AIM-listed Chariot Oil & Gas has received a non-binding Expression of Interest Letter ('EOI') from Africa Finance Corporation ('AFC'), a pan-African Multilateral Development Financial Institution, for the provision of development debt finance for the Anchois Gas Discovery, located within the Lixus Offshore Licence, Morocco, and the development of future discoveries from the wider prospect portfolio of the Licence.
In addition, Chariot has received a non-binding EOI for the provision of Reserves Base Lending for the development of the Anchois Gas Discovery with a Multinational Investment Bank.
Both EOI's take into account the estimated capex required to bring the development online, anticipated to be in the region of US$300-500 million, but they also identify Lixus as being an important strategic asset, with strong Environmental, Social and Governance ('ESG') credentials, that has the potential to help Morocco transition to a low carbon economy, as it seeks to satisfy an anticipated doubling in domestic demand for energy over the next 20 years.
Adonis Pouroulis, Acting CEO, commented:
'Following on from the recent Anchois resource upgrade, I am very pleased to announce that we have received expression of interest letters from two highly regarded institutional lenders. Africa Finance Corporation has played a pivotal role in helping to unlock some of Africa's most promising energy projects, with AFC currently having investments of over US$1 billion in projects ranging from upstream/midstream oil & gas, to power generation. The Multinational Investment Bank is a leading provider of finance in the oil and gas sector with both global reach and profound market expertise within the EMEA region. Both Expression of Interest Letters further endorse our view that the Anchois development is a high value project, with the potential to deliver near term cash flows to Chariot and also transform Morocco's power sector.
Today's announcement is also further evidence of the Company delivering on what it said it would do, namely, advancing the commerciality of the Lixus asset and generating value to shareholders in the process. This is an important first step towards securing financing for the project and we look forward to updating our stakeholders on further developments during the remainder of 2020.'
Source: Chariot Oil and Gas