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Chariot awarded 75pc stake in new Morocco permit

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Chariot awarded 75pc stake in new Morocco permit

Thu, 16 February 2017
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Chariot awarded 75pc stake in new Morocco permit

(ShareCast News) - Atlantic margins-focussed oil and gas exploration company Chariot Oil & Gas announced on Thursday that its wholly owned subsidiary, Chariot Oil & Gas Investments Morocco, was awarded a 75% interest and operatorship of the Kenitra Offshore Exploration Permit in partnership with the Office National des Hydrocarbures et des Mines, which holds a 25% carried interest.
The AIM-traded firm said Kenitra, with an area of approximately 1,400 square kilometres and in water depths ranging from 200 metres to 1,500 metres, was formerly part of the Rabat Deep Offshore Exploration Permits I-VI, in which the company now has a 10% interest and a capped carry on the RD-1 well which is anticipated to be drilled in early 2018.

That acreage was recently relinquished, as required under the Moroccan Hydrocarbon Code, on the entry into the current licence period of Rabat Deep.

Kenitra is also adjacent to the company's 75% interest in the Mohammedia Offshore Exploration Permits I-III.

Chariot said through 3D seismic data acquired in 2014 on Mohammedia, it identified the LKP group of prospects in the shallow-water clastics in the Lower Cretaceous play which have gross mean prospective resources ranging from 182mmbbls to 350mmbbls in four prospects,as described in the most recent audit by Netherland Sewell and Associates.

Separately, Chariot said it also identified the deep-water turbidite equivalent of those shallow-water clastics in a new large lead, Kenitra-A, which iwa partially covered by 3D seismic data and has a gross mean prospective resource of 464mmbbls as estimated by the company.

It said those prospects and leads all have Class III AVO seismic attributes that are supportive of the presence of hydrocarbons and the RD-1 well has the potential to further de-risk these targets.

In order to fully describe the Kenitra-A lead and to define prospectivity throughout the play, Chariot confirmed that, in conjunction with ONHYM, it has commenced its seismic acquisition campaign covering both Mohammedia and Kenitra.

The acquisition, conducted by Polarcus, will enable the Ccmpany to develop the portfolio of drillable prospects and potentially identify additional material prospectivity.

It said the seismic campaign will fulfil the work commitment for the current licence phase on both licences.

"In line with our strategy we continue to manage our portfolio proactively," commented CEO Larry Bottomley.

"This award allows us to capture the extension of the Lower Cretaceous play which spreads from Mohammedia into the Kenitra acreage."

With a focus on de-risking our assets, Bottomley said Chariot will develop the drilling inventory on these permits through seismic acquisition which capitalises on the current excellent seismic contract rates.

"The RD-1 well scheduled to be drilled in early 2018 on Rabat Deep has the potential to further de-risk the hydrocarbon charge system in the cretaceous play in Kenitra and Mohammedia which has prospectivity in excess of a billion barrels in which the company holds 75% equity.

"We would like to thank the ministry for their support in awarding this licence and we look forward to continuing our successful partnership with ONHYM and progressing exploration over this area."