Rig Hired for Primavera Block in Colombia

Chaco Resources Plc reports that the Operator of the Primavera Block in the Llanos Basin of Colombia, Gran Tierra Energy, has secured a contract for a drilling rig to drill two wells in this block. The Operator has advised that a drilling contract has been signed with Drilling and Workover Services on Dec 21st and has forecast a spud date late in the first quarter of 2007, for the first well, Cachapa 1.

The E&P Contract for Primavera was signed on May 9th by the ANH, the Colombian state agency that oversees hydrocarbon permits. Chaco is earning a 55% equity interest in this E&P project. The program involves reprocessing and re-interpreting existing seismic and drilling two wells. The partners are Expet and Gran Tierra which recently acquired Argosy Energy International.

Technical Director, Graeme Stephens, commented, "It is good to finally have a rig contracted in this tight rig market. The latest mapping on the Cachapa and Capibara Prospects showed them both to be typical Llanos Basin fault structures with areas of closure of around 5 sq kms and 3 sq kms respectively. If the Carbonera fault traps prove to be productive, there is substantial follow-up potential in the block. Four of these fault structures have been delineated in the northern part of the block, and further detailed seismic is likely to indicate other comparable structures in the largely unexplored portion of the block to the south and west."