Chaco Resources PLC, the oil and gas explorer and developer focused in South America announces audited results for the year ended 31 March 2007.
Highlights:
• Giles Clarke appointed Chairman, John Wardle appointed CEO, Nick Harrison appointed Finance Director with another senior Board appointment due imminently
• New management focussed on prioritising advanced projects including the Alea discovery in the Platanillo contract area and recently announced Fenix block
- Withdrawal from Puerto Lopez Oeste as new seismic data did not indicate area commercially viable
- Drilling at Primavera unsuccessful
• Progress with Platanillo block. Key milestones include:
- Environmental approval clears way for active work programme
- Progress with maintenance of existing road and upgrade of two bridges - 65% complete - estimated completion by the end of Q2 2007
- Civil works to construct new access road and well locations will begin shortly and be complete during Q3 2007
- Workover rig will be used to re-enter Alea-1, estimated Q4 2007
- 1500HP rig will be used to drill Platanillo-1 & 2 - drilling during Q4 2007
- Appraisal data will be available from new wells prior to year end
- Potential for first production in 2007 ahead of full scale development
• Farm-in agreement with Fenix Oil and Gas S.A., to earn a 48.75% interest in the Fenix Block, an area of 24,117 hectares located in the Middle Magdalena Basin of Colombia:
- Proven petroleum system with previous wells on block producing oil
- Region has been a prolific producer of oil over many years with discovered reserves of approximately 1.9 billion barrels of oil and 2.5 TCF of gas in over 41 distinct fields
• Fenix milestones:
- 3D seismic survey put out to tender - prices received are in line with budget and contract to be awarded shortly, with completion expected Q4 2007
- 2D reprocessing put out to tender, work to begin mid-May and results expected mid June
- Exploration well due to spud Q4 2008 in second exploration phase
• Paraguayan subsidiary, Bohemia S.A. awarded evaluation permit over third area (Alto Parana) in Paraguay
- San Pedro & Alto Parana 2D acquisition Q4 2007, seismic interpretation completed by Q3 2008, potential spud date Q2 2009
• Proposed change of name to Amerisur Resources plc
Giles Clarke, Chairman, commented:
'Your Company has seen major changes since I became Chairman, after a year of disappointing progress.
'We now have an outstanding team in place, and a focussed strategy of delivering near term cash flows and value to shareholders.
'The new Board anticipates an improvement in exploration results as the Company moves to becoming an oil producer from lower risk exploration acreage with the known presence of hydrocarbons. I look forward to reporting on the progress we will be making throughout the coming year.'
