Memorandum of Understanding

10 Mar 2005 12:11

Chaco Resources PLC10 March 2005 CHACO RESOURCES PLC ("the Company") Memorandum of Understanding The directors of Chaco Resources plc are pleased to announce the signing lastnight of a Memorandum of Understanding with Expet S.A., a company based inColombia, to form a joint venture entity that will seek to acquire hydrocarbonexploration and production contracts in Colombia. Definitive agreements have yet to be negotiated and are subject to suitableopportunities of a scale appropriate to the Company being identified andsecured. Any such activities will be complementary to the Company's continuingexploration activities in Paraguay. Enquiries:- Martin Groak, Finance DirectorChaco Resources plc Tel No:- 07949 209 301 Marc YoungDaniel Stewart & Company plc Tel No:- 0207 374 6789 This information is provided by RNS The company news service from the London Stock Exchange