AMER.L Regulatory News (AMER)

23 Apr 2007 07:02

Chaco Resources PLC23 April 2007 23rd April 2007 Chaco Resources plc ("Chaco" or "the Company") Sayona #1 drilling result Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focusedon South America, announces that drilling of the Sayona-1 well in the Primaverablock in the Llanos Basin of Colombia has been completed. The well, which wasoperated by Gran Tierra Energy, was drilled to 3,460ft into the basal sands. Itdid not encounter commercial quantities of hydrocarbons and will be plugged andabandoned. Chaco Resources had a 55% interest in the well. The drilling rig will be demobilized once abandonment operations are completed.The two drilled structures appeared to have valid structural closure and thelack of commercial hydrocarbons could therefore be due to an insufficient sourcecharge or hydrodynamic flushing of the reservoirs by formation water. Furtherstudy is required before any firm conclusions can be reached. The current exploration phase terminates in May 2007. The Company is integratingthe well data into the geological model in order to evaluate the futureexploration potential of the block. Competent person: Technical information in this announcement has been reviewedby Dr John Wardle Ph.D., the Company's Chief Executive. Dr Wardle has 23 yearsexperience in the industry, having worked for BP, Britoil, Emerald Energy andPebercan, and is a trained drilling engineer. - Ends - For further information, call: Jerry Keen, Blue Oar - 020 7448 4492 Billy Clegg/Caroline Stewart, FD - 0207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange