Proactive Investors - Run By Investors For Investors

Chariot Oil & Gas looks ahead to Namibia opportunity

The year started with a disappointing well, investors will be hoping it will end in exploration success offshore Namibia.
oil and gas operations
Prospect S is due to be drilled in the fourth quarter

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.

READ: Chariot Oil & Gas focusing on new well opportunity offshore Namibia

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."

View full CHAR profile View Profile

Chariot Oil and Gas plc Timeline

Related Articles

Hurricane
March 01 2019
Hurricane Energy has gone from a conceptual idea to point of substantial production
North Sea
May 08 2019
Operator Equinor is analysing all the data to assess options at Verbier and the rest of the licence
oil well
February 06 2019
Company has exploration and production interests in shale licences in the US and Australia

© 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