AMER.L Regulatory News (AMER)

26 Aug 2005 07:00

Chaco Resources PLC26 August 2005 CHACO RESOURCES PLC PRELIMINARY STATEMENT FOR THE YEAR ENDED 31 MARCH 2005 HIGHLIGHTS: • June 2004: Company refocus on oil & gas exploration in South America • July 2004: Company changes its name to Chaco Resources Plc • November 2004:Company confirms acquisition of Amerisur S.A. and Bohemia S.A., two Paraguayan companies with applications for hydrocarbon exploration and production concessions in Paraguay • November 2004: Douglas Jendry and Victor Valdovinos are appointed to the Board • March 2005: Company signs Memorandum of Understanding with Expet S.A. to seek to acquire hydrocarbon exploration and production concessions in Colombia • August 2005: Paraguay subsidiary granted two exploration and production concessions - San Pedro and Curupayty areas, totalling 2.3 million hectares Chairman's Statement In the year covered by this report, the Company has been completely refocusedtowards oil and gas exploration and development in South America. I am pleasedto report that considerable progress has been achieved. Our initial targets were identified in certain areas of Paraguay, which,incidentally, accounts for your Company's new name, adopted in July last year.The Chaco Boreal is a substantial area in northern Paraguay, abutting the borderwith Bolivia. Interestingly, it is an area over which a war was fought between1932 and 1935 because of a belief that it was rich in oil. Chaco has been drawn to this region because of its potential for commercial oilaccumulations. During the year, we acquired two Paraguayan companies: AmerisurS.A., which has just received government sanction for two exploration andproduction concessions, and Bohemia S.A., which has a permit application inprogress over a single, larger area. Assuming this latter application issuccessful, your Company will control three exploration and production areascovering a total of approximately 47,000 square kilometres of the Curupayty andParana Basins. These basins extend into Bolivia and Brazil, where commercial oiland gas production has been established for many years from similar geologicalsections. The change of direction for your Company will, I believe, expose us to greateropportunities for wealth creation. Oil is trading close to its all-time high,and demand in the fast-growing economies of South America is strong for bothliquid fuels and natural gas. We are confident that any discovery, even of amodest size, will develop quickly to take advantage of demand by utilising theextensive and rapidly expanding pipeline and refining capacity in the region. Despite being host to five sedimentary basins, Paraguay has little significantoil and gas production. Only 48 oil exploration wells have ever been sunk; thelast in 1995. Geological understanding of the basins has increased substantiallyin recent years, as has oil exploration and drilling technology. It issignificant to note that of the 48 wells drilled almost half (22) reported showsof oil and/or gas. I used the word 'initial' earlier for a good reason. Your board sees theacquisition of the interests in Paraguay as just the start for Chaco Resources.It is also significant that we have entered into a memorandum of understandingwith Expet S.A. to form a joint venture that is seeking exploration anddevelopment assets in another South American country, Colombia. Colombia, as many of you will know, has a much more extensive record of oil andgas production and is rated as one of the most prolific producers of thecontinent. If we are successful in securing access to tenements in that countryit will expose your Company to significant opportunities. To reflect the new direction of our business I welcome to the board Mr VictorValdovinos, a Paraguayan resident and highly-regarded legal advisor in thatcountry, and Mr Douglas Jendry, an Australian geologist with extensiveexperience in the oil exploration business. Furthermore, in the event that we doobtain assets in Colombia, Graeme Stephens, who was formerly Lasmo's chiefexecutive there and who has been advising us, has agreed to join the board tooversee that operation. These new directors are extremely valuable additions tothe board and reflect our continuing re-evaluation of the board's composition. As a final comment, I would like to express my gratitude to the way our smallmanagement team has handled several very difficult years. Sardinia was anextremely frustrating experience for everyone involved, but it is a measure ofour determination to succeed that we have shaken off that experience, regrouped,and found a new way ahead for your Company. I look forward to Chaco Resources enjoying significant success with its newfocus on the oil and gas industry. JON PITHER Chairman CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2005 12 months 15 months to 31 March 2005 to 31 March 2004 £000 £000 Turnover - - Administrative expenses (672) (674) --------- --------- Operating loss:Continuing operations (634) (674)Acquisitions - Paraguay (38) - --------- --------- (672) (674) Exceptional item - write off of debtorfrom former group undertaking (318) - Exceptional item - disposal ofinvestment - (8,119) Net interest receivable 19 - --------- --------- Loss on ordinary activities beforetaxation (971) (8,793) Tax on loss on ordinary activities - - --------- --------- Loss for the financial period (971) (8,793) Dividends - (4,830) --------- ---------Retained loss attributable toshareholders (971) (13,623) ========= ========= Loss per share - basic (0.27)p (3.25)pLoss per share - fully diluted (0.27)p (3.25)p STATEMENT OF TOTAL RECOGNISED GAINS ANDLOSSES Loss for the financial yearattributable to members (971) (13,623) --------- ---------Total recognised gains and lossesrelating to the year (971) (13,623) ========= ========= BALANCE SHEETS AS AT 31 MARCH 2005 Group Group Company Company 31 March 2005 31 March 2004 31 March 2005 31 March 2004 £000 £000 £000 £000 FIXED ASSETSIntangibleassets 651 - 85 -Tangibleassets 2 - - -Investments - - 589 - -------- --------- -------- -------- 653 - 674 - CURRENT ASSETSDebtors 58 360 108 360Cash at bankand in hand 642 1 607 1 -------- --------- -------- -------- 700 361 715 361 Creditors:amountsfalling duewithin oneyear (49) (77) (49) (77) -------- --------- -------- --------NET CURRENTASSETS 651 284 666 284 -------- --------- -------- --------TOTAL ASSETSLESS CURRENTLIABILITIES 1,304 284 1,340 284 ======== ========= ======== ======== CAPITAL ANDRESERVESCalled upshare capital 390 274 390 274Shares to beissued 500 - 500 -Other reserves 1,375 - 1,375 -Profit andloss account (961) 10 (925) 10 -------- --------- -------- --------Total EquityShareholders'Funds 1,304 284 1,340 284 ======== ========= ======== ======== CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2005 12 months to 31 March 15 months to 31 March 2005 2004 £000 £000 NET CASH OUTFLOW FROMOPERATING ACTIVITIES (703) (738) --------- --------- RETURNS ON INVESTMENTS ANDSERVICING OF FINANCEInterest received 19 - TAXATION - - CAPITAL EXPENDITURE ANDFINANCIAL INVESTMENTPurchase of tangible fixedassets (2) -Purchase of intangible fixedassets (85)Decrease in borrowings - (261) --------- ---------NET CASH OUTFLOW FROM CAPITALEXPENDITUREAND FINANCIAL INVESTMENT (87) (261) --------- --------- ACQUISITIONSNet cash from purchase ofsubsidiary undertaking 10 -Professional costs incurred inpurchase of subsidiaryundertaking (89) - --------- ---------NET CASH OUTFLOW FROMACQUISITIONS (79) - --------- ---------NET CASH OUTFLOW BEFOREFINANCING (850) (999) FINANCINGIssue of shares 1,491 1,000 --------- ---------NET CASH INFLOW FROM FINANCING 1,491 1,000 --------- --------- INCREASE IN CASH 641 1 ========= ========= Notes 1. This statement has been prepared using accounting policies and presentation consistent with those applied in the preparation of the statutory accounts of the company. 2. The summary accounts set out above do not constitute statutory accounts as defined by Section 240 of the UK Companies Act 1985. The summarised balance sheets at 31 March 2005, the summarised consolidated profit and loss account, the summarised consolidated cash flow statement and the summarised consolidated statement of total recognised gains and losses for the year then ended have been extracted from the company's statutory accounts for the year to 31 March 2005 upon which the auditors' opinion is unqualified. The statutory accounts for the year ended 31 March 2005 were approved by the directors on 26 August 2005, but have not yet been delivered to the Registrar of Companies. 3. The annual report and accounts for the year ended 31 March 2005 will be sent by post to all registered shareholders by the 7th September 2005. Additional copies 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, or downloaded from, the Company's website, also from 7th September 2005: www.chacoplc.com This information is provided by RNS The company news service from the London Stock Exchange