Chariot Ltd (AIM:CHAR, OTC:OIGLF) has moved closer to securing cash-generating exposure to offshore Angola production after helping finance Etu Energias’ acquisition of stakes in Blocks 14 and 14K, a deal that gives the AIM-listed group economics linked to around 4,000 barrels of oil per day.
The company said a subsidiary of Etu has now signed a sale and purchase agreement to buy a 20% working interest in Block 14 and a 10% interest in Block 14K.
Chariot has provided US$12 million of deposit funding plus related transaction costs, while Shell Western Supply and Trading has arranged acquisition financing in exchange for future offtake barrels. Chariot said that package fully funds the transaction.
For investors, the significance is the income profile, as Chariot highlights, its exposure is equivalent to an indicative net NPV10 asset value of more than US$100 million at a US$60 a barrel oil price, with its funding expected to be repaid from future cashflows after the Shell facilities are serviced.
Chief executive Adonis Pouroulis called the deal “a new chapter” for the company as it adds “valuable oil barrel income on the book”.
"We are delighted to have raised the funds and to be able to support them in this acquisition, alongside the significant financing support from Shell Trading. We look forward to completion later this year and working alongside both parties going forward."
The assets themselves are long-life, producing fields with Chevron operating Block 14 since 1995, and the licence now runs to 2038.
The block has produced more than 900 million barrels since first oil in 1999, and current output of around 40,000 bopd gross. Block 14K, which ties back to Block 14 infrastructure, produces around 1,000 bopd gross.
Completion is subject to regulatory approvals and is expected in the second half of 2026.