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    Eni Mobilises Rig for Moroccan Well

Summary

Eni has mobilised a drillship for its first exploration well offshore Morocco. It may be drilling before the end of March.

by: Mark Smedley

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Natural Gas & LNG News, Africa, Corporate, Exploration & Production, News By Country, Italy, Morocco

Eni Mobilises Rig for Moroccan Well

Eni has mobilised a drillship for its first exploration well offshore Morocco. UK partner Chariot Oil & Gas said February 27 that the Saipem 12000, a sixth generation ultra-deepwater drillship, has started its mobilisation to drill the RD-1 well on the Rabat Deep Permits I-VI. It is expected to arrive in Morocco in ten days and to spud the well shortly after its arrival.

Eni operates the Rabat Deep permits with a 40% interest, alongside Australia’s Woodside Energy 25%, Moroccan state ONHYM 25%, and Chariot 10%.

The Moroccan authorities approved Eni’s farm-in to the Rabat Deep permits in January 2017, some nine months after Chariot reached agreement in late March 2016 to divest a 40% stake to Eni.  The overall 10,780 km2 permits area extends over water depths from 150 metres to 3,500 metres.

Chariot also said February 27 it had conditionally raised $15mn through placement of just over 82.5mn new shares at £0.13 ($0.18) each, and now plans to raise a further €5mn ($7mn) more by issuing up to 33.6mn more shares to qualifying shareholders at the same price. It said proceeds will be invested offshore Namibia (Prospect S) or in further exploration offshore Morocco. Atlantic margin explorer Chariot's costs in the RD-1 well are carried by Eni.

Equity analyst CantorFitzgerald maintained their 'Hold' recommendation on the stock but cautioned: "Whilst the additional cash is welcome, we do not believe that the raise is sufficient to give the company enough cash to carry on beyond drilling this year, nor absorb any cost overruns." Chariot was making a "big bet on Namibia" where exploration success by others has been scarce, it added, and would need a farm-out there of its interest for its strategy to succeed.

Separately, onshore Morocco, Toronto-listed SDX Energy said February 27 it has spudded its SAH-2 development well on the Sebou permit, adding that it is expected to take 15-20 days to drill and will be flow-tested if successful.