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Chariot Oil & Gas reveals resource potential offshore Namibia

Published: 08:37 01 Jul 2011 BST

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Chariot Oil & Gas (LON:CHAR) has revealed today that its assets offshore Namibia hosts potentially 16.1 billion barrels of oil.

A competent person's report showed 14.4 billion barrels of gross P50 unrisked prospective resource - representing a 50 percent chance of being produced.

The figure rises to 16.1 billion barrels of gross mean prospective resource potential on an unrisked basis - a slight increase of 3.5 percent or 535 million barrels within the firm's licence areas.

The AIM-listed explorer has eight licences off the coast of Namibia.

This report updates a previous one in late 2010, it said, which reported gross P50 unrisked resource volumes of 9 billion barrels with gross mean unrisked resource volumes of 10.1 billion barrels.

The company said the report's findings supported the work done by its in-house technical team.

Based on the report's gross, risked discounted cash flows for the entire prospect and lead inventory Chariot determines a net expected monetary value of £11.2 billion for the P50 resources  - corresponding to £7.47 (US$12.00) per net risked bbl, said the firm.

CEO Paul Welch said: "These volumes have resulted from the extensive geological and geophysical work undertaken by the Chariot technical team across all our licence areas.

"It is very satisfying to continue to have third party endorsement of our prospective resources. Having established the potential of our assets, we now look forward to the next stage of our development and the drilling of our prospect inventory."

This week the company confirmed that it has formally renewed its licences in Namibia. This will extend the licence until August 2013.

Crucially the group has retained 100 percent of the acreage, rather than relinquishing 50 percent which is customary.

Chariot said that this is because it significantly exceeded the required commitments during the initial exploration period. The renewals now trigger certain exploration commitments.

Just after 9am the company's share price was up 5.53 percent on yesterday's close - trading at 195.75 pence.

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