AMER.L Regulatory News (AMER)

28 Mar 2007 15:14

Chaco Resources PLC28 March 2007 28 March 2007 CHACO RESOURCES PLC ("Chaco" or "The Company") PRIMAVERA UPDATE FOR CACHAPA #1 WELL Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focusedin South America announces that drilling has commenced at its Cachapa well onthe Primavera block in the Llanos Basin in Colombia. The Company states that further announcements will be made in due course,following completion of the drilling and evaluation of the results. - Ends- For further information contact: Nicola Brookes, Finance Director Chaco Resources plc Tel: 01494 431195 Lindsay Mair Clare IrvineDaniel Stewart & Company plc Parkgreen CommunicationsTel No: 0207 776 6550 Tel: 0207 851 7480 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 Cachapa well will be the first of a proposed four well drilling program tobe undertaken in 2007 on the Primavera and Platanillo Blocks and will representa significant milestone in Chaco's corporate development. This will be the firstwell drilled by Chaco since its move into the oil and gas sector. 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, Paraguay andColombia. This information is provided by RNS The company news service from the London Stock Exchange