Chaco: Primavera Well Set to Spud Next Month

Chaco Resources Plc said that the spud date for the Cachapa £1 well on the Primavera block, Colombia, is now anticipated to be in the first half of March 2007.

The operator, Gran Tierra Energy Inc, has advised that the rig is currently in Colombia and is being assembled and serviced before moving to the Cachapa wellsite.

Negotiations for a new exploration project are proceeding satisfactorily, and Chaco hopes to be in a position to make an announcement in a few weeks' time.

Chaco Resources Plc is an oil and gas exploration and production company whose strategy is to pursue hydrocarbon exploration and development opportunities in South America. Chaco currently operates in Paraguay and Colombia.

The Primavera block was Chaco's third venture in Colombia, where a fundamental change in the fiscal laws and an overhaul of the state's management of hydrocarbon exploration and production permits has created a very favourable investment environment. Chaco has teamed up with strategic joint-venture partners (Expet S.A.) who have many years of experience operating in Colombia and through whom it has been seeking to participate in exploration and production (E&P) concessions.

The Carbonera Sandstones are a well-established, productive reservoir formation in 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 the Carbonera formation.

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 and 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.