TIDMCHAR
RNS Number : 1841Q
Chariot Oil & Gas Ld
28 August 2014
28 August 2014
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
New licences granted for Blocks 2312 & 2412A (the Central
Blocks) and Southern Block 2714A, Namibia and Update on Namibian
Portfolio
Highlights:
-- New licence granted for Blocks 2312 and 2412A (the Central Blocks)
-- New licence granted for Southern Block 2714A
o Licences renewed to secure further optionality and strengthen
negotiating position
o Repositioning in line with fast follower and risk management
strategy
o Forward programmes focused on de-risking and realising the
value of the assets
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas exploration company, today announces an update
on its Namibian portfolio, its repositioning in the region and
forward work programmes across these licences. These steps improve
Chariot's negotiating position in partnering discussions and
provide further commercial optionality. The move also aligns this
part of Chariot's portfolio with its strategy of being a fast
follower and managing risk whilst retaining significant equity and
acreage positions. In line with this strategy, Chariot will aim to
proceed towards the drilling phase across its Namibian acreage
following appropriate geological and financial de-risking.
Within the Central blocks, Chariot has been awarded a new
licence (covering blocks 2312 A&B and 2412 A&B (Northern
Halves)), and these have been renamed as blocks 2312 and 2412A. At
the end of August 2014, the preceding licence was due to enter into
the drilling phase. In order to ensure that Chariot is able to
maintain a leveraged position and secure the best possible
commercial terms during partnering negotiations, management
determined that it would be strategically advantageous to remove
this obligation from the licence. As a result, and in alignment
with its partner, AziNam Limited ("AziNam"), the Company chose to
relinquish the licence and secure a new licence with no well
commitment in the Initial Exploration Phase.
As a result of the reapplication and successful re-award of this
licence, Chariot's wholly owned subsidiary, Enigma Oil & Gas
PTY ("Enigma") remains operator with a 65% equity interest in the
blocks, AziNam hold 20% and NAMCOR (the Namibian State Oil Company)
and a local partner, Ignitus Oil and Gas (PTY) hold a 10% and 5%
carried interest respectively. As a result of this new award, the
licence enters the Initial Exploration period which has a duration
of three years and a work programme commitment requiring the
acquisition and processing of up to 1,500km(2) of 3D seismic within
this timeframe. This agreement covers the same area as the previous
licence of 16,800km(2) and commenced as of the 27(th) August
2014.
Industry interest in Namibia remains high with several major oil
companies having recently entered the country. These companies have
entered on seismic options allowing them to act as fast followers.
For this reason, Chariot has also positioned itself in the Central
Blocks in order to provide this optionality to interested parties
that may seek further technical development on the licence prior to
drilling. Discussions with interested parties continue and Chariot
will update the market with progress on partnering as
appropriate.
In the South, as noted in the announcement on the 21(st) July
2014, the partnership of Petrobras, BP and Chariot has elected not
to apply for entry into the Second Renewal Exploration period of
Block 2714A which would have triggered a well commitment. Following
the integration of the Kabeljou well results and recent third party
drilling, Chariot continues to see significant potential within
this Block as well as in the adjacent Block 2714B. As a result, the
Company reapplied for and was awarded Block 2714A, under the new
licence granted to Chariot's wholly owned subsidiary, Enigma
(Operator, 85%), NAMCOR (10%) and Quiver Oil & Gas (PTY)
Limited (5%), the same partner group as for Block 2714B. In doing
this Chariot is now exposed to, and operator of, both the deeper,
Kudu play prospectivity and the Cretaceous fan fairway identified
in the shallower petroleum system within this Southern region.
The licence covers the same area of 5,480km(2) and commenced on
the 27(th) August 2014. The Initial Exploration period has a three
year duration with a work programme requiring the acquisition, or
cost equivalent, of acquiring 2,000 line km of 2D seismic data.
This will allow the Company to evaluate the prospectivity of the
Southern Blocks with a broader view prior to designing its 3D
survey and maturing its prospect selection in this region
further.
In the Northern Blocks, the results of the recently drilled
Welwitschia well are being incorporated with Chariot's proprietary
data to evaluate remaining prospectivity. An update for this
licence area will be provided in due course.
Chariot's dataset in Namibia, which consists of two well results
and 8000km(2) of 3D seismic data, alongside that of third party
activity over the last 18 months, has provided evidence that all
elements of three working petroleum systems are present offshore
Namibia. It is this prospectivity that has encouraged the recent
surge in industry interest and supports Chariot's optimism on the
potential of the region, particularly within the Company's asset
set. With these new licence positions, Chariot retains its large
equity holdings with the ability to deliver transformational growth
while partnering at all future significant phases of
investment.
Larry Bottomley, CEO commented:
"Namibia continues to be a sizeable part of our portfolio and we
see the potential for transformational value within our acreage.
Namibia remains a frontier area for exploration, and managing the
associated risks remains the focus of the Company. These awards
allow us to position our Namibian portfolio as a fast follower, and
continue our strategy of sharing risk through partnering. The
combination of our knowledge, low-level commitments and recently
enhanced financial strength form a solid foundation for our
partnering negotiations and decision making.
We would like to thank the Ministry for its continued support in
granting these new licences in the Central Blocks and Southern
Block 2714A and look forward to working with our partners in
progressing the technical maturity and drilling opportunity in
these regions. These re-awards are indicative of our long standing
relationship with the Namibian government, the work we have carried
out there to date and also our commitment to developing the
exploration sector over the longer term."
For further information please
contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
GMP Securities (Joint Broker)
Rob Collins, Emily Morris +44 (0)20 7647 2835
Jefferies International Limited
(Joint Broker)
Chris Zeal, Max Jones +44 (0)20 7029 8000
Finncap (Nominated Adviser)
Matt Goode, Christopher Raggett +44 (0)20 7220 0500
EMC2 Advisory
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 eight blocks in
Namibia, one block in Mauritania, three 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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