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Market: AIM
Sector: Energy
EPIC: CHAR
Latest Price: 128.00p  (2.42% Ascending)
52-week High: 323.50p
52-week Low: 88.00p
Market Cap: 232.47M
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Chariot Oil and Gas
www.chariotoilandgas.com

Chariot Oil and Gas is an independent oil and gas exploration company with interests strategically positioned within the South Atlantic Margins.

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Chariot Oil & Gas lifted by Petrobras farm-out deal offshore Namibia

19th May 2009, 9:39 am Chariot Oil & Gas lifted by Petrobras farm-out deal offshore Namibia
Shares in Chariot Oil & Gas Ltd (AIM: CHAR) were lifted this morning by news that its unit Enigma Oil & Gas Exploration (Pty) Ltd has signed a farm-out agreement with Petrobras Oil and Gas BV, a wholly-owned subsidiary of Petroleo Brasileiro SA, in respect of a 50 percent interest in one of Chariot's exploration blocks, 2714A, offshore southern Namibia.

The stock was trading up nearly 25 percent higher in midmorning deals.

Chariot will receive US$16.04 million in cash from Petrobras for the 50 percent interest in the block, it said in a statement.

In the event of a commercial discovery, Chariot will receive production bonus equal to 4.75 percent after royalties of Petrobras' share of production up to either 2 million barrels of oil equivalent or a value of US$118 million, whichever occurs first.

Petrobras has also agreed to, and will pay its 50 percent share of, a further 1,500 square kilometres of 3D seismic acquisition that is expected to be undertaken on block 2714A later this year.

Block 2714A is one of Chariot's eight exploration blocks located offshore Namibia and covers an area of 5,481km² in the southern Orange basin.

Chariot has recently undertaken a 3D seismic programme, acquiring 1,500km² across block 714A and the neighbouring block 2714B. Reprocessing and interpretation of this data is underway.

Enigma will remain as operator of the block until the end of the initial exploration period with Petrobras having the option of becoming the operator thereafter.

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