AMER.L Regulatory News (AMER)

7 Aug 2006 09:18

Chaco Resources PLC07 August 2006 7 August 2006 AIM: CHP CHACO RESOURCES PLC ("Chaco" or "the Company") Results for the Year ended 31 March 2006 Chaco Resources PLC announces audited results for the year ended 31 March 2006. Highlights of the year • Company's Paraguayan subsidiary, Amerisur SA, awarded hydrocarbonexploration and exploitation concessions in Curupayty and San Pedro • Farm-in agreement signed with Repsol Exploracion Colombia SA andEcopetrol S.A. (Chaco: 25% working interest) over Platanillo block - withundeveloped oil field in the Putumayo Basin, Colombia • Placing of 84,680,667 New Ordinary Shares, at 6 pence per OrdinaryShare, raises £5.05m gross to fund commitments under the Platanillo deal • Joint Venture between Chaco (54%), Expet SA and Consultoria ColombianaSA awarded Puerto Lopez Oeste exploration and production block in the LlanosBasin, Colombia • Placing of 13,636,364 New Ordinary Shares, at 11 pence per OrdinaryShare, raises £1.5 million gross, to satisfy demand from institutional investors • Joint Venture between Chaco (55%), Expet S.A. and Argosy EnergyInternational awarded Primavera exploration and production block in LlanosBasin, Columbia • Loss per share down 33% to 0.18p per Ordinary Share (y/e 31 March 2005:0.27p) • Cash balance at year end in excess of £5 million • All current programmes are fully funded Post-Year End Events • Placing of 26.666,667 New Ordinary Shares, at 15 pence per OrdinaryShare, raises £4 million gross, to fund working capital and commitments underPrimavera deal • Appointment of Nicola Brookes as Finance Director Jon Pither, Chairman of Chaco Resources, said: "The Company has succeeded inrefocusing on oil and gas at a time when the oil price is close to an all-timehigh. Our involvement in Colombia, one of the most business friendly countriesin South America is part of a rapid acceleration of exploration in that country,with involvement from majors such as BP and Occidental. We continue to seekfurther opportunities and, with excellent local links and strong workingrelationships we are well placed to assess these. The Company has a busydrilling schedule planned in Colombia, and is making solid progress on earlywork in Paraguay. We remain optimistic about the potential success of theCompany and look forward to the coming year" Further details on the Company and its projects are available on the Company'swebsite: www.chacoplc.com For further information contact: Nicola Brookes, Finance DirectorChaco Resources plcTel: 01494 431195 Marc YoungDaniel Stewart & Company plcTel No: 0207 776 6550 Simon Robinson / Ana RibeiroParkgreen CommunicationsTel: 020 7493 3713 * * * * * Chairman's Statement Your Company continues to make solid progress with its plans to become an oiland gas producer, targeting some very promising oil and gas prospects in SouthAmerica and establishing itself as a serious oil exploration company in theprocess. Details of the work programme are contained in the Business Review within theforthcoming Annual Report, although it should be regarded as an update on workin progress. Since our year end of 31 March 2006 much has been achieved. The most important achievement is that we are delivering on our promise ofre-focusing the business on oil and gas at a time when the world oil price isclose to an all-time high. Needless to say, if we were embarking on this coursetoday, the cost of entry would be considerably higher, and the opportunities wehave been able to seize would probably not be available on the same attractiveterms. The acquisition of well located exploration blocks in Colombia, a world-classoil country, and in Paraguay, a potentially hydrocarbon-rich country, have beenour first critical steps forward. In Colombia we now have interests in threeblocks, thanks largely to a strategic joint venture formed with theColombian-based consultancy, Expet S.A. This relationship has given usall-important exposure to eyes and ears on the ground: local knowledge that liesat the heart of most successful businesses. In Paraguay, where we have a veryresourceful regional office, the exploration programme is advancing although isstill at an early stage. We plan to introduce farm-in partners for thesecond-phase of work. The recent news that Petrobas plan to explore in the Chacoregion of northern Paraguay is, of course, a significant development withrespect to the possibility of finding hydrocarbons in the region. In Colombia, we expect to be drilling later in calendar year 2006 on thePlatanillo Block in which we are earning a 25% interest . A worldwide shortageof drilling rigs has impacted exploration to date. However, the delays we haveendured are easing and drill rigs are now becoming available. This blockcontains the Alea well, which flowed 533 barrels of oil a day in 1988, and basedon which there is every reason to be optimistic that an oilfield of considerablesignificance to the Company can be expected. In the Puerto Lopez Oeste Block, in which we are earning a 54% interest,re-processing of seismic data started in the final days of the year underreview. Initial feedback from the technical analysis indicates the presence of aMirador fault play lead. More work is required but this is a very positivedevelopment, as the area is known for its fault plays; the nearest being theApiay Field located about 80 kilometres west of Puerto Lopez, containing anestimated 100 million barrels of oil. In the autumn the shooting of a minimum of100 kilometres of fresh two-dimensional seismic is scheduled to further advanceour plans to drill this block. The Primavera Block, in which we will earn a 55% interest, was acquired afterthe year end and features a series of undrilled leads and structures that hadpreviously been mapped. Drilling close to this block has revealed a number ofoil shows, but most early wells do not appear to have been drilled withinstructural closure. It is expected that two targets will be selected fordrilling late in 2006. Commencement of drilling will mark a milestone for the Company, with at leastfour wells planned for our blocks in Colombia before the end of the currentfinancial year. It is significant to note that this work is part of a rapidacceleration of oil exploration in Colombia, one of the most business-friendlycountries in South America. Many of the world's major oil companies, includingBritish Petroleum and Occidental, are active there. Management continues to look for opportunities to expand the asset base and,given our excellent local partners, and a good working relationship withgovernment agencies, we can look forward to this objective being achieved. Much of the success of the past year must be attributed to the small, butexcellent, management team assembled in the Company. On behalf of the Board Iextend thanks for their work. During the year we said farewell to two Directors. Tom Elder, our deputychairman, stepped down after many years of service, as did Lee Graber. To both Ioffer heartfelt thanks for their work. Since 31 March 2006 we have appointedNicola Brookes who takes on the role of Finance Director. We are very pleasedthat Martin Groak continues to serve on the Board as a Non-Executive Director:he has given many years of excellent service to the Company and his continuedinput and knowledge is invaluable. As a final observation it is worth looking back, however briefly, on how theCompany has evolved. It is now poised for its most significant development withthe commencement of a busy drilling schedule in Colombia, advancement of theearly work in Paraguay, and a continued search for additional opportunities. Theyear ahead should be an interesting one. Jon PitherChairman CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2006 12 months 12 months to 31 March 2006 to 31 March 2005 £000 £000 Turnover - - Administrative expenses (939) (672) Operating loss: (939) (672) Exceptional item - write off of debtor from formerGroup undertaking - (318) Net interest receivable and similar income 128 19 Loss on ordinary activities before taxation (811) (971) Tax on loss on ordinary activities - - Loss for the financial year (811) (971) Dividends - - Retained loss attributable to shareholders (811) (971) Loss per share - basic (0.18)p (0.27)pLoss per share - fully diluted (0.18)p (0.27)p BALANCE SHEETS AS AT 31 MARCH 2006 Group Group 31 March 2006 31 March 2005 £000 £000 FIXED ASSETSIntangible assets 739 651Tangible assets 3 2Investments 604 - 1,346 653 CURRENT ASSETSDebtors 22 58Cash at bank and in hand 5,565 642 5,587 700 Creditors: amounts falling due within one year (140) (49) NET CURRENT ASSETS 5,447 651 TOTAL ASSETS LESS CURRENT LIABILITIES 6,793 1,304 CAPITAL AND RESERVESCalled up share capital 507 390 Shares to be issued 167 500Other reserves 7,891 1,375Profit and loss account (1,772) (961)Total Equity Shareholders' Funds 6,793 1,304 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2006 31 March 31 March 2006 2005 £000 £000 NET CASH OUTFLOW FROM OPERATING ACTIVITIES (780) (703) RETURNS ON INVESTMENTS AND SERVICING OF FINANCEInterest received and similar income 128 19 TAXATION - - CAPITAL EXPENDITURE AND FINANCIAL INVESTMENTPurchase of tangible fixed assets (1) (2)Purchase of intangible fixed assets (47) (85)Acquisition of investments (604) -NET CASH OUTFLOW FROM CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT (652) (87) ACQUISITIONSNet cash from purchase of subsidiary undertaking - 10Professional costs incurred in purchase of subsidiary undertaking - (89)NET CASH OUTFLOW FROM ACQUISITIONS - (79) NET CASH OUTFLOW BEFORE FINANCING (1,304) (850) FINANCINGIssue of shares 6,581 1,540Expenses and commission paid in connection with share issues (354) (49)NET CASH INFLOW FROM FINANCING 6,227 1,491 INCREASE IN CASH 4,923 641 Notes 1. This statement has been prepared using accounting policies andpresentation consistent with those applied in the preparation of the statutoryaccounts of the Company. 2. The summary accounts set out above do not constitute statutory accountsas defined by Section 240 of the UK Companies Act 1985. The summarised balancesheet at 31 March 2006, the summarised consolidated profit and loss account andthe summarised consolidated cash flow statement for the year then ended havebeen extracted from the company's statutory accounts for the year to 31 March2006 upon which the auditors' opinion is unqualified. The statutory accounts forthe year ended 31 March 2006 were approved by the directors on 7 August 2006,but have not yet been delivered to the Registrar of Companies. 3. The annual report and accounts for the year ended 31 March 2006 will besent by post to all registered shareholders by 7 September 2006. Additionalcopies will be available thereafter from W.I. Link, Hook Rise South, Surbiton,KT6 7LD, UK. Tel +44 (0) 20 8974 0255. Alternatively, the document may be viewed on, ordownloaded from, the Company's website, also from 7 September 2006:www.chacoplc.com This information is provided by RNS The company news service from the London Stock Exchange