Proactive Investors - Run By Investors For Investors

Chariot on fire after identifying new prospects offshore Namibia

These five new prospects add to the portfolio of principally stratigraphic prospects and leads described from the legacy 3D seismic data.
Offshore rig
The company is undertaking a contract strategy to identify an appropriate drilling unit

Shares in Chariot Oil & Gas Limited (LON:CHAR) wheeled higher in early deals as it said it had identified five new structural prospects offshore Namibia.

The shares advanced 10.1% to 15p as it said an extensive evaluation of the combined 6,100 square kilometre three-dimensional (3D) seismic dataset, Chariot has identified five new structural prospects on Namibian blocks 2312 and 2412A.

The range of the average (mean) prospective resources for each of the wells runs from 283mln to 459mln barrels, according to the competent person’s report.

Each of these prospects has two or more targets and the boffins calculate the probability of geologic success as 29% at “Prospect S”, while the probabilities for the other four prospects range from 22% to 25%.

 

Prospect

Unrisked gross (100%) prospective oil resources (millions of barrels)

Probability of Geologic Success

Low estimate

Best estimate

High estimate

Mean

S

97

401

1,019

459

29%

T

74

254

594

283

22%

U

85

344

871

393

24%

V

86

302

716

339

24%

W

75

252

601

284

25%

 

Chariot, on behalf of the Central Blocks partnership, has initiated the process to prepare for drilling by undertaking an environmental impact assessment over the new prospects identified from the 2016 seismic campaign.

In addition, the company is undertaking a contract strategy to identify an appropriate drilling unit, long-lead items such as wellheads and tubulars, auxiliary services and logistic base for well services, supplies, helicopters and medivac.

The initial scope of work will be managed through Chariot's in-house team.

"The focus for Chariot is the delivery of transformational value through the discovery of material hydrocarbon accumulations. The maturation of the portfolio in the Central Blocks in Namibia has uncovered a series of robust, low risk structural traps that are targeting the proven play elements demonstrated in nearby wells. These prospects have the potential for material accumulations and success in one will significantly de-risk the remainder,” said Larry Bottomley, chief executive officer of Chariot. 

"This is an exciting new development for Chariot in Namibia and highlights the prospectivity of this acreage. Its partner in Morocco, Eni, will be drilling the RD-1 well (CHAR: 10%) targeting the JP-1 prospect, which is estimated to hold 768mmbbl of gross prospective resources in early 2017. The momentum behind the drill ready prospect inventory is building for Chariot and each of these prospects has company making potential," suggested Dougie Youngson, at house broker finnCap.

View full CHAR profile View Profile

Chariot Oil and Gas Timeline

Related Articles

iofina plant
October 10 2018
Iofina produced a record 172.3 tonnes of iodine in the third quarter of 2018, leaving it on track to achieve its full-year target of between 575-605 tonnes
Touchstone
Thu
An independent evaluation confirming the potential of the Ortoire block is a “significant milestone”, according to analysts at SP Angel
Italy
August 07 2018
Currently it owns 100% positions in two southern Italian licences, but Aitken says reducing its interest in either or both would allow the group to broaden its reach

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use