Chaco Resources Raises 1.5 Million through Share Placement

Chaco Resources, the oil and gas explorer and developer focused in South America, has raised £1.5m before expenses, through the placing of 13,636,364 new ordinary shares at 11 pence per share. The placing has been effected to satisfy demand from institutional investors and to provide the Company with further working capital. The placing is conditional on the new shares being admitted to AIM, admission is expected to occur on February 21, 2005.