AMER.L Regulatory News (AMER)

14 Jun 2006 09:11

Chaco Resources PLC14 June 2006 14th June 2006 CHACO RESOURCES PLC ("Chaco" or "the Company") OPERATIONS UPDATE Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focusedin South America, announces an operations update on its prospects in Paraguayand Colombia. PARAGUAY: Curupayty Block (Chaco Equity 100%) Reprocessing of existing seismic lines commenced in late March and is proceedingon schedule for completion in early July. Interpretation of the seismic is thenscheduled for July and August. With interpretation complete the company willthen review the results and decide whether to proceed to drilling or proceedwith a farmout campaign. San Pedro Block (Chaco Equity 100%) Data collection is continuing prior to commencement of seismic re-processing.Some difficulties were encountered in locating the old seismic tapes but thesehave now been located in the US and are currently being copied. Canindeyu Block(Chaco Equity 100%) This block is still pending award from the Paraguayan Government. COLOMBIA: Platanillo Block(Chaco Equity 25%) Joint Venture meetings have been held recently with the Operator, Ecopetrol, andthe operating team put in place. Rig availability is currently being evaluatedand seismic re-processing of Alea data is about to begin. The Operator hasoffered the Joint Venture a drilling slot in its current contract with a helirigbut is also seeking a cheaper option. Re-entry of Alea 1 is scheduled tocommence in last quarter 2006. In the interim the Environmental Impact Study isunder way. Puerto Lopez Oeste Block (Chaco Equity 54%) Re-processing of existing seismic data commenced in late March. Preliminaryindications are that a Mirador stratigraphic trap is not present, but aconventional Mirador fault play has been indicated in the Block. Furtherre-processing of the data and final interpretation will be required before thesize and shape of this feature can be determined. This is scheduled to becompleted in late July. After the interpretation is complete the Joint Venturewill then programme and shoot a minimum of 100 kms of new 2D seismic to properlydelineate the prospect. This is likely to occur in August and September withprocessing and interpretation to follow in October. The nearest Mirador faulttrap is the Apiay Field of about 100mm bbls located about 80 kms west of thePuerto Lopez Oeste Block. A decision whether to proceed into the next year anddrill one well is required in December. Primavera Block (Chaco Equity 55%) The Primavera E&P Contract was signed by the Operator, Argosy EnergyInternational, on May 9, 2006. This block covers an area of approximately146,000 hectares in the north eastern part of the Llanos Basin. Ten undrilled leads and structures have been previously mapped in the block withindicated areas of closure ranging from 4 sq.kms to 40 sq.kms. Re-processing and re-interpretation of seismic will be required to confirm thismapping. A number of wells were drilled some years ago immediately to the east of thePrimavera block all of which appear to have been off structure and most of whichappear to have been prematurely terminated above the prospective Miradorreservoir. Many of these wells had oil shows and one, El Miedo 4 did not reachthe Mirador Formation but recovered 97bbls of 19degrees API oil from the CarboneraFormation, an Eocene Formation which overlies the Mirador. The main Mirador reservoir of Eocene age lies at a depth of less than 4,000 feetin the block, and after mapping is complete two structural targets will beselected for drilling commencing late in 2006. Competent person:Technical information in this announcement has been supplied orverified by Graeme Stephens, the Company's Technical Director. Mr Stephens is aqualified geologist and has been a member of the American Association ofPetroleum Geologists since 1970. Further details on the Company and its projects are available on the Company'swebsite: www.chacoplc.com For further information contact: Nicola Brookes, Finance Director Chaco Resources plc Tel: 01494 431195 Marc Young Simon Robinson / Ana Ribeiro Daniel Stewart & Company plc Parkgreen Communications Tel No: 0207 776 6550 Tel: 020 7493 3713 This information is provided by RNS The company news service from the London Stock Exchange