Chaco Resources Plc (AIM: CHP), the oil and gas explorer and developer focused in South America, announces a placing to raise £1.9m before expenses through the issue of 16.5 million new ordinary shares at 11.5 pence per share. The Company plans to use the proceeds of the Placing to finance further investment in exploration projects in South America and for general working capital. As announced on 19 February the Company’s negotiations with regard to a new exploration project are proceeding satisfactorily and the Company hopes to make a further announcement as soon as practicable.
Application will be made for the new ordinary shares to be admitted to AIM on Monday 5th March 2007. The new ordinary shares will rank pari passu in all respects with the existing ordinary shares which are currently traded on AIM. Following admission of the new ordinary shares, there will be 551,934,554 ordinary shares in issue.
The Company is also pleased to announce the appointment of Giles Clarke as Chairman and Dr. John Wardle as Chief Executive Officer, effective immediately.
Giles Clarke, 53, has considerable experience in the City and a number of commercial interests. He is Chairman and controlling shareholder of Westleigh Investments, a West Country group of businesses. Giles is currently non-executive chairman of Pure Wafer plc, which listed on AIM in 2004, a non-executive director of the England and Wales Cricket Board, a National Council member of the Learning and Skills Council and chairman of several private organisations. He founded Majestic Wine in 1981 and built it into a national chain of wine warehouses. He also co-founded Pet City in 1990, which he expanded nationwide, before being listed and subsequently sold, in 1996, for £150 million. He also co-founded Safestore PLC, and orchestrated the sale of the company to Bridgepoint in 2003.
Dr. John Wardle, 47, has been Chaco’s Resident Manager in Colombia since 2006, where he has responsibility for the implementation of all of Chaco’s operations. He holds a B.Sc. in Mining Engineering from the University of Nottingham and a Ph.D. in Rock Mechanics and Geophysics. He is an experienced drilling engineer, having worked with BP and has held a number of senior management positions with oil exploration companies. Chaco has entered into a strategic joint venture consultancy with Expet S.A. as referred to in the 2006 Annual Report & Accounts.
Jon Pither, currently Chairman, will become Deputy Chairman of the Board following Giles Clarke’s appointment as Chairman.
Jon Pither, said: “The Company has reached the point where its defined near and medium term objectives are close to realisation. There is therefore an exciting programme ahead and it is important that the Company has the continuity of management through this period to optimise shareholder value. We are delighted to welcome Giles and John to the Board. Their wealth of experience from different fields will be a great asset to the Company as we build on our platform for future growth in South America.”
The current Chief Executive Officer, John Morris, will become a non-executive director, having been with the Company since its establishment in 1987 and its admission to AIM in 2004.
Graeme Stephens intends to step down as Technical Director to become a non-executive director on 31 March 2007; and Martin Groak, non-executive director, will be stepping down from his position in April 2007. Jon Pither added: “I would like to take this opportunity of thanking them all for their invaluable work throughout their time at Chaco.”
Dick van den Broek, 68, has been appointed as a consultant to the Company and Adviser to the Chairman. Mr van den Broek worked for 33 years in many different assignments worldwide for Royal Dutch Shell (RDS). His last assignment with RDS was as Regional Director for Latin America & Africa, and a Director of Shell International Petroleum, with full responsibilities for all RDS activities in those continents, both upstream and downstream. These included significant upstream transactions in Colombia, Peru, Argentina and Venezuela, and many negotiations with government bodies throughout the region.
Since his retirement from RDS he has acted as a consultant to various institutions such as to Accenture in Russia and India, to the EBRD for the Romanian oil industry and to CDC in the Philippines.
He is an active participant in institutions focused on Latin America such as Canning House and the Anglo-Venezuelan Society. He is of Dutch nationality, based in London, and has a Masters degree in Economics from Erasmus University in Rotterdam (NL).
Following the above changes, the Board will comprise the following:
Giles Clarke – chairman
Jon Pither – non-executive deputy chairman
Dr. John Wardle – chief executive officer
Nicola Brookes – finance director
Victor Valdovinos – regional director for South America
John Morris – non-executive director
Graeme Stephens – non-executive director
Doug Jendry – non-executive director
Giles Clarke, the new Chairman, said: “I am extremely pleased to be working with Dr John Wardle to develop the exciting opportunities in Colombia which he has successfully negotiated, and Senor Victor Valdovinos in Paraguay. I am also delighted that Dick van den Broek has agreed to join us with his enormous wealth of experience in South America and his wide range of contacts throughout industry and government in the area. We look forward to an exciting future for Chaco".
