Chariot Ltd (AIM:CHAR, OTC:OIGLF) new well in Morocco promises to de-risk and unlock other similar nearby projects, stockbroker Panmure Gordon highlighted following the start of drilling.
This morning, in a statement, Chariot confirmed the start of drilling on the OBA-1 well, on the Dartois prospect located in the Loukos Onshore licence.
Panmure analyst Ashley Kelty, in a daily note, pointed to the project favourable economics, and the opportunity for Chariot to scale the venture – if the .. well works.
“In the event of success, this could de-risk other prospects in the vicinity,” Kelty said.
“These wells are low cost and quick to drill, with short development times for discoveries.”
“Another positive is the strong gas pricing that can be achieved in Morocco.”
The Dartois target holds an estimated recoverable prospective resource of 12 billion cubic feet (Bcf). It is targeting a different trapping style compared to the Gaufrette prospect drilled by the RZK-1 well, Chariot today explained.
Success at Dartois could potentially unlock additional prospects with a combined resource estimate of 20 Bcf, it added.
"We are pleased to be underway with our second well in this drilling campaign, having spud the OBA-1 well within short order of completing operations at Gaufrette,” Chariot technical director Duncan Wallace said in a statement.
“We are now testing an independent prospect at Dartois, which is in a different reservoir fairway and along trend from an existing gas discovery, and we look forward to providing an update on the results in due course."