Chariot Oil & Gas Ld AGM Statement (2073D)
July 05 2016 - 1:00AM
UK Regulatory
TIDMCHAR
RNS Number : 2073D
Chariot Oil & Gas Ld
05 July 2016
5 July 2016
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
AGM Statement
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margin
focused oil and gas exploration company, will be holding its Annual
General Meeting at 10.00am today at the offices of finnCap, 60 New
Broad Street, London, EC2M 1JJ.
At the meeting, Larry Bottomley, Chief Executive Officer, will
also provide a brief portfolio overview from the Corporate
Presentation that is available on the Company website
(www.chariotoilandgas.com). There will be no new material
information disclosed.
The past year has continued to pose challenges for the whole oil
and gas sector but Chariot has made further progress within this
environment, notably securing a drilling partner in Eni for the
Rabat Deep licence in Morocco, signing Exploration Permits over the
Mohammedia licence, also in Morocco, and acquiring substantial 3D
seismic programmes in both Brazil and Namibia. Capital discipline
has also continued to be a focus for the Company and this was
reflected in the corporate restructuring announced in May, reducing
the payroll by approximately a third. The Company remains
financially robust and fully funded for its work programmes.
The partnering agreement with Eni for the drilling of the JP-1
prospect (which will be drilled by the RD-1 well) was a significant
milestone in delivering on the strategy. To secure a partner with a
world-class reputation in exploration was a strong endorsement of
Chariot's technical view of the asset and the team looks forward to
the opportunity of drilling this prospect alongside Eni, Woodside
and ONHYM, which is expected to occur next year.
The signing of the Exploration permits in Mohammedia, the
licence adjacent to Rabat Deep where the RD-1 well is to be
drilled, demonstrates Chariot's intent to secure and develop other
prospectivity within its portfolio. As Operator with a 75%
interest, Chariot will now plan and undertake 2D and 3D seismic
programmes to enhance the description of the JP-2 and LKP targets
in this acreage. A successful result from the RD-1 well will
further de-risk the prospects here so this offers significant
follow-on potential.
Securing partners through major investment phases is key to
managing risk and allocation of capital and careful portfolio
management ensures that the Company retains the ability to pursue
assets that will yield drilling opportunities. Chariot announced in
June 2016 that it had elected not to enter into the next phase for
the C-19 licence in Mauritania. This decision was taken in line
with its stated strategy as the Company was unable to move into
this phase without a definitive partner in place. Whilst this was
disappointing, Chariot has to adhere to strict discipline in the
current environment and despite not attracting funding for a well,
substantially achieved zero-cost exploration here.
Chariot has been one of the few exploration companies which has
conducted sizeable 3D seismic programmes in the past few months and
these were completed in Q1 both in Namibia and Brazil. Throughout
the year, many oil and gas companies have continued to cut capex
and exploration budgets which has resulted in a significant fall in
service costs, and Chariot has been able to capitalise on these
reductions. The data acquired is currently being processed and will
be interpreted in-house. In Brazil, this programme covered
Chariot's entire licence acreage and in Namibia the programme
focused on the north western flank of the licence to mature leads
identified by its previous 2D survey.
As announced in the Corporate Update released in May 2016,
Matthew Taylor is retiring by rotation as a Director of the Board
of Chariot today. Matthew has been an important member of the team
and Board for many years, integral to the Company's portfolio
development and technical excellence, and Chariot is very pleased
that he will continue to play a key consulting role going
forward.
Chariot remains financially robust, fully funded for its work
programmes (the seismic programmes in Mohammedia being the only
remaining licence commitments) but will continue to guard its cash.
Chariot's asset potential is still highly prospective in the
current environment but there is an ongoing need to weather the
'lower for longer' oil price and position the Company for success
accordingly. The Company looks forward to the potential for
transformational drilling in 2017.
- Ends -
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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