Chaco Reports Dry Hole in Colombia

Chaco Resources Plc said that drilling on the Cachapa well on the Primavera block in the Llanos Basin in Colombia has completed.

The well, which was operated by Gran Tierra Energy, was drilled to 3,551ft into basement. It did not encounter commercial quantities of hydrocarbons and has been plugged and abandoned. Chaco Resources had a 55% interest in the well. The Company has gained some valuable experience and information which will be used within its portfolio.

The drilling rig will shortly be moved to the Sayona-1 location within the Primavera Block.

Chaco and its partners, Gran Tierra Energy Colombia and Expet SA applied for the Primavera contract in September 2005, approximately a year and a half before the present management team assumed control of Chaco. The current exploration phase terminates in May 2007.