Chaco Resources CHP (Moderated thread)

Chaco Resources says amalgamates years 1&2 of Platanillo contract


LONDON (AFX) - Chaco Resources PLC said operator Ecopetrol has received
approval to amalgamate Years 1 and 2 of the Platanillo E&P contract.
AIM-listed oil and gas explorer Chaco said it had sought the amalgamation
due to new environmental regulations in Colombia which had caused delays in
environmental licensing for the access road and drill site which would have
resulted in Ecopetrol not being able to complete the Year 1 work obligation by
the anniversary date of Jan 10.
The amalgamation, approved by ANH -- the government body which administers
exploration and production contracts -- now requires that the re-entry of Alea
1, the drilling of Platanillo 1 appraisal well and the drilling of a second
appraisal well need to be finished before the end of the second permit year on
Jan 10 2008.
A Chaco Resources spokesman said: "This ruling is good news for the joint
venture as it will now allow Ecopetrol to plan and implement a logical
operations programme that accommodates the recently imposed environmental
requirements for site access, without having to resort to the very expensive
helicopter supported operation which would otherwise have been needed to try to
meet the timing deadline.
"Early joint venture meetings are planned to review the operator's new
timetable for the re-entry of Alea 1, the drilling of Platanillo 1 and the
drilling of an additional appraisal well, and details will be released as soon
as this timetable is finalised."
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