Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, today announces its audited final results for the year ended 31 December 2017.
2017 and Post Period Highlights:
Giant Scale Drilling Campaign Initiated
o Rabat Deep 1 well, targeting the JP-1 prospect safely drilled to a total depth of 3,180m
o No hydrocarbon accumulation was encountered but a thick top seal and tight, fractured carbonates in the primary Jurassic target were penetrated
o Electric log cores and side-wall cores are being analysed to understand the implications on the prospectivity of the surrounding area
Robust Financial Positioning
Staying Ahead in a Cyclical Market
Focused Portfolio Management
- Competent Persons Report (“CPR”) of 2016 seismic campaign (culminating in a combined 6,100km2 of 3D seismic data) confirmed five new structural prospects (S, T, U, V and W), ranging from 283 - 459mmbbls in gross mean prospective resources
- Drilling preparations underway for Prospect S (459mmbbls gross mean prospective resources), with the potential to drill W back-to-back in the success case and on partnering
- Datarooms open
- Acquired and processed approximately 1,000km2 3D and 2,250km 2D seismic data over Kenitra and the adjacent Mohammedia licences, interpretation ongoing with information from the Rabat Deep 1 well to be evaluated and calibrated with this data to gain further understanding of the prospectivity in this region
- Drilling preparations underway for Kenitra-1 and LKP-1a Lower Cretaceous priority targets (464mmbbls and 350mmbbls gross mean prospective resources respectively)
- Updated partnering process anticipated to commence in mid-2018, incorporating the results of Rabat Deep 1
- Integrated seismic interpretation and CPR completed with a large four-way dip- closed structure identified
- Portfolio consisting of seven prospective reservoir targets individually ranging up to 366mmbbls
- Single vertical well located at Prospect 1 can penetrate the TP-1, TP-3 and KP-3 stacked targets which have a summed on-licence gross mean prospective resource of 911mmbbls
- Partnering process initiated with dataroom open
Larry Bottomley, Chief Executive of Chariot, commented:
“Over the course of 2017 we continued to deliver on all aspects of our strategy – investing in the lower cost oil price environment through extensive seismic acquisition, processing and interpretation to develop our technical understanding and high impact prospect inventory; completing a drilling partnership with Eni, enabling us to initiate our drilling campaign at no cost to the Company; and locking in additional prospectivity in neighbouring acreage with the successful acquisition of Kenitra, Morocco, as well as securing an innovative back-in option on legacy acreage in Namibia.
Whilst the drilling results of the Rabat Deep 1 well were very disappointing, the information from this well will be integral to de-risking further prospectivity in the region. This well was the first in our current drilling campaign and, with a diversified portfolio, we look forward to additional drilling in the year ahead, where Chariot's high impact portfolio will be tested in the knowledge that, with this wider focus, we have secured follow on potential for the success case, and additional drilling opportunities across a variety of basins and play types.
With no remaining commitments across the portfolio we are in a robust financial position to pursue our new venture strategy as well as focus on maturing our remaining assets at the current low point in the cost cycle. The funds raised earlier this year will allow the Company to deliver a second well in 2018 and strengthen our position in ongoing partnering negotiations, enabling us to protect equity and optimise value whilst gaining third party validation and a share in capital requirements for our priority prospects, S and Kenitra-1.”
Investor Conference Call:
Management will host a conference call for investors at 10.00am (BST) today, 6 June 2018. Dial in details for the call are shown below and participants should request to join the “Chariot Oil & Gas - Private Investor Call”.
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