Chariot Oil & Gas Ld Pre-Close Operational Update (8953R)
December 15 2016 - 2:00AM
UK Regulatory
TIDMCHAR
RNS Number : 8953R
Chariot Oil & Gas Ld
15 December 2016
15 December 2016
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Pre-Close Operational Update
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today provides a pre-close
operational update prior to its year end 31 December.
Over the past 12 months Chariot has continued to progress and
enhance its portfolio whilst protecting its position in challenging
market conditions. As a result of a combination of prudent cash
management, partnering, securing new acreage and maturing the
portfolio while capitalising on current seismic costs, Chariot has
been able to preserve a strong cash position while developing an
inventory of drill-ready prospects with material follow-on
potential.
Chariot expects an unaudited cash position at year-end of
approximately US$25 million. The Company remains debt free with
cash in excess of licence commitments.
In Morocco, Chariot was pleased to announce the farm-in of Eni
into the Rabat Deep Offshore Exploration Permits I-VI. The licence
operatorship will be transferred to Eni on final government
approval which will trigger the recovery of Chariot's back costs.
The Rabat Deep partnership will be drilling the JP-1 prospect with
the RD-1 well and drilling is now expected to occur in early 2018.
This prospect has audited gross mean prospective resources of
768mmbls, which will be transformational to the Company in the
success case.
Chariot was also pleased to be awarded the Mohammedia Offshore
Exploration Permits I - III (Chariot, 75% equity and operator),
which are adjacent to the Rabat Deep licence area. The plays in
Mohammedia have the potential to be significantly de-risked by the
drilling of the RD-1 well. The team has identified material
prospectivity in the JP-2 prospect and other prospects in the
shallower Lower Cretaceous play which have a combined gross mean
prospective resource in the region of 1 billion barrels. Chariot
will be acquiring 3D seismic in the early part of next year to
investigate the extension of the Lower Cretaceous play into a
region with no current seismic coverage.
Offshore Namibia, Chariot acquired and processed 2,600km(2) of
3D data in the Central Blocks (2312 and 2412A) and these data are
now being interpreted by our technical team. As noted in the
Interim Results, initial evaluation confirms the potential of these
blocks which are undergoing in-depth analysis and detailed
interpretation. Following the completion of this interpretation, a
partnering process will be initiated next year.
Also in Namibia, the partnering process in the Southern Blocks
(2714A and 2714B) is ongoing with the data room currently open and
showcasing the newly identified AO-1 and AO-2 prospects. In the
latest Competent Person's Report, Netherland Sewell Associates Inc.
has assigned 8.1Tcf and 2.2 Tcf of gross mean prospective resource
respectively to these prospects.
In Brazil, proprietary acquisition and processing of the
775km(2) of 3D data across the four Chariot concessions is complete
and interpretation of these data has been initiated. This technical
evaluation will focus on describing reservoir distribution and
identifying key prospects in light of the upcoming third party
exploration programmes within the Barreinhas region. Partnering on
these licences is expected to commence in H2 next year following
completion of the interpretation.
The Company continues to evaluate new venture opportunities to
further enhance the portfolio through the addition of value
accretive assets.
Larry Bottomley, CEO commented:
"We have made significant progress throughout the year,
proactively pursuing our exploration programmes, completing another
farm-out, maturing our current portfolio and securing further
prospective acreage in line with our strategy of rigorous portfolio
management and capital discipline. As we reported at the time of
our interim results, we are now focused on delivering three
exploration wells in the next two years. We expect the tough market
conditions to continue into the next year but Chariot has
established a strong position within this environment which will
allow us to deliver on our plans."
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
For further information please contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser and Joint Broker)
Matt Goode, Christopher Raggett +44 (0)20 7220 0500
Peel Hunt (Joint Broker)
Richard Crichton, Ross Allister +44 (0)20 7418 8900
EMC(2) Advisory (Media Contact)
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, two 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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