Junior oiler with acreage in Morocco, Brazil and Namibia
Traditionally specialised in Frontier or wildcat exploration for huge targets
Added production assets in Morocco with Lixus acquisition
What it does
Chariot Oil & Gas Ltd (LON:CHAR) traditionally has targeted blue-sky discoveries.
The Lixus licence acquisition broke from the tradition, as the company picked up new acreage that already has a discovery.
It is a switch from high-risk wildcat drilling to a lower risk appraise-and-explore approach.
There’s still the requisite upside potential and blue-sky to keep Chariot’s stock market following engaged, though this time it is grounded in more certainty than the big-hit-or-big-miss type projects that have been pursued in the past.
How it's doing
In June, Chariot highlighted its continuing work to advance the Anchois gas field on the Lixus licence to define the project and unlock debt financing.
Posting its full-year 2019 results, the company confirmed that completion of pre-FEED work for the gas field is the key strategic focus for the group through the remainder of 2020.
It is working to progress concept testing, selection and definition, along with engineering modelling and design.
Meanwhile, commercially, it is aiming to secure heads of terms agreement with potential offtake partners.
Chariot said it had a cash balance of US$9.6mln at the end of December with no remaining work commitments. It said it expects annual cash overheads to be significantly lower following extensive cost-cutting, down to US$2.5mln from US$4.5mln.
What the boss says: Larry Bottomley
"Studies undertaken have highlighted the technical feasibility and economic viability of a development and the gas market analysis confirms the potential to deliver gas into Morocco and/or Spain at a price that delivers strong returns on the capital invested,"
- Farm-out opportunity in Namibia, Brazil and Morocco
- Fully funded for work programmes to get Lixus into production
- That can be with a single or multi-stage process