Proactive Investors - Run By Investors For Investors

Chariot Oil & Gas reveals disappointing Prospect S well result

"Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems"
oil and gas operations
The stacked reservoir targets were water bearing

Chariot Oil & Gas Ltd (LON:CHAR) revealed that the Prospect S exploration well, offshore Namibia, did not encounter a hydrocarbon accumulation.

The well encountered its targeted stacked reservoirs within pre-drill prognosis, but, they were found to be water bearing.

READ: Eco Atlantic Oil & Gas gets greenlight for Namibia drilling

Well data will now be used to allow the company to understand the implications for the prospectivity of the surrounding area. The well will be plugged and abandoned.

"Whilst very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems which form the primary targets across many of the prospects within the Central Blocks portfolio,” said Larry Bottomley, Chariot chief executive.

“We will further evaluate the extensive data gathered in the well to understand the implications for the Central blocks portfolio.”

Bottomley added: “With all licence commitments now met across the entire portfolio, the company is fully-funded to progress our assets in Morocco and Brazil whilst remaining vigilant to other value accretive opportunities."

Chariot shares fell nearly 60% in Thursday's deals, down 4.65p to 3.25p per share.

View full CHAR profile View Profile

Chariot Oil and Gas Timeline

Related Articles

New prospect areas near the Dorado-1 oil discovery
October 15 2018
Three additional prospects are estimated to contain significant quantities of oil, gas and condensate.
pylons
October 22 2018
The first well, 'Lesedi 3P', is scheduled to drill down to a depth of 580m
oil wells
November 22 2018
Highlands has been undertaking fracking operations at its East Denver acreage recently

© Proactive Investors 2018

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