Chariot Oil & Gas Net Loss Widens On Mauritania Disposal
September 14 2016 - 2:54AM
Dow Jones News
By Alex MacDonald
LONDON--Atlantic-focused oil and gas explorer Chariot Oil &
Gas Ltd.(CHAR.LN) Wednesday reported a wider net loss for the first
half of the year after incurring an impairment related to the
disposal of its Mauritania exploration license.
The U.K.-listed firm incurred a loss of $5.4 million for the six
months ended June 30, compared with a $4.4 million loss in the same
period a year earlier, primarily due to the relinquishment of its
C-19 licence in Mauritania, resulting in a $5.2 million
impairment.
This was partly offset by a reduction in other administrative
expenses and an unrealised foreign exchange gain from the
strengthening of the Brazilian real on cash held as security
against licence work commitments.
Looking ahead, the company said it has four drill-ready
prospects and plans to drill three wells in the next two years with
its partners.
The first of those wells is likely to be the RD-1 well at the
Rabat Deep prospect in Morocco, which is currently 50% owned and
operated by Chariot Oil although operatorship is currently being
transferred to Italy's Eni SpA (E).
The company is also seeking to secure partners to drill its
recently acquired Mohammedia permits in Morocco, and to drill the
southern blocks in Namibia.
The company said it had a strong balance sheet of $29 million in
cash at the end of June and no debt. It noted that its cash pile
exceeds its license commitments.
Write to Alex MacDonald at alex.macdonald@wsj.com
(END) Dow Jones Newswires
September 14, 2016 02:39 ET (06:39 GMT)
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