Shares in Chariot Oil & Gas Limited (LON:CHAR) gushed higher on Wednesday as the Atlantic-margins explorer told investors of its drilling plans and said it had more than enough cash to fulfil its licence commitments.
Shares added over 18% in morning deals to stand at 6.90p.
At its Rabat Deep exploration permits off the coast of Morocco, it has significantly farmed out a 40% stake to world class explorer and partner Eni.
This provides Chariot with a capped carry on drilling of the RD-1 well, which is targeting the JP-1 prospect, housing 768 milion barrels of gross mean prospective resources.
It is one of the three wells the firm is targeting to drill in the next two years - from four prospects from the portfolio, which are described as "drill-ready".
In Brazil, Chariot has completed acquiring around 775 sq km of 3D seismic, covering the licence area at the end of March, which is now being processed and will then be interpreted in-house. Early findings show clear turbidite reservoir geometries.
In Namibia, where it has three offshore blocks, early processed products of the newly acquired 2,600 sq km of 3D seismic in the central blocks are of excellent quality, the group said, and confirm the potential of the 085b prospect, adding to the previously developed portfolio with high-graded prospect B and prospect D.
Larry Bottomley, chief executive of Chariot, told investors: "Our technical work over the last few years has laid the foundations of a strong company with a portfolio of assets capable of delivering transformational growth.
"The next phase across our portfolio is to create value with the drill bit and our aim is to partner with a target of drilling three wells within the next two years."
As at June 30, the firm had US$29mln and no debt. The loss before tax was US$5.3mln (2015: loss of USD$4.2mln).