It was a six month period that began with disappointment for Chariot Oil & Gas Limited (LON:CHAR) but there ’s presently a degree of positivity and optimism with the next ‘high impact’ possibility due to start before the year’s end.
Time will tell whether 2018 will be a tale of two halves and two exploration outcomes. In the first quarter the Rabat Deep well was drilled offshore Morocco, and, was found to be ‘dry’. Soon, during the fourth quarter, a well will be drilled to test Prospect S offshore Namibia.
“Our participation in the Rabat Deep 1 well in Morocco demonstrated our ability to expose the company and its shareholders to potentially transformational events at zero cost, and we are pleased to have secured historically low rig rates for the drilling of Prospect S, Namibia, in Q4 2018, following a successful fundraise in March,” chief executive Larry Bottomley said in this morning’s interim results statement.
He added: “Well results from Rabat Deep 1 in Q1 2018 were disappointing, but the information obtained has proven key elements in Chariot's adjacent priority targets, which is anticipated to increase their chance of success and further define prospective resource potential following integrated analysis with proprietary seismic datasets.
“The company is fully funded for all remaining commitments.”
During the first half, Chariot raised US$16.5mln and at the end of the six month period, it had a US$28.4mln cash balance. The pre-revenue explorer reported a US$2.1mln loss for the half, including US$1.52mln of admin expenses and US$507,000 of share-based payments out.
The company highlighted that its cash and liquidity position has significantly exceeded the company’s work programme commitments.
At the same time, Chariot continues to seek new partners and it is open to added new exploration opportunities.
Bottomley added: “Datarooms are open across the matured portfolio and we look forward to the drilling of a safe, efficient and cost-effective well in Prospect S, which has the potential, in the success case, to realise substantial value and expose shareholders to additional upside from the additional resource in the inventory of prospects within the licence.
“Concurrently, we will continue refining our broader prospect inventory and remain vigilant to value accretive opportunities."