H1 2018 Results
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, today announces its unaudited interim results for the six-month period ended 30 June 2018.
Highlights during and post-period:
Accelerating the Portfolio at Low Cost
Robust Financial Positioning
o Prospect S, due to be drilled Q4 2018 by the Ocean Rig Poseidon, has 459mmbbls of gross mean prospective resource, with a further future potential upside of 2.2Bnbbls in other prospects within the Central Blocks licence.
o The well will be operated by Chariot, led by the in-house drilling team.
o Integrated seismic interpretation and Competent Persons Report (“CPR”) completed with a large four-way dip-closed structure identified and a portfolio consisting of seven prospective reservoir targets individually ranging up to 366mmbbls.
o A 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.
o Integration of Rabat Deep 1 well results with proprietary 3D and 2D seismic datasets over the adjacent Kenitra and Mohammedia licences - new portfolio of prospects and leads identified. CPR initiated.
o Drilling preparations underway for priority clastic targets (464mmbbls and 350mmbbls gross mean prospective resources respectively).
Larry Bottomley, CEO of Chariot commented:
“The Chariot team has worked hard to develop and balance the Company's exploration portfolio, focusing on its de-risking strategy and using its technical, commercial and strategic foresight to take advantage of the prevailing business environment. At the same time as maturing the drilling inventory and pursuing our partnering processes on priority prospects, we have focused on progressing our drilling operations to capture the optimum point of the cost cycle. Our participation in the Rabat Deep 1 well in Morocco demonstrated our ability to expose the Company and its shareholders to potentially transformational events at zero cost, and we are pleased to have secured historically low rig rates for the drilling of Prospect S, Namibia, in Q4 2018, following a successful fundraise in March.
Well results from Rabat Deep 1 in Q1 2018 were disappointing, but the information obtained has proven key elements in Chariot's adjacent priority targets, which is anticipated to increase their chance of success and further define prospective resource potential following integrated analysis with proprietary seismic datasets.
The Company is fully funded for all remaining commitments. 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.”
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