Successful oil well will be ‘transformational’

13 September 2018 | Business

Jo-Maré Duddy – The scale of Chariot Oil & Gas’ Prospect S oil well offshore Namibia will be “transformational” to the company in itself if it is successful, the AIM-listed group said yesterday.

“But it is the fact that this, and every other asset within Chariot's portfolio, has considerable follow-on potential which makes the upside in Chariot's offering particularly unique. Whilst Chariot's share of the well is fully funded, we continue to seek a partner that would liberate the company's funds, depending on the outcome of the well, for a subsequent appraisal programme or additional exploration drilling,” Chariot said in its latest half-year results.

“Datarooms are open across the matured portfolio and we look forward to the drilling of a safe, efficient and cost effective well in Prospect S, which has the potential, in the success case, to realise substantial value and expose shareholders to additional upside from the additional resource in the inventory of prospects within the licence. Concurrently, we will continue refining our broader prospect inventory and remain vigilant to value accretive opportunities," Larry Bottomley, chief executive officer of Chariot, said.

Chariot’s equity fund-raise, completed in the first quarter of this year, raised an additional net US$16.5 million providing funding for the drilling of Prospect S.

Prospect S

Independent estimates by Netherland Sewell Associated Inc. indicate Prospect S has a gross mean prospective resource of 459 million barrels (mmbbls) and a probability of geologic success of 29%.

Chariot, an Atlantic margins focused oil and gas exploration company, recently announced that it secured the Ocean Rig Poseidon to drill Prospect S in the fourth quarter of 2018.

The company yesterday said Prospect S is one of five dip-closed structural traps, totalling 1,758mmbbls gross mean prospective resources, that have been identified in the Upper Cretaceous turbidite clastic play fairway in the Central Blocks, Namibia.

Chariot’s latest results show the Group is debt free and had a cash balance of US$28.4 million at 30 June 2018, up nearly 31% compared to the same half-year in 2017.

As at 30 June 2018 the net book values of Chariot’s Central Blocks offshore Namibia were US$51.1 million, up from US$50.5 million at the end of December 2017.

Chariot is the operator of the Central Blocks licence offshore Namibia. It has a 65% interest, followed by AziNam with 20%, Namcor with 10% and Ignitus with 5%.

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