TIDMCHAR
RNS Number : 8992U
Chariot Oil & Gas Ld
03 April 2019
3 April 2019
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Award of Lixus Offshore Licence, Morocco
Rebalancing the Chariot portfolio for sustainable growth &
value creation
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas company, is pleased to announce that its wholly
owned subsidiary, Chariot Oil & Gas Holdings (Morocco) Limited,
has been awarded a 75% interest and operatorship of the Lixus
Offshore Licence ("Lixus"), Morocco, in partnership with the Office
National des Hydrocarbures et des Mines ("ONHYM") which holds a 25%
carried interest.
Lixus Offshore Licence, 30km north of Chariot's existing
Moroccan acreage, contains:
-- Anchois-1 well gas discovery - 307 Bcf of 2C contingent
resources offering near-term development opportunity
-- Deeper potential not penetrated by the Anchois-1 well of 116
Bcf 2U prospective resource has also been identified
-- Material tie-back opportunities from low risk, exploration
prospects offer an attractive upside of 527 Bcf of 2U prospective
resources in satellite prospects adjacent to the Anchois
discovery
-- Additional on-block exploration running room in licence
-- World-class commercial contract terms with high gas prices in
a developing market with growing energy demand offers a potentially
high-value project
-- Minimal initial licence commitment funded from current cash
-- Future development anticipated to deliver strong returns and significant cash flow
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 4 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%. A new
independent audit of this discovery by Netherland Sewell and
Associates Inc. ("NSAI") estimates a 2C contingent resource of
307Bcf. A deeper target not penetrated by the well has 2U
prospective resources estimated by NSAI of 116Bcf, 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, three of which have been audited by NSAI,
and Chariot estimate that Anchois and the satellites holding
remaining recoverable resources in excess of 900 Bcf.
An additional five prospects have been identified in Lixus in
similar geological settings as Anchois but currently without the
appropriately conditioned 3D seismic data to confirm comparable
anomalous seismic signature, and these prospects have gross mean
prospective resources ranging from 66 Bcf to 330Bcf, as estimated
by the Company. Seismic reprocessing will be undertaken to reduce
the risk for these additional prospects. NSAI will be preparing a
Competent Persons Report on these prospects and on Anchois N and
Anchois NW. Chariot is also evaluating leads identified in the
section below the Nappe which has the potential for giant scale
prospective resources.
The excellent quality reservoirs in the Anchois discovery offers
the potential for high rate wells and the consequent possibility of
a low-cost development. In combination with excellent commercial
contract terms in a country with high gas prices in a developing
market and growing energy demand, the Anchois discovery offers the
potential for a material, high-value project. The low risk prospect
inventory offers running room with additional, low-cost tie-back
opportunities.
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 through a feasibility study and seek strategic
partnerships and alliances to progress towards a development of the
Anchois discovery.
Larry Bottomley, CEO commented:
"The award of the Lixus licence provides Chariot with a
discovered resource base offering a low-cost development
opportunity and significant upside. The commercial attractiveness
of the Lixus licence is further enhanced by its position offshore
Morocco, a fast growing energy market with high gas prices and a
need for increased supply. In addition to the development
opportunity, the licence offers very low risk exploration tie-back
potential in the same play; and higher risk, transformational lead
potential in the sub-nappe.
Our understanding of the Anchois discovery developed when,
following the results from the geochemical analysis of the
hydrocarbons sampled in the Rabat Deep-1 well, the Company
investigated nearby wells as part of a technical review of
thermogenic hydrocarbons in the region. This insight into the
geology of the surrounding area has enabled us to identify and
capture this immediately value accretive asset.
We are confident that the commercial viability, which will be
fully laid out in the feasibility study being commissioned
immediately, will be highly attractive to a wide range of strategic
partners across the energy value chain.
Finally, I would like to thank the Ministry for their
co-operation in securing this licence and we look forward to
continuing to work with our partner ONHYM."
Investor Conference Call
Investor Conference Call: Management will host a conference call
for investors at 10am (BST) today, 3 April 2019. Dial in details
for the call are shown below and participants should request to
join the "Chariot Oil & Gas - Investor Call".
Dial in number: +44 (0)330 336 9125
Conference Code: 6604394
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, MSc in Petroleum
Geology from Imperial College 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)
Henry Lerwill +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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