AMER.L Regulatory News (AMER)

14 Dec 2006 07:01

Chaco Resources PLC14 December 2006 AIM: CHP 14 December 2006 CHACO RESOURCES PLC ("Chaco" or "'the Company") CHACO ANNOUNCES APPROVAL FOR SECOND PHASE PUERTO LOPEZ OESTE The Directors of Chaco Resources Plc (AIM:CHP), the oil and gas explorer anddeveloper in Paraguay and Columbia are pleased to announce that the Companywill be entering into the second phase of the exploration programme of itsPuerto Lopez Oeste block in Colombia. The decision follows the processing andinterpretation of seismic data obtained so far, and will lead to the drilling ofat least one well at the earliest practicable opportunity. The Operators, Expect S.A.and Consultoria Colombiana S.A. are already indiscussion with suppliers regarding rig availability, but will only be in aposition to finalise this when the drill site has been identified on conclusionof seismic interpretation. Chaco is earning a 54% equity interest over the Puerto Lopez Oeste Block in theLlanos Basin, east of Bogota. Graeme Stephens, Technical Director, commented "There are two interesting leadsin this block, the Metica Sur and the Santaya (formerly referred to as Metica),and we are looking forward to receiving the feedback from the recent seismicacquisition programme in order to identify the best drilling target". -Ends- Competent person: 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 DirectorChaco Resources plcTel: 01494 431195 Lindsay Mair Simon Robinson / Ana RibeiroDaniel Stewart & Company plc Parkgreen CommunicationsTel No: 0207 776 6550 Tel: 020 7493 3713 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 Puerto Lopez block was Chaco's second venture in Colombia where afundamental change in the fiscal laws and an overhaul of the state's managementof hydrocarbon 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 On 3 October 2006, the Company announced that it had secured a change in theeastern boundary of the block resulting in the inclusion of the majority of thelarge Metica Sur (South) lead. Metica Sur is one of two interesting leads identified as a result of thereprocessing and interpretation of existing seismic in the Puerto Lopez OesteBlock, which was completed in September. The other, perceived as the moreinteresting of the two, is the Metica, which has recently been renamed theSantaya Lead. Both are plays in the prospective Mirador Formation. To mature these leads into prospects required further seismic acquisition andtherefore a 100km new seismic programme has been contracted. This will enablethe Company to identify the location of the planned well which must be drilledbefore the end of the second permit year, which is on 18 January 2008. Thegeology of the Santaya lead is controlled by the Metica 1 Well, drilled in 1985by Elf Aquitaine immediately to the northwest of the lead, and which recoveredcrude oil in a drill stem test of the Mirador Formation. More detailed information on Chaco's activities in both Colombia and Paraguaycan be found on the company's 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