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Chariot Oil & Gas announces H1 2017 interim results - updates operations

13 Sep 2017

  • Approval of Eni farm-in to Rabat Deep Offshore, Morocco, securing a carried well with spud scheduled in Q1 2018.
  • Award of Kenitra Offshore Exploration Permit, Morocco in Q1 2017.
  • Seismic acquisition of 1,027km2 3D and 2,254km 2D over Mohammedia and Kenitra, Morocco.
  • Commenced preparations for drilling in both Namibia and Morocco.
  • Elected not to enter the next phase of exploration in the Southern Blocks, Namibia and secured a 10% equity back-in option for no financial consideration.
  • US$21.7 million in cash as at 30 June 2017, no debt, minimal remaining licence commitments.
Photo - see caption

AIM-listed Chariot Oil & Gas, the Atlantic margins focused oil and gas exploration company, has announced its unaudited interim results for the six-month period ended 30 June 2017.

Highlights during and post-period:

Partnering & Drilling

  • Approval of the farm-out to Eni in Rabat Deep Offshore, Morocco - operatorship now transferred and a carried well (RD-1) secured: spud scheduled for Q1 2018 with the Saipem 12000 ultra-deepwater drilling rig.
  • Drilling preparations initiated and datarooms for potential partners open in Central Blocks, Namibia and in Mohammedia and Kenitra, Morocco.
  • David Brecknock, a highly experienced drilling manager, is joining the management team to oversee the drilling programme.

Portfolio Management

  • Award of Kenitra Offshore Exploration Permit, Morocco in February 2017 - capturing the LKP prospects that extend from Mohammedia into this area and the Kenitra-A lead, all of which have the potential to be significantly de-risked by the drilling of the RD-1 well.
  • Acquisition of 1,027km2 3D and 2,254km 2D seismic over Mohammedia and Kenitra, Morocco in H1, 2017 satisfies all remaining material work programme commitments throughout the entire portfolio.
  • Election not to enter the next exploration phase in the Southern Blocks, Namibia, to focus on higher priority projects. Option with remaining partners to back-in for 10% equity after the completion of future exploration drilling for no financial consideration.
  • Completion of Competent Person's Report ("CPR") following the 2016 seismic campaign (based on 6,100km3 of 3D seismic data) in the Central Blocks, Namibia - identified five new structural prospects, ranging from 283 - 459mmbbls in gross mean prospective resources.

Capital Discipline

  • Robust balance sheet with US$21.7 million in cash as at 30 June 2017 and no debt.
  • Minimal work commitments throughout portfolio; all fully funded.
  • Continued capital discipline with half-year costs on track to achieve an annual cash overhead of less than US$5m.
  • Continued prudent use of funds to develop the portfolio in a weakened business environment with a rigorous approach adapted for seismic tendering and other contract selection processes.

Asset Outlook

  • Target to drill three wells in the near-term in the Moroccan and Namibian licence areas.


  • Rabat Deep: spud anticipated on the JP-1 prospect (768mmbbls gross mean prospective resources) in the latter part of Q1 2018. This well has the potential to de-risk an additional 6 Jurassic leads ranging from 119 to 1,041mmbbls gross mean prospective resources in the Rabat Deep permits.
  • Mohammedia and Kenitra: processing of the 2D and 3D seismic campaign, acquired in Q1 2017, across the south of the greater LKP area and Kenitra is ongoing with interpretation to commence thereafter.
  • LKP-1a (Mohammedia Permits) is drill-ready with the 1,027km2 3D campaign targeting additional prospectivity in this area and to mature the Kenitra-A lead (Kenitra Permit) to drill ready status. Preparation for drilling underway and a dataroom across both licences currently open.


  • Central Blocks: Preparation for H2 2018 drilling underway with Prospect S (gross mean prospective resources 459mmbbls) identified as a priority prospect - additional partner participation process ongoing with a dataroom open.


  • Detailed seismic interpretation continues with a defined prospect and lead inventory anticipated to be completed for the opening of a dataroom in Q4 2017.
  • Continue to develop a sustainable conveyor belt of giant drilling opportunities, leveraging knowledge of the Atlantic margins to access giant potential new venture opportunities.

Larry Bottomley, CEO of Chariot commented:

'As a result of rigorous and continued focus on risk management and capital discipline, Chariot has been able to use a strong cash position and clear strategic objectives to continue to invest in the portfolio despite the prevailing "lower for longer" oil price business environment. During the period, we have continued to use our technical capabilities and regional insight to secure follow-on potential with the new venture asset, Kenitra, in Morocco; shoot 2D and 3D seismic campaigns at favourable rates to mature this and the Mohammedia acreage; and, in looking towards realising the potential within the portfolio, initiated the preparation for drilling over priority prospects.

'At the same time we have succeeded in securing a drilling partner on our Rabat Deep acreage, Morocco, with the farm-out to Eni completed in January. With the RD-1 well now carried and due to spud in the latter part of Q1 2018, our near-term focus will be to secure partners on additional priority prospects in Namibia and Morocco. We also have great pleasure in welcoming David Brecknock to the leadership team to increase our drilling operating capability which, with success, will enable us to realise transformational value. At the same time, we will continue to use our strategic discipline to develop our portfolio for long-term sustainable growth'.

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Source: Chariot Oil & Gas

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