AMER.L Regulatory News (AMER)

22 Dec 2006 09:14

Chaco Resources PLC22 December 2006 AIM: CHP 22 December 2006 CHACO RESOURCES PLC ("Chaco" or "the Company") Rig Contract for Primavera signed Chaco Resources Plc (AIM:CHP) announces that the Operator of the Primavera Blockin the Llanos Basin of Colombia, Gran Tierra Energy Inc.(Gran Tierra), hassecured a contract for a drilling rig to drill two wells in this block. TheOperator has advised that a drilling contract has been signed with Drilling andWorkover Services on Dec 21st and has forecast a spud date late in the firstquarter of 2007, for the first well, Cachapa 1. Updates on an actual spud datewill be released as they become available. The E&P Contract for Primavera was signed on 9 May by the ANH, the Colombianstate agency that oversees hydrocarbon permits. Chaco is earning a 55% equityinterest in this E&P project. The programme involves reprocessing andre-interpreting existing seismic and drilling two wells. The partners are Expetand Gran Tierra which recently acquired Argosy Energy International. Technical Director, Graeme Stephens, commented, "It is good to finally have arig contracted in this tight rig market. The latest mapping on the Cachapa andCapibara Prospects showed them both to be typical Llanos Basin fault structureswith areas of closure of around 5 sq kms and 3 sq kms respectively. If theCarbonera fault traps prove to be productive, there is substantial follow-uppotential in the block. Four of these fault structures have been delineated inthe northern part of the block, and further detailed seismic is likely toindicate other comparable structures in the largely unexplored portion of theblock to the south and west." Technical information in this announcement has been reviewed by Graeme Stephens,the Company's Technical Director. Mr Stephens is a qualified geologist and hasbeen a member of the American Association of Petroleum Geologists since 1970. For further information contact: Nicola Brookes, Finance Director Chaco Resources plc Tel: 01494 431195 Lindsay Mair Simon Robinson / Ana Ribeiro Daniel Stewart & Company plc Parkgreen Communications Tel No: 0207 776 6550 Tel: 0207 494 9023 Notes to Editors: Background Chaco Resources Plc is an oil and gas exploration and production company whosestrategy is to pursue hydrocarbon exploration and development opportunities inSouth America. Chaco currently operates in Paraguay and Colombia. The Primavera block was Chaco's third venture in Colombia where a fundamentalchange in the fiscal laws and an overhaul of the state's management ofhydrocarbon exploration and production permits has created a very favourableinvestment environment. Chaco has teamed up with strategic joint-venturepartners (Expet S.A.) who have many years of experience operating in Colombiaand through whom it has been seeking to participate in exploration andproduction (E&P) concessions The Carbonera Sandstones are a well established, productive reservoir formationin the Llanos basin. The 97 bbls of oil recovered in the El Miedo # 4 Well,immediately to the East of the Primavera block, were from a sandstone of theCarbonera formation. For further information on this and Chaco's other interests in Colombia andParaguay please see the website www.chacoplc.com Chaco Resources plc has offices in the UK, Western Australia and Paraguay and isin the process of opening an office in Colombia. This information is provided by RNS The company news service from the London Stock Exchange