Chariot Oil & Gas maintains cash position at year end

Over the year, the company has preserved a ‘strong’ cash position, while developing an inventory of drill ready prospects with material follow-on potential, as a result of a combination of prudent cash management, partnering, securing new acreage and maturing the portfolio while capitalising on current seismic costs.

The group expects unaudited cash position at year end 31 December 2016 to be $25m. It remains debt free with cash in excess of license commitments.

In Morocco, the company announced the farm-in of Eni into the Rabat Deep Offshore Exploration Permits.

Offshore Namibia it acquired and processed 2,600km² of 3D data in the Central Blocks which is now being interpreted by its technical team.

In Brazil a proprietary acquisition and processing of 775km² of 3D data across the group’s four concessions is complete and interpretation of the data has been initiated.

Chief executive Larry Bottomley said: "We have made significant progress throughout the year, proactively pursuing our exploration programmes, completing another farm-out, maturing our current portfolio and securing further prospective acreage in line with our strategy of rigorous portfolio management and capital discipline.

“We are now focused on delivering three exploration wells in the next two years. We expect the tough market conditions to continue into the next year but Chariot has established a strong position within this environment which will allow us to deliver on our plans."

The share price fell 14.67% to 8p at 1600 GMT on Thursday.