Chaco Resources Says Spud Date for Cachapa #1 Well is in February

Chaco Resources says that the spud date for the Cachapa #1 well on the Primavera block, Colombia, is anticipated to be in the second half of February 2007.

The Operator, Gran Tierra Energy Inc, has advised that the rig arrived in Colombia on January 15, 2007 and after drilling a well for another company will move to the Cachapa wellsite. Following drilling Cachapa #1, the rig will move to the Capibara wellsite, also in the Primavera Block.

Technical Director, Graeme Stephens said today: "The spudding of the Cachapa well will represent a significant milestone in Chaco's corporate development. This will be the first well drilled by Chaco since its move into the oil and gas sector.

The Cachapa well will be the first of a proposed four well drilling program to be undertaken in 2007 on the Primavera and Platanillo Blocks."