Chariot Oil & Gas Ld Update on farm-out agreement with Azilat (5719N)
May 19 2015 - 2:01AM
UK Regulatory
TIDMCHAR
RNS Number : 5719N
Chariot Oil & Gas Ld
19 May 2015
19 May 2015
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Update on farm-out agreement with AziLat, a subsidiary of
Azimuth
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today announces that the
farm-out agreement with AziLat Limited ("AziLat") on the BAR-M-292,
BAR-M-293, BAR-M-313 and BAR-M-314 licences (the "Licences") in the
Barreirinhas basin, Brazil has been terminated.
Since initial agreement, which was announced on 20 August 2014,
AziLat has requested amendments to the commercial terms of the
farm-out which are unacceptable to Chariot as they do not reflect
the high potential of the assets and are therefore not in the
interests of the Company nor its shareholders. As a result, AziLat
will no longer acquire a 25% working interest in the Licences. The
final equity transfer to AziLat was still awaiting the fulfilment
of certain conditions precedent, including the granting of formal
approval from the Brazilian authorities, and this process has now
been discontinued.
Within its Licences, which are conjugate to proven basins in
Cote d'Ivoire and Ghana, Chariot has identified evidence of
sufficient burial of the Cenomanian-Turonian source rock for
hydrocarbon generation, supported by potential seismic direct
hydrocarbon indicators. In addition, a large roll-over structure
has been identified with deep-water turbidite seismic facies and
fan entry points. Chariot anticipates 10 wells to be drilled in
this basin, one in the adjacent block. Given its fast follower
positioning, this activity will occur with sufficient time for
Chariot to integrate its proprietary 3D data with that of third
party drilling results, prior to entering its own drilling
commitment. A dataroom remains open for interested parties.
Chariot is fully funded for all of its commitments with a strong
cash balance of US$53.5 million (as at 31 December 2014) and the
Company's Brazilian 3D seismic programme over the Licences remains
planned for H2 2015.
Larry Bottomley, CEO commented:
"Whilst it is disappointing that we will not be moving forward
with AziLat in our exploration efforts offshore Brazil, we remain
committed to our plans here and will continue to seek a technically
competent and financially secure partner for these licences. In the
meantime, we will retain a focus on risk management and capital
discipline. With its long licence duration and strong cash balance,
Chariot has the time and financial flexibility to pursue its stated
objectives."
For further information please contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
GMP Securities (Joint
Broker)
Rob Collins, Emily Morris +44 (0)20 7647 2835
Jefferies International
Limited (Joint Broker)
Chris Zeal, Max Jones +44 (0)20 7029 8000
Finncap (Nominated Adviser)
Matt Goode, Christopher
Raggett +44 (0)20 7220 0500
EMC2 Advisory
Natalia Erikssen +44 (0)78 0944 0929
NOTES TO EDITORS
About Chariot
Chariot Oil & Gas Limited is an independent oil and gas
exploration group. It holds licences covering four blocks in
Namibia, one block in Mauritania, three blocks in Morocco and four
licences in the Barreirinhas Basin offshore Brazil. All of these
blocks are currently in the exploration phase.
The ordinary shares of Chariot Oil & Gas Limited are
admitted to trading on the AIM Market of the London Stock Exchange
under the symbol 'CHAR'.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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