viewChariot Oil and Gas plc

Chariot Oil & Gas confirms viability of Anchois gas field

Recent studies have shown that Chariot has a couple of ways to develop Anchois, while they also highlighted the “attractive” and high-growth Moroccan energy market

offshore oil
Anchois could be host to as much a 1trn cubic feet of gas

Recent studies carried out at Chariot Oil & Gas Limited’s (LON:CHAR) Anchois gas field, offshore Morocco, have shown that development of the project is “technically feasible”.

Analysts at finnCap said confirmation of the project’s viability “should help attract potential strategic partners with a view to funding appraisal operations in 2020”.

READ: Chariot reveals quickfire resource upgrade for new project

Chariot believes there is potential for either a single phase or a staged development to “commercially optimise access to different parts of the gas market”.

One of the options is the ‘subsea-to-shore’ concept, which involves an underwater umbilical connecting subsea production wells to an onshore processing facility where the gas would be processed and then delivered into the Maghreb-Europe Gas pipeline (GME) via an onshore gas flowline.

There is also the potential to re-enter the suspended Anchois-1 gas discovery well, which could be completed as a producer well, Chariot said.

‘Attractive’ local energy market

As well as studies on the field itself, the AIM company has carried out an assessment of the Moroccan energy market.

Its research concluded that Morocco has a growing energy market with “attractive gas prices” that underpins the “commercially attractive project”.

Chariot also confirmed it has initiated an Environmental Impact Assessment which will allow it to carry out appraisal operations in 2020.

Boss happy

“The results of these studies demonstrate the technical feasibility and commercial attractiveness of developing the Anchois gas discovery with the potential to offer a strategically important indigenous source of gas into Morocco's developing energy market,” said chief executive Larry Bottomley.

“We believe the combination of a de-risked resource base in a fast-growing energy market, with high gas prices and a need for increased supply remains highly attractive to a wide range of potential strategic partners throughout the energy value chain.”

He added: “As part of the partnering process and to facilitate appraisal operations in 2020, the company has initiated a Drilling Environmental Impact Assessment.”

Chariot shares were broadly flat at 4.74p on Tuesday afternoon.

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Quick facts: Chariot Oil and Gas plc

Price: 2.19 GBX

Market: AIM
Market Cap: £8.3 m

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Full interview: Chariot Oil & Gas reports more than 2 TCF of gas at Morocco...

Chariot Oil & Gas Limited's (LON:CHAR) Larry Bottomley discusses with Proactive London's Andrew Scott the results of a new third-party assessment of the recently acquired Lixus project area offshore Morocco. Five additional exploration prospects present more than 1.2trn cubic feet (TCF)...

on 18/9/19

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