AMER.L Regulatory News (AMER)

24 May 2007 07:01

Chaco Resources PLC24 May 2007 24 May 2007 CHACO RESOURCES PLC ('Chaco' or 'the Company') Share Placing and Change of Name Chaco Resources plc (soon to be renamed Amerisur Resources plc), the oil and gasexplorer and developer focused in South America, is proposing to raise £15million before expenses, by way of a placing with institutional and otherinvestors, arranged by Blue Oar Securities Plc. 250 million new ordinary sharesof 0.1 pence each in the capital of the Company ("Placing Shares") have beenconditionally placed at 6 pence per new ordinary share. The net proceeds of the placing will enable the new management team, led byGiles Clarke, Non-Executive Chairman, and Dr John Wardle, Chief ExecutiveOfficer, to implement a new strategy focused on advancing projects that areexpected to provide near term value for shareholders. The placing will enablethe Company to: • Complete its initial programme of evaluation and appraisal of the Platanillo discovery in Colombia and commence production, which will require approximately £4.5 million; • Invest approximately £3 million to complete a full 3D seismic evaluation of the Fenix block in Colombia and, should the Company elect to enter Phase 2 to perform initial drilling on that block; • Invest approximately £5 million in new late-stage projects in Colombia where the Directors see a strong probability of production within 12 months of commencement. Within this £5 million, provision is expected to be made for a third well in Platanillo, if appropriate; and • Provide the Company with approximately £1.25 million of working capital. Additionally, the Company intends to make further investments in Paraguay insurface geophysical evaluation and some focused seismic surveys to support theCompany in determining its future strategy in Paraguay. The new ordinary shares will rank pari passu in all respects to existing shares,and the placing is conditional on certain resolutions having been passed at theAGM and on the shares admission to trading on AIM ("Admission"). The AGM isexpected to be held on 28 June 2007 and application will be made for the newordinary shares to be admitted to AIM with trading expected to commence on 29June 2007. On Admission, the Company will have 805,434,554 Ordinary Shares inissue. At the AGM a resolution will be put to shareholders proposing a change of nameto Amerisur Resources plc. The new name reflects the Company's geographic areaof activity. The Company will shortly be sending to its shareholders a circularcontaining a notice in respect of the AGM and an announcement will be made whenthe circular is sent. Giles Clarke, Chairman said: "The new management team is focused on delivering our strategy of providingvalue for shareholders by concentrating on our late stage projects with nearterm production potential to deliver cash flows. We believe that we will startto deliver this during this financial year. "With an outstanding team led by Dr John Wardle in place, stringent geologicaland economic ranking criteria for all new venture opportunities, an innovativeapproach to drilling and production operations, and a clear focus on achievingproduction, we are confident about the Company's future." - Ends - ENQUIRIES: Billy Clegg/Caroline Stewart, Tel: +44 (0)207 831 3113Financial Dynamics Jerry Keen/David Seal/Rhod Cruwys, Tel: +44 (0)20 7448 4400Blue Oar Securities Plc This information is provided by RNS The company news service from the London Stock Exchange