CHACO RESOURCES (new name for GMN)

Trots, Good morning.

The RNS is positive imo. "Early results have indicated the presence of hydrocarbons at various levels within the well, but are as yet inconclusive." But no logging has taken place. Logging was done on Vog Well 104.


This is part of VOGs RNS 22/8/05 :-
"The well was designed as a "Geo-Probe" for the purposes of collecting data for further evaluation of the subsurface, primarily on the northwest corner of the licence, which is adjacent to the highly productive main Medvezhye Field operated by Gazprom. The primary subsurface targets for this well were the Cenomanian, (PK1) and the Cenonian, (CK1), which are located on a shelf margin on the western side of the main "Medvezhye High" and are productive in the Medvezhye Field.

The well was successfully logged to a total depth of 1,308 meters. Subsequent petrophyscial log interpretations were generated by both Baker Atlas and KazPromGeophysika together with representatives of the Victoria technical team and independent consultants from DeGolyer & MacNaughton ("D&M") at the Company's office in Almaty, Kazakhstan."

I can only assume CDS were not prepared to pay for the cost of the likes of experts such as Baker Atlas etc until they had confirmed presence of hydrocarbons. They are now going to do this logging.

I am not a drilling man as you know so take what I have posted guess work.

Regards,

GD.

Merry Christmas to all.