AMER.L Regulatory News (AMER)

19 Feb 2007 07:01

Chaco Resources PLC19 February 2007 19 February 2007 CHACO RESOURCES PLC ("Chaco" or "The Company") PRIMAVERA UPDATE FOR CACHAPA #1 WELL & NEW AREA Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focusedin South America announces that the spud date for the Cachapa #1 well on thePrimavera block, Colombia, is now anticipated to be in the first half of March2007. The Operator, Gran Tierra Energy Inc, has advised that the rig is currently inColombia and is being assembled and serviced before moving to the Cachapawellsite. Negotiations for a new exploration project are proceeding satisfactorily and wehope to be in a position to make an announcement in a few weeks time. Competent person: Technical information in this announcement has been reviewedby Graeme Stephens, the Company's Technical Director. Mr Stephens is a qualifiedgeologist and has been a member of the American Association of PetroleumGeologists since 1970. 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 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. 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 EN