Chariot Oil & Gas Ld Mauritanian New Venture Back-in Option with Shell (4225V)
July 23 2018 - 6:54AM
UK Regulatory
TIDMCHAR
RNS Number : 4225V
Chariot Oil & Gas Ld
23 July 2018
23 July 2018
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Mauritanian New Venture Back-in Option with Shell in Block
C-19
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today announces that,
through its wholly owned subsidiary Chariot Oil & Gas
Investments (Mauritania) Limited, it has secured an option to
back-in for between 10% to 20% equity in the C-19 block in
Mauritania that has recently been awarded to Shell Exploration and
Production Mauritania (C19) B.V., part of the Shell Group of
Companies ("Shell").
Background:
Chariot secured an exploration licence over the C-19 block in
Mauritania in June 2012. The Company subsequently acquired
3500km(2) of 3D seismic data and undertook extensive reprocessing
of legacy 2D seismic data which led to the identification of a
significant resource base in a number of plays, prospects and
leads. The work undertaken by Chariot to derisk this block resulted
in significant interest in farm-out data rooms from a number of
potential partners, however the prevailing industry sentiment in a
low-price environment was such that these did not lead to a
transaction. As a consequence, in June 2016 the Company elected not
to enter the First Renewal Phase which carried a well
commitment.
Back-in Option:
In the intervening period Chariot has been working with Shell,
SMHPM (the Mauritanian State oil company and a 10% partner in Block
C-19) and the Mauritanian Ministry of Petroleum, Energy and Mines
to secure a new exploration and production contract over the C-19
block. In recognition of the expertise and knowledge developed by
the Chariot technical team and the potential contribution they can
make through this expertise, Shell has offered the Company the
option to back-in for a working interest of between 10% to 20%
equity in the C-19 block at a future date, subject to the customary
regulatory approval by the Mauritanian Ministry of Petroleum,
Energy and Mines.
The Company is currently considering the merits of exercising
this back-in option right and will up-date the market following any
further material decision taken.
Larry Bottomley, CEO commented:
"The focus for Chariot is the delivery of transformational value
through the discovery of material hydrocarbon accumulations.
Chariot considers the C-19 block has the potential to deliver
material hydrocarbon accumulations. The focus of our evaluation of
the option will be on value, portfolio balance, risk management and
capital discipline.
We would like to thank Shell for their constructive approach,
participation and leadership in the process of securing the C-19
block, SMHPM for their continuing support of our partnership and
the Ministry of Petroleum, Energy and Mines for facilitating our
attempts to progress exploration on this licence.
Securing this option is a testament to the quality of the
technical team and the tenacity of the organization."
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 (Corporate
Finance) +44 (0)20 7220 0500
Celicourt Communications (Financial
PR)
Henry Lerwill +44 (0)207 520 9261
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, three blocks in Morocco and four blocks 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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