Chariot Oil & Gas 1H 2014 Interim Results
Chariot Oil & Gas Announce Interim Results for 1H 2014
Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, today announces its unaudited interim results for the six month period ended 30 June 2014.
Highlights during and post period:
Delivering the strategy
o Partnering with Woodside on Rabat Deep Offshore permits, Morocco - Woodside to acquire a 25% stake in return for all back costs and a carry on additional data acquisition, Chariot retains a 50% operating interest
o Partnering with AziLat on BAR-M-292, BAR-M-293, BAR-M-313, BAR-M-314 licences offshore Brazil - AziLat to acquire a 25% stake in return for paying back costs and 50% of upcoming 3D seismic programme, Chariot retains a 75% operating interest
Strengthening our portfolio, strategic positioning and governance
o Award of Mohammedia Reconnaissance licence offshore Morocco, securing prospectivity seen to extend from Loukos permit
o Fast follower positioning now achieved throughout the portfolio following the re-award of Central Blocks 2312 & 2412A and Southern Block 2714A, Namibia
o Appointment of Bill Trojan and Dave Bodecott as Non-Executive Directors - further enhancing the Board's technical expertise
Fully funded for all commitments and an accelerated work programme
o Unaudited cash balance of US$37.5 million as of 30 June 2014
o Post period Placing completed raising gross proceeds of ~US$15 million to accelerate programme in Brazil and pursue additional acreage within current portfolio
o Post period farm-out in Morocco will result in up to US$13 million of back costs to be received in 2015
o 2,128km 2D seismic acquired offshore Southern Block 2714B, Namibia - all commitments fulfilled within this licence
o Continued portfolio review resulting in provision against carrying value of Northern Blocks, Namibia
o Independent CPR audit based on legacy 2D confirms giant prospectivity and priority drilling target in Rabat Deep Permits, offshore Morocco
o 1,700km2 3D seismic acquired offshore Morocco, processing underway - all commitments fulfilled
o Completed reprocessing and interpretation of legacy 2D seismic data across all licences and commenced the Environmental Impact Assessment ("EIA") in Brazil
o 3D seismic PSDM interpretation underway in Mauritania
o 3D seismic interpretation to be completed in Q1 2015 followed by potential drilling of JP-1, Rabat Deep, subject to partnering
o Partnering process to be initiated for Loukos and Mohammedia licences in H1 2015
o Resource update expected in Q1 2015, subsequent well partnering process to commence
o Additional partnering process underway aiming to fully cover seismic costs.
o 3D seismic programme to be carried out in 2015 Namibia
o Drilling or 3D seismic to be carried out in Central Blocks following ongoing partnering process
o 2D seismic interpretation to be completed, followed by the initiation of a 3D seismic partnering programme across Southern Blocks
o Forward plan on Northern Blocks to be determined following finalised integration of third party drilling information - an impairment provision of US$33.6m has been included in the accounts as this is not currently a priority target for exploration expenditure
o New opportunity within a country in which Chariot currently operates being pursued to increase option value and sustain growth potential of the portfolio
Larry Bottomley, CEO of Chariot, commented, "Chariot has had a very productive year to date, securing partners in Morocco and Brazil, successfully completing our Placing, as well as renegotiating our licence positions in Namibia. We are now in a strong financial position whereby we are able to accelerate our work programmes, pursue new opportunities and take our partnering processes forward from a position of strength. We continue to work on optimising our portfolio, and have progressed our technical work through the acquisition, processing and interpretation of extensive 2D and 3D data sets.
As we progress towards drilling, we continue to seek to manage our risk and financial exposure. Chariot has a balanced portfolio of assets with giant potential, positioned within key regions of the Atlantic margins. We look forward to continuing to deliver on our strategy, generating multiple prospects for drilling with the aim of creating transformational growth for our shareholders."