Chaco Resources Receives Approval for Puerto Lopez Oeste 2nd Phase

Chaco Resources will be entering into the second phase of the exploration program of its Puerto Lopez Oeste block in Colombia. The decision follows the processing and interpretation of seismic data obtained so far, and will lead to the drilling of at least one well at the earliest practicable opportunity.

The Operators, Expet S.A.and Consultoria Colombiana S.A. are already in discussion with suppliers regarding rig availability, but will only be in a position to finalise this when the drill site has been identified on conclusion of seismic interpretation.

Chaco is earning a 54% equity interest over the Puerto Lopez Oeste Block in the Llanos Basin, east of Bogota.

Graeme Stephens, Technical Director, commented "There are two interesting leads in 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 seismic acquisition programme in order to identify the best drilling target".