Chariot Agrees Licence Terms in Morocco
London-listed Chariot Oil & Gas reported on December 14 it had negotiated the key terms of the Rissana offshore licence in Morocco, with a formal award expected in 2021.
Chariot will take a 75% position in the licence, while the state-owned Office National des Hydrocarbures et des Mines will have the remaining 25%. Rissana spans 8,476 km2, completely encompassing Chariot's existing Lixus licence, where the company is working to develop the Anchois gas discovery. The new licence also covers most prospective northern areas of the Mohammedia and Kenitra offshore licences, which Chariot previously relinquished.
The licence provides material potential running room in various plays including the Mio-Pliocene gas play surrounding the Lixus licence that is on trend with the Anchois find, Chariot said. The company's only initial commitment is to shoot a 2D seismic survey over a portion of the acreage, which should help evaluate the extent and potential of these gas plays.
"Whilst 2020 has been a challenging year for many, we believe that Chariot is exiting the year in a very strong position," acting CEO Adonis Pouroulis said. "With the anticipated formal award of the Rissana licence expected in 2021, we have shown Chariot's strong commitment to both the Anchois gas project as well as to Morocco."
Anchois is estimated as of September to hold more than 1 trillion ft3 of recoverable gas. Chariot is in talks with financiers to fund the field's development, which it says will cost somewhere in the region of $300-500mn. Over the summer the company said it was negotiating with potential buyers on either side of the Straits of Gibraltar for the gas.