TIDMCHAR
RNS Number : 3958Y
Chariot Oil & Gas Ld
09 May 2019
9 May 2019
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Competent Persons Report on the Anchois Discovery, Morocco
Remaining recoverable resources upgraded to in excess of 1 Tcf
of gas
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas company, is pleased to announce the completion
of the independent Competent Persons Report ("CPR") by Netherland
Sewell & Associates Inc. ("NSAI") over the satellite prospects
adjacent to the Anchois-1 gas discovery in the Lixus Offshore
Licence ("Lixus"), Morocco.
-- Upgrade of audited total remaining recoverable resource to be
in excess of 1 Tcf for Anchois and its satellite prospects
(comprising 2C contingent resources and 2U prospective
resources)
-- Anchois North confirmed as the low risk priority satellite
prospect with 308 Bcf of 2U prospective resources with a
probability of geological success of 43%
-- Further CPR on additional five prospects in Lixus licence to
be completed after the 3D seismic reprocessing project
Larry Bottomley, CEO commented:
"This independent third party evaluation confirms that the
Anchois discovery and its nearby satellite prospects presents
Chariot with an exciting and commercially attractive development
opportunity. The combination of a de-risked resource base in a
fast-growing energy market, with high gas prices and a need for
increased supply is highly attractive to a wide range of strategic
partners throughout the energy value chain.
We anticipate a period of sustained news flow on this exciting
project going forward, which should further unlock the value of the
Lixus licence, with the results of the feasibility and gas market
studies expected to be announced in due course."
Further Information
Chariot, through its wholly owned subsidiary, Chariot Oil &
Gas Holdings (Morocco) Limited, has a 75% interest and operatorship
of the Lixus Offshore Licence, Morocco, in partnership with the
Office National des Hydrocarbures et des Mines ("ONHYM") which
holds a 25% carried interest.
Lixus licence covers an area of approximately 2,390km(2) , 30km
north of Chariot's existing Moroccan acreage, with water depths
ranging from the coastline to 850m. The area has been subject to
earlier exploration with legacy 3D seismic data covering
approximately 1,425km(2) and four exploration wells, including the
Anchois gas discovery.
The Anchois-1 well was drilled in 2009 in 388m water depth some
40km from the coast and encountered an estimated net gas pay of 55m
in two sands with average porosities ranging from 25% to 28%. An
independent audit of this discovery by NSAI estimates a 2C
contingent resource of 307 Bcf. A deeper target not penetrated by
the well has 2U prospective resources estimated by NSAI of 116 Bcf,
with the Anchois discovery containing a remaining recoverable
resource of 423 Bcf.
The Anchois discovery is in Tertiary-aged turbidite reservoirs
that occur above a nappe emplaced during the Alpine orogeny and the
pay sands have a characteristic and anomalous seismic signature.
The Company has identified five satellite prospects to Anchois that
have tie-back potential, all of which have now been audited by
NSAI, giving Anchois and the satellites total remaining recoverable
resources in excess of 1 Tcf.
The excellent quality reservoirs in the Anchois discovery offer
the potential for high rate wells and the consequent possibility of
a low-cost development. The combination of excellent commercial
contractual terms, high domestic gas prices and growing energy
demand mean the Anchois discovery offers the potential for a
material, high-value project. Furthermore, the low risk prospect
inventory offers running room for additional, low-cost tie-back
opportunities.
The table below summarises the results of the CPR on Anchois and
its satellite prospects.
Field / Prospect Unrisked Gross (100 percent) Probability
Contingent Gas resources* of Geologic
(Bcf) Prospective Gas resources Success
(Bcf) (Pg)
-------------------------------
1C* 2C* 3C* Mean
------------------------------- ------- --------- --------- --------
1U 2U 3U Mean
-------------------------------
Anchois Discovery
------------------------------- --------- ---------
Anchois A sand* 45 107 143 100 N/A
------- --------- -------- -------------
Anchois B sand* 111 201 290 201 N/A
------- --------- -------- -------------
Anchois Contingent Resource* 156 307 433 301 N/A
------- --------- --------- -------- -------------
Anchois Deep (C sand) 56 116 172 115 N/A
------- --------- -------- -------------
Anchois Remaining Recoverable
Resource 212 423 605 416 N/A
Anchois Satellites
------------------------------- --------- ---------
Anchois N 140 308 492 297 43%
------- --------- --------- -------- -------------
Anchois W 45 89 134 86 35%
------- --------- --------- -------- -------------
Anchois NW 10 29 51 28 34%
------- --------- --------- -------- -------------
Anchois SW 42 101 165 98 28%
------- --------- --------- -------- -------------
Anchois WSW 22 61 110 60 23%
------- --------- --------- -------- -------------
Anchois & Anchois Satellites
Remaining Recoverable
Resource 470 1011 1556 985
------- --------- --------- -------- -------------
An additional five prospects have been identified in Lixus in
similar geological settings as Anchois, but are currently without
the appropriately conditioned 3D seismic data to confirm comparable
anomalous seismic signature. The Company estimates these prospects
to have gross best estimate prospective resources ranging from 66
Bcf to 330 Bcf. Seismic reprocessing will be undertaken to reduce
the risk for these additional prospects after which a CPR is to be
conducted on these prospects. Chariot is also evaluating leads
identified in the section below the Nappe, which has the potential
for giant scale prospective resources.
The initial licence commitment, for which the Company is fully
funded, includes a technical programme of 3D seismic reprocessing
and evaluation to access the additional exploration potential of
Lixus. Chariot will also further evaluate the gas market, test
development concepts and seek strategic partnerships and alliances
to progress towards a development of the Anchois discovery.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Qualified Person Review
This release has been reviewed by Duncan Wallace, Exploration
Manager of Chariot, who is a petroleum geologist with over 15
years' experience in petroleum exploration. He holds an MSc in
Petroleum Geology from Imperial College, is a fellow of the
Geological Society of London and a member of the Petroleum
Exploration Society of Great Britain. Mr Wallace has consented to
the inclusion of the technical information in this release in the
form and context in which it appears.
For further information please contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser and Broker)
Matt Goode, Christopher Raggett, Anthony Adams
(Corporate Finance) Andrew Burdis (ECM) +44 (0)20 7220 0500
Celicourt Communications (Financial PR)
Jimmy Lea +44 (0)207 520 9261
NOTES TO EDITORS
ABOUT CHARIOT
Chariot Oil & Gas Limited is an independent oil and gas
company focused on the Atlantic margins. It holds exploration
licences covering two blocks in Namibia, three blocks in Morocco
and four blocks in the Barreirinhas Basin offshore Brazil.
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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