Chariot Oil & Gas Limited (LON:CHAR) has revealed results from 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) of upside potential, according to independent consultant Netherland Sewell & Associates Inc.
The Netherland Sewell competent persons report (CPR) also confirmed over 1 TCF of gas resources in the Anchois discovery and the Anchois satellite prospects.
Chief executive Larry Bottomley, in a statement, said: "The independent evaluation of the Additional Prospects in the Lixus licence describes material running room over and above the discovered resource base and low risk exploration portfolio in the Anchois Discovery and the Anchois Satellite prospects.
“The combination of the Anchois Discovery, the Anchois Satellite prospects and these five additional prospects defines a strategically significant resource adjacent to a fast-growing energy market with high gas prices and a need for increased supply.”
Bottomley, meanwhile, also told investors that several “interesting leads” in its ongoing partnering process are now being progressed following “encouraging feedback”.
“We are pleased with the partnering process to date, which has received interest from a wide range of potential strategic partners across the energy value chain," he added.
Netherland Sewell CPR in numbers
The report detailed a total of 423bn cubic feet (BCF) of gas resources in the Anchois discovery.
Specifically, the Anchois-1 discovery well (drilling by a previous operator in 2009) accounts for some 307 BCF cubic feet of contingent gas resources, with a deeper previously untested target seen to have another 116bn cubic feet of prospective resources.
Five Anchois satellites are estimated to host 588 BCF cubic feet of prospective resources - with each satellite ranging between 29 BCF and 308 BCF) – giving the overall Anchois project a total potentially recoverable resource of 1.01 TCF.
The five new prospects – Maquereau N, Maquereau C, Maquereau S, Tombe, Tubot – are together seen to have some 2.22 TCF of prospective resources.
Maquereau N, Maquereau C, Maquereau S are consecutively estimated at 311 BCF, 267 BCF and 205 BCF, whilst Tombe is viewed as having 154 BCF and Turbot has 281 BCF.
Forward work programme
Chariot highlighted in Wednesday’s statement that it is fully funded for the initial work programme that envisaged for the Lixus licence.
This programme includes desktop work such as the reprocessing of existing 3D seismic data, presently underway, and an already commissioned feasibility study which will look at the technical viability of developing the Anchois field.
Chariot described the potential future wells at Anchois as “high rate and low cost”.
It also noted third party analysis which demonstrates growing demand for energy in Morocco with attractive domestic gas prices.
“The Anchois Discovery offers the potential for a material, high-value project that is likely to be of strategic importance. The low risk prospect inventory offers running room with additional, low-cost tie-back opportunities,” the company said.