seismic studies are well under way.
07 will be a very exciting year and news will flow at a regular rate, if they even prove up one of their areas it will catapult the sp if they strike the lot then I will retire.
Chaco (CHP) current sp is 11.75p with market cap of 60m. More info and some very learned posters are on the BB thread for chaco.
