Chariot Oil & Gas Ld Approval of farm-out (5998T)
January 09 2017 - 1:00AM
UK Regulatory
TIDMCHAR
RNS Number : 5998T
Chariot Oil & Gas Ld
09 January 2017
9 January 2017
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Approval of the Farm-Out Agreement with Eni in Rabat Deep
Offshore, Morocco
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, reports that the farm-out
signed between its wholly owned subsidiary, Chariot Oil & Gas
Investments (Morocco) Ltd. and a wholly owned subsidiary of Eni,
which was detailed in the announcement of 30 March 2016, has now
been approved for the Rabat Deep Offshore permits I-VI by the
Moroccan authorities. As a result of this approval, operatorship of
these permits has been transferred to Eni.
The licence ownership is now as follows: Eni (operator, 40%
equity interest), Woodside (25% equity interest), Chariot (10%
equity interest) and Office National des Hydrocarbures et des Mines
("ONHYM") (25% carried interest).
Eni has acquired operatorship and a 40% equity interest from
Chariot in return for a capped carry on drilling the JP-1 prospect
as well as a carry on other geological and administrative costs
relating to Rabat Deep and a recovery of Chariot's investment to
date. The JP-1 prospect, which will be targeted by the RD-1 well,
is a large, four-way dip closed structure of approximately 200
square km areal extent, with Jurassic carbonate primary reservoir
objectives and an independently audited gross mean prospective
resource estimate of 768mmbbls.
Larry Bottomley, CEO commented:
"We are pleased to have satisfied all conditions precedent and
welcome Eni as the operator of the Rabat Deep acreage. We
anticipate that further to completing the Environmental Impact
Assessment, finalising well planning and securing a rig, drilling
will now occur in early 2018.
"This agreement continues to demonstrate Chariot's ability to
deliver on its strategy of securing third-party validation through
partnering, and we are excited that we will now take one of our
priority targets through to drilling. Retaining a 10% equity
interest in this well has the potential to create transformational
value in the success case due to the large scale prospective
resources, excellent contract commercial terms and robust
economics. Success will also materially de-risk other targets we
have identified within our neighbouring Mohammedia permits in which
we hold a 75% interest."
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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