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Chariot Oil & Gas counting down for offshore Morocco well

Last updated: 15:50 07 Sep 2017 BST, First published: 07:24 07 Sep 2017 BST

Oil rig workers drilling offshore
ENI is operator of the Rabat Deep project

Chariot Oil & Gas Limited (LON:CHAR) saw its shares jump today as it told investors that it has secured a drilling rig for the upcoming RD-1 well, targeting the JP-1 exploration prospect which forms part of its operations in Morocco.

Project operator ENI has contracted Saipem 12000, an ultra-deepwater drillship, for the programme and it is currently anticipated that the rig will arrive in the later part of the first quarter of 2018 with drilling due to start shortly thereafter.

JP-1 is described as a large, four-way dip closed structure spanning 200 square kilometres areal extent. The target is estimated at 768mln barrels (gross mean prospective resource).

Chariot, as a result of its farm-out deal with ENI, has a ‘capped carry’ on the costs of the exploration well.

READ: Chariot Oil & Gas has plenty of cash, quality partners and lots and lots of seismic data

"We are pleased to see Eni progress operations on the Rabat Deep Offshore acreage and secure the high-performance Saipem 12000 drillship to drill the JP-1 prospect, one of Chariot's priority targets,” said Larry Bottomley, Chariot chief executive.

“JP-1 has the potential to create transformational value in the success case due to the large scale prospective resources, excellent commercial contract terms and robust economics.

“Success will also materially de-risk other targets we have identified within our neighbouring Mohammedia and Kenitra permits in which Chariot holds a 75% interest."

In late afternoon trading, Chariot shares were up 13%, or 1.5p at 12.75p.

 -- Adds share price --

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