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    Chariot Seeks Partners for Namibia

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Summary

Chariot Oil & Gas’s first half loss widened in 2016 to $5.4mn but the debt-free Atlantic margin explorer brought in Eni as a partner offshore Morocco.

by: Mark Smedley

Posted in:

Natural Gas & LNG News, Africa, Europe, Corporate, Exploration & Production, News By Country, Brazil, Mauritania, Morocco

Chariot Seeks Partners for Namibia

UK-listed Chariot Oil & Gas’s first half loss widened in 2016 to $5.4mn, from $4.4mn a year ago, but the debt-free Atlantic margin explorer successfully farmed out some of its deepwater Moroccan acreage to Italy's Eni. The increased loss was due to Chariot's relinquishment of the C-19 licence offshore Mauritania resulting in a $5.2 million impairment against previously capitalised costs, it noted.

Announcing results on September 14, CEO Larry Bottomley said that in 1H 2016: “We have secured the Mohammedia exploration permits in Morocco, matured the portfolio in those permits and the southern blocks of Namibia, acquired extensive 3D seismic programmes in Namibia and Brazil, and successfully secured a drilling partner with Eni in the Rabat Deep permits in Morocco.”

The company said it aims to drill three wells during the next two years, noting that four of its prospects are drill-ready, with the now Eni-operated planned RD-1 well offshore Morocco already funded through a capped carry and expected to be drilled in 2017.

It plans to secure partners for drilling in the Mohammedia permits in Morocco and the southern blocks in Namibia and, post-completion of processing and interpretation, to seek partners for drilling off Brazil and in the central blocks offshore Namibia.

In the latter, Chariot completed a 2,600km² 3D seismic programme this February on the western flank of its acreage, confirming the potential of its 085b lead, adding to its previously identified Prospects B and D in the area. In the southern Namibia blocks, it identified a high-risk, material gas prospect AO1 which Chariot itself estimates as having a gross mean prospective resource in excess of 10 trillion ft3 (283bn m3); an independent audit is underway.

Gas offshore Namibia in the past though has been expensive to develop and monetise. UK Tullow and Japanese partner Itochu in 2015 relinquished their interests in the 003 licence that includes the Kudu offshore gas field. Since state Namcor has tried to launch Kudu’s development. However, when NGW earlier this year approached it for an update on its endeavours, Namcor did not respond.

 

Mark Smedley