Chaparral Res Inc(CHAR.OB)**Exploration & Production

[fous]

I know i know, Its an OTCBB stock. Setravis is probably gonna yell at me for this, He always does when i do it on accident LOL This time its on purpose ,  I really don't think a stock trading at 5.95 belongs in the "Penny stock picking board". So im being ignorant and posting it here. . I think CHAR.OB is a strong buy for tomorrows open.

Anyways CHAR.OB is looking very attractive. Sequential revenue growth over the past several year with awsome results on there latest earnings report.

As well the chart is shaping up extremely nicely with an ascending triangle breakout. Price action was in a solid uptrend earliar in 05 and on 9/29/05 had an unusual and unexpected panic selloff without any justification for it.


Price action breaking out of an ascending triangle today on heavy volume for confirmation:



CHAR ended up releasing a press release about the unexpected market action:

Chaparral Resources, Inc. Announcement with Regard to Recent Market Activity in Its...
Tue Oct 4, 2005 8:28 AM ET

WHITE PLAINS, N.Y.--(Business Wire)--Oct. 4, 2005--
      Chaparral Resources, Inc. (OTCBB:CHAR) (the "Company")
today issued the following statement with regard to the recent market
activity in its shares:
   The Company's common shares traded down $0.96 from a high of $6.94
on Friday, September 30, 2005, to close at $5.98 on unusually high
trading volume of 1.971 million shares. On Monday, October 3, 2005,
the share price was off $0.88, to close at $5.10 on trading volume of
1.81 million shares. The Company is not aware of any operational or
managerial changes that would cause such change in the stock price,
and the Company remains on track to reach its operational and
financial objectives for fiscal year 2005.
   On Friday, September 30, 2005, Nelson Resources Limited
(TSX/AIM:NLG) ("Nelson"), which has a 60% ownership interest in the
Company and a separate direct 40% interest in JSC Karakudukmunai
("KKM"), announced that it had entered into an agreement to negotiate
with Lukoil Overseas Holding Ltd. ("Lukoil") concerning a proposal
received from Lukoil to acquire 100% of the fully diluted common
shares of Nelson for US$2,000,000,000 in cash.
   The Company has received no information regarding the intentions
of Lukoil with respect to the Company in the event the proposed
transaction with Nelson is completed. The Company was not informed of
the proposed transaction in advance of the public announcements by
Nelson and Lukoil and has not been a party to the discussions between
those companies.
   The Board of Directors of the Company has appointed a special
committee, to be chaired by Peter G. Dilling, an independent director,
to represent the interests of the shareholders with respect to this
potential transaction. The committee is authorized to retain advisors,
to obtain further information from Lukoil and Nelson and to act to
protect the interests of all shareholders.
   Chaparral Resources, Inc. is an oil and gas development and
production company. The Company's only operating asset is its
participation in the development of the Karakuduk Field, in the
Republic of Kazakhstan, through KKM, which is the operating company.
The Company has directly and indirectly a 60% ownership interest in
KKM with the other 40% ownership interest being held by Nelson.
Nelson, an independent oil company listed on the Toronto Stock
Exchange and the Alternative Investment Market of the London Stock
Exchange, holds a majority interest in Chaparral and operates several
other producing oil fields in Kazakhstan. More information is
available on the Company's web site, www.chaparralresources.com.

.................................................................................................................................

Chaparral Resources Announces Third Quarter Results and Corporate Update; Net Income...
Mon Nov 14, 2005 11:12 AM ET

Chaparral Resources Announces Third Quarter Results and Corporate Update; Net Income Rises Nearly Fourfold to $13.32 Million or 35 Cents Per Share; Revenue More Than Doubles

WHITE PLAINS, N.Y.--(Business Wire)--Nov. 14, 2005--
      Chaparral Resources, Inc. (OTCBB:CHAR) (the Company)
today announced its financial results for the third quarter 2005 and a
corporate update on the proposed offer by Lukoil Overseas Holding
Limited to purchase the Company's majority shareholder, Nelson
Resources Limited.

   Financial Results

   The Company reported net income of $13.32 million, or 35 cents per
share, for the quarter ended September 30, 2005, compared to $3.56
million, or 9 cents per share, for the quarter ended September 30,
2004. The $9.76 million increase in net income primarily relates to
higher revenues as a result of higher prices and higher sales volumes
achieved during the third quarter of 2005.
   Revenues were $50.44 million for the third quarter of 2005
compared with $22.08 million for the third quarter of 2004. The $28.36
million increase is the result of higher crude prices and sales
volumes. During the third quarter of 2005, the Company sold
approximately 984,000 barrels of crude oil for an average $51.24 per
barrel. Comparably, Chaparral sold approximately 674,000 barrels of
crude oil for an average $32.74 per barrel during the third quarter of
2004. The result is a positive price variance of $18.21 million and a
positive volume variance of $10.15 million.
   For the nine months ended September 30, 2005, the Company recorded
net income of $23.75 million, or 62 cents per share, compared to net
income of $5.49 million, or 14 cents per share, for the nine months
ended September 30, 2004. (By comparison, net income for the full year
2004 was 22 cents per share.) The $18.26 million increase in net
income for the nine month period is primarily a result of higher crude
prices.
   Revenues for the first nine months of 2005 were $107.92 million
compared with $55.16 million for the first nine months of 2004. The
$52.76 million increase is the result of higher crude prices and sales
volumes. During the first nine months of 2005, the Company sold
approximately 2,377,000 barrels of crude oil for an average $45.40 per
barrel. Comparably, approximately 2,029,000 barrels of crude oil were
sold for an average $27.19 per barrel for the first nine months of
2004. The result is a positive price variance of $43.30 million and a
positive volume variance of $9.46 million. The Company exported 93% of
total sales with 7% sold to the domestic market during the first nine
months of 2005, compared with 91% export sales and 9% domestic sales
in the first nine months of 2004.
   Transportation costs for the third quarter of 2005 were $4.97
million, or $5.05 per barrel, and operating costs associated with
sales were $4.05 million, or $4.11 per barrel. Comparatively,
transportation costs for the third quarter of 2004 were $3.33 million,
or $4.94 per barrel, and operating costs associated with sales were
$1.76 million, or $2.61 per barrel. While transportation costs have
remained relatively constant, the main reason for the increase in
operating cost per barrel relates to changes in cost allocation
procedures resulting in a lower percentage of field expenditures being
capitalized.
   Production for the first nine months of 2005 was 2.75 million
barrels, equivalent to 10,075 barrels of oil per day (bopd), compared
to 2.19 million barrels, or 7,993 bopd, in the first nine months of
2004, an increase of 26%. Current daily oil production is in excess of
12,000 barrels per day.
   Drilling activity continued in the third quarter. The Company
drilled three wells (9,609m) in the third quarter of 2005 compared to
3.6 wells (11,409m) in the second quarter of the year. The reduction
in meterage was due to the drilling rig requiring essential
maintenance, as a result of which 20 drilling days were lost. As of
September 30, 2005 the total field well count had risen to 76 compared
to 66 on December 31, 2004. The producing well count at the field as
of September 30, 2005 was 58 wells compared to 45 at the end of 2004.
One producing well was converted to a water injection well.
   During the remainder of 2005, average production is expected to be
maintained at a minimum of 12,000 bopd. Three new wells are expected
to be drilled, six more wells converted to artificial lift, and two
wells added to the water injection fund. Construction of the gas
pipeline connecting the field to the Central Asian gas transit
pipeline has been completed, and after installation of the necessary
condensate traps and gas compressors, this will allow all gas not used
in field operations to be sold.
   Construction of a rail loading facility commenced in September.
When completed in mid-2006, this will allow KKM to export crude by
rail to Aktau, thus reducing its dependency on the KTO export pipeline
system. KKM produces a higher quality crude than the blend exported
via KTO, a quality differential for which it currently receives no
compensation. The rail loading facility will offer the field
alternative export routes and allow KKM to market its crude
independently, thus achieving better netbacks.
   Simon Gill, Chief Executive Officer of Chaparral, commented, "The
continued increases in production from the Karakuduk field combined
with the current high crude oil prices has helped the Company to
achieve a 52% increase in revenue and 102% increase in net income over
the second quarter 2005, and a 128% increase in revenue and 274%
increase in net income compared to the third quarter of 2004.
Chaparral is benefiting from the focused management leadership in KKM
which has resulted in better production rates from new wells and the
optimization of production from existing wells. The Company remains on
track to achieve its full year 2005 targets."

   Company Update

   In response to shareholder and public inquiries, the Company
wishes to summarize the current status of the proposed offer by
affiliates of Lukoil Overseas Holding (Lukoil) to purchase 100% of the
shares of Nelson Resources (Nelson) as it affects the Company. The
following summary is not complete in detail and readers should refer
to the primary announcements and filings by the parties, which include
the Company, Nelson, Lukoil and other entities.

   --  On September 30, 2005, Nelson announced it had entered into an
        agreement to negotiate with Lukoil for the terms of an offer
        to acquire 100% of Nelson's shares.

   --  On October 3, 2005, the Company announced that it had formed a
        special committee of the board of directors to represent the
        interest of shareholders with respect to the potential
        Nelson/Lukoil transaction.

   --  On October 13, 2005, Nelson entered into an Agreement to
        Amalgamate with Lukoil through a subsidiary which would
        acquire 100% of Nelson's shares for US$2 billion.

   --  On October 14, 2005, Lukoil announced that it had purchased
        approximately 65% of Nelson's outstanding shares from four
        principal shareholders on the same terms offered to other
        shareholders.

   --  On November 4, 2005, Nelson distributed a Notice of General
        Meeting of Shareholders to be convened on December 2, 2005, to
        vote on the offer by Lukoil to amalgamate. If a quorum of 75%
        of the shareholders vote in favor of the transaction, and
        other conditions are met, the amalgamation of Nelson into
        Lukoil would occur by December 12, 2005. If the amalgamation
        is not completed, Lukoil will remain the 65% majority
        shareholder of Nelson.

   --  As of this date, there have been no changes to the management
        or directors of Chaparral, other than the appointment of
        Charles Talbot as CFO, previously announced on October 14,
        2005. There has been no indication of Lukoil's future
        intentions as the majority shareholder of Nelson.

   Chaparral's special committee has established communication with
Lukoil. Lukoil's position is that it is not currently prepared to
discuss Chaparral issues until the amalgamation with Nelson is
complete. The board and the special committee will inform shareholders
and the public of information regarding the Lukoil/Nelson transaction
as it relates to the Company as and when it is made available.
   The Company's reports and filings may be found on the SEC internet
site www.sec.com. Nelson's reports and filings, including the
Management Information Circular relating to the amalgamation with
Lukoil, may be found on the Canadian SEDAR internet site
www.sedar.com.
   Chaparral Resources, Inc. is an oil and gas development and
production company. The Company's only operating asset is its
participation in the development of the Karakuduk Field, in the
Republic of Kazakhstan, through KKM, which is the operating company.
The Company has directly and indirectly a 60% ownership interest in
KKM with the other 40% ownership interest being held by Nelson.
Nelson, an oil company listed on the Toronto Stock Exchange and the
Alternative Investment Market of the London Stock Exchange, holds a
majority interest in Chaparral and operates several other producing
oil fields in Kazakhstan. More information is available on the
Company's web site, www.chaparralresources.com.
   Information Regarding Forward-Looking Statements: Except for
historical information contained herein, the statements in this News
Release are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements involve known and unknown risks
and uncertainties, which may cause the Company's actual results in
future periods to differ materially from forecasted results. These
risks and uncertainties include, among other things, volatility of oil
prices, product demand, market competition, risks inherent in the
Company's international operations, imprecision of reserve estimates
and Chaparral's ability to replace and expand oil and gas reserves.
These and other risks are described in the Company's Annual Report on
Form 10-K and other filings with the Securities and Exchange
Commission.

Best of luck,

-fousc

[Michael]

Hi Fousc,

This is a great oil stock fundamentally. I used a lot of time analysing it when I was holding NLG.

I do however not like that Lukoil now is the main shareholder.

CTE has turned out to be a great pick. Are you still in?

Mike

[fous]

Hi Fousc,

This is a great oil stock fundamentally. I used a lot of time analysing it when I was holding NLG.

I do however not like that Lukoil now is the main shareholder.

CTE has turned out to be a great pick. Are you still in?

Mike

Nah Mike i sold back in september lol The charts look pretty sharp the last week or so though.

also quick question.... Lukoil is the largest oil company in Russia, What don't you like about them?

There chart traded on the PK's performed outstanding this year.

LUKOY.PK

[Terliso]

CHAR.OB is trading in OTCBB market... Why posted here in stock picking Board?

[Terliso]

I know i know, Its an OTCBB stock. Setravis is probably gonna yell at me for this, He always does when i do it on accident LOL This time its on purpose ,  I really don't think a stock trading at 5.95 belongs in the "Penny stock picking board". So im being ignorant and posting it here. . I think CHAR.OB is a strong buy for tomorrows open.

Still trading in OTCBB market, no matter how high the price is...so it should belong to penny stock picking board

[Ramsburg]

I know i know, Its an OTCBB stock. Setravis is probably gonna yell at me for this, He always does when i do it on accident LOL

Hi fousc ! dont be mad with me
But I have to follow the board's rules.

Anyway, great finding ! applaud !

[fous]

I know i know, Its an OTCBB stock. Setravis is probably gonna yell at me for this, He always does when i do it on accident LOL This time its on purpose ,  I really don't think a stock trading at 5.95 belongs in the "Penny stock picking board". So im being ignorant and posting it here. . I think CHAR.OB is a strong buy for tomorrows open.

LOL i knew this wasn't gonna fly.

Hi fousc ! dont be mad with me
But I have to follow the board's rules.

Anyway, great finding ! applaud !

No worries