Chariot Ltd (AIM:CHAR, OTC:OIGLF) chief executive Adonis Pouroulis told investors that the company has “multiple important catalysts” due in the coming months.
The start of drilling on the onshore Loukos project in Morocco, which remains 75% owned by Chariot, will rank high among the catalysts currently looked forward to by the company and its investors.
Two wells are planned on the licence, with drilling slated to start near the end of the first quarter.
It starts with the Gaufrette prospect, which is seen ‘up dip’ of an existing gas discovery. The company believes exploration success will potentially unlock multiple similar prospects which together are estimated to total some 26 billion cubic feet of gas resources.
The second well will test the Dartois prospect which, similarly, is in the neighbourhood of a historic discovery and may also unlock follow-on prospects exceeding 20 billion cubic feet of estimated resources.
Precise project timings will depend on the securing of a rig contract, Chariot noted.
The Loukos campaign follows the recent breakthrough at the Anchois project where a farm-out deal saw Energean join the project – in return for US$10 million of cash payable to Chariot upon completion, and the provision of funding for the development of the field, potentially through to ‘first gas’.
“In kickstarting the drilling campaign at the Loukos licence we are focused on unlocking an overlooked onshore basin that has near term production potential with immediate access to industrial markets,” chief executive Pouroulis said in a statement.
“Importantly this asset also has a growing portfolio of follow-on opportunities which give meaningful scale and value to the project, at a time when industrial gas demand and associated gas pricing is at an unprecedented high.”
Pouroulis added: “Drilling at Anchois later in the year will be a key milestone in determining the possibility to scale up this development and we are working closely and constructively with our new partners Energean in preparing all the workstreams necessary to permit a Final Investment Decision post-drilling as soon as feasible.”
"We are also excited about the opportunities that we see within our Power and Hydrogen businesses.
“We continue to build on our presence across the transitional energy sector, we remain fully focused on looking to maximise value for all stakeholders and will continue to provide updates on all our further developments."
In its ‘transitional energy’ business, Chariot has invested in a South African renewable power generator, Etana Energy.
Here, the companies aim to connect energy generation projects to industrial users, tapping into a high-demand electricity market.
Elsewhere, it has an interest in the Essakane solar project in Burkina Faso and, separately, a development of some 40MW in a solar project, alongside efforts to co-develop renewable energy solutions for mining companies.
In Mauritania, meanwhile, the company is advancing a green hydrogen project in partnership with a TotalEnergies company with a feasibility study due to be ready for government review in the coming weeks.