TIDMCHAR
RNS Number : 6776M
Chariot Oil & Gas Ld
18 September 2019
18 September 2019
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Competent Persons Report on Additional Prospects, Lixus Offshore
Licence, Morocco
Total remaining recoverable resources upgraded to in excess of 2
Tcf of gas
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins
focused oil and gas company, is pleased to announce the completion
of an independent Competent Persons Report ("CPR") by Netherland
Sewell & Associates Inc. ("NSAI") over the Additional Prospects
in the Lixus Offshore Licence ("Lixus"), Morocco.
-- Material running room in five Additional Prospects offers
further upside in excess of 1.2 Tcf audited 2U prospective
resources.
-- These resources, in addition to the Anchois Discovery and the
Anchois Satellite prospects, contribute towards an audited total
remaining recoverable resource in excess of 2 Tcf (comprising 2C
contingent resources and 2U prospective resources).
Field / Prospect Unrisked Gross (100 percent) Probability
Prospective Gas resources of Geologic
(Bcf) Success
(Pg)
----------------------
1U 2U 3U Mean
----------------------
Additional Prospects
---------------------- ------- -------
Maquereau N 91 311 628 311 25%
------ ------- --------- -------------
Maquereau C 73 267 559 276 25%
------ ------- --------- -------------
Maquereau S 59 205 432 216 23%
------ ------- ------- --------- -------------
Tombe 60 154 280 153 19%
------ ------- --------- -------------
Turbot 38 281 709 303 16%
------ ------- ------- --------- -------------
Larry Bottomley, CEO commented:
"The independent evaluation of the Additional Prospects in the
Lixus licence describes material running room over and above the
discovered resource base and low risk exploration portfolio in the
Anchois Discovery and the Anchois Satellite prospects.
The combination of the Anchois Discovery, the Anchois Satellite
prospects and these five Additional Prospects defines a
strategically significant resource adjacent to a fast-growing
energy market with high gas prices and a need for increased
supply.
Following encouraging feedback from the partnering process,
several interesting leads have been identified and these are
currently being progressed by the Chariot team. We are pleased with
the partnering process to date, which has received interest from a
wide range of potential strategic partners across the energy value
chain."
Further Information
Chariot, through its wholly owned subsidiary, Chariot Oil &
Gas Holdings (Morocco) Limited, has a 75% interest and operatorship
of Lixus, in partnership with the Office National des Hydrocarbures
et des Mines ("ONHYM") which holds a 25% carried interest.
The Lixus licence covers an area of approximately 2,390km(2) ,
30km north of Chariot's Mohammedia and Kenitra licences, with water
depths ranging from the coastline to 850m. The area has been
subject to earlier exploration with legacy 3D seismic data covering
approximately 1,425km(2) and four exploration wells, including the
Anchois gas discovery.
The Anchois-1 well was drilled in 2009 in 388m water depth some
40km from the coast and encountered an estimated net gas pay of 55m
in two sands with average porosities ranging from 25% to 28%. An
independent audit of this discovery by NSAI estimates a 2C
contingent resource of 307Bcf. A deeper target not penetrated by
the well has 2U prospective resources estimated by NSAI of 116Bcf,
with the Anchois Discovery containing a total remaining recoverable
resource of 423 Bcf.
The Anchois Discovery is in Tertiary-aged turbidite reservoirs
that occur above a nappe emplaced during the Alpine orogeny and the
pay sands have a characteristic and anomalous seismic signature.
The Company has identified five Anchois Satellite prospects with
similar seismic signatures to the Anchois Discovery that have
tie-back potential, all of which have been audited by NSAI, who
estimate that Anchois Discovery and the Anchois Satellites hold
remaining recoverable resources in excess of 1 Tcf.
An additional five prospects have been identified in Lixus in
similar geological settings as Anchois and these prospects have in
excess of 1.2 Tcf of 2U prospective resources, as estimated by
NSAI. Chariot is also evaluating new leads identified during
technical review, with companies participating in the partnering
process. These leads have the potential to add further prospects to
the portfolio when technically matured.
The table below summarises the results of the CPR on Anchois,
its satellite prospects and the additional prospects:
Field / Prospect Unrisked Gross (100 percent) Probability
Contingent Gas resources* of Geologic
(Bcf) Prospective Gas resources Success
(Bcf) (Pg)
-------------------------------
1C* 2C* 3C* Mean
------------------------------- ------- --------- --------- --------
1U 2U 3U Mean
-------------------------------
Anchois Discovery
------------------------------- --------- ---------
Anchois A sand* 45 107 143 100 N/A
------- --------- -------- -------------
Anchois B sand* 111 201 290 201 N/A
------- --------- -------- -------------
Anchois Contingent Resource* 156 307 433 301 N/A
------- --------- --------- -------- -------------
Anchois Deep (C sand) 56 116 172 115 N/A
------- --------- -------- -------------
Anchois Remaining Recoverable
Resource 212 423 605 416 N/A
Anchois Satellites
------------------------------- --------- ---------
Anchois N 140 308 492 297 43%
------- --------- --------- -------- -------------
Anchois W 45 89 134 86 35%
------- --------- --------- -------- -------------
Anchois NW 10 29 51 28 34%
------- --------- --------- -------- -------------
Anchois SW 42 101 165 98 28%
------- --------- --------- -------- -------------
Anchois WSW 22 61 110 60 23%
------- --------- --------- -------- -------------
Anchois & Anchois Satellites
Remaining Recoverable
Resource 470 1011 1556 985
------- --------- --------- -------- -------------
Additional Prospects
------- --------- --------- -------- -------------
Maquereau N 91 311 628 311 25%
------- --------- --------- -------- -------------
Maquereau C 73 267 559 276 25%
------- --------- --------- -------- -------------
Maquereau S 59 205 432 216 23%
------- --------- --------- -------- -------------
Tombe 60 154 280 153 19%
------- --------- --------- -------- -------------
Turbot 38 281 709 303 16%
------- --------- --------- -------- -------------
Total Remaining Recoverable
Resource 791 2229 4164 2244
------- --------- --------- -------- -------------
The initial licence work programme commitment, for which the
Company is fully funded, includes a technical programme of 3D
seismic reprocessing which is underway and the evaluation of the
additional exploration potential of Lixus. As part of this work
programme commitment, Chariot commissioned a feasibility study
which has demonstrated the technical viability of the development
of the Anchois field. The excellent quality reservoirs in the
Anchois Discovery offers the potential for high rate wells and the
consequent possibility of a low-cost development.
In addition, a third-party analysis of the Moroccan gas market
demonstrates growing demand for energy with attractive domestic gas
prices which, in combination with excellent commercial contract
terms, underpins a commercially attractive project. The Anchois
Discovery offers the potential for a material, high-value project
that is likely to be of strategic importance. The low risk prospect
inventory offers running room with additional, low-cost tie-back
opportunities.
Chariot is in a process to secure strategic partnerships and
alliances to progress towards a development of the Anchois
Discovery and the additional exploration potential. An
Environmental Impact Assessment is underway to facilitate these
appraisal and exploration operations.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
Qualified Person Review
This release has been reviewed by Duncan Wallace, Exploration
Manager of Chariot, who is a petroleum geologist with over 15
years' experience in petroleum exploration, MSc in Petroleum
Geology from Imperial College and a member of the Petroleum
Exploration Society of Great Britain. Mr Wallace has consented to
the inclusion of the technical information in this release in the
form and context in which it appears.
For further information please contact:
Chariot Oil & Gas Limited
Larry Bottomley, CEO +44 (0)20 7318 0450
finnCap (Nominated Adviser and Broker)
Matt Goode, Christopher Raggett, Anthony Adams
(Corporate Finance) Andrew Burdis (ECM) +44 (0)20 7220 0500
Celicourt Communications (Financial PR)
Jimmy Lea +44 (0)20 8434 2754
NOTES TO EDITORS
ABOUT CHARIOT
Chariot Oil & Gas Limited is an independent oil and gas
company focused on the Atlantic margins. It holds exploration
licences covering two blocks in Namibia, three blocks in Morocco
and four blocks in the Barreirinhas Basin offshore Brazil.
The ordinary shares of Chariot Oil & Gas Limited are
admitted to trading on the AIM Market of the London Stock Exchange
under the symbol 'CHAR'
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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