16th Feb 2017 09:41
LONDON (Alliance News) - Chariot Oil & Gas Ltd on Thursdy said its subsidiary has been awarded a 75% stake and operatorship of the Kenitra offshore exploration permit, located in Morocco.
Chariot Oil said the subsidiary Chariot Oil & Gas Investment (Morocco) Ltd was awarded the permit in partnership with the Moroccan state-owned Office National des Hydrocarbures et des Mines, which holds a 25% carried interest.
Kenitra is located across an area of 1,400 square kilometres and has water depths ranging from 200 metres to 1,500 metres. It was previously part of the Rabat deep offshore exploration permits I-VI, in which Chariot now has a 10% interest and a capped carry on the RD-1 well which is expected to be drilled early next year.
Kenitra is also adjacent to Chariot's 75% interest in the Mohammedia offshore exploration permits I-III.
Chariot said it has started a seismic acquisition campaign together with its partner for the Kenitra site, covering both the Mohammedia and the Kenitra areas, which should enable it to develop the portfolio of drillable resources and potentially identify additional material prospectivity.
This is expected to fulfill the work commitment for the current licence phase on both licences.
"This award allows us to capture the extension of the lower cretaceous play which spreads from Mohammedia into the Kenitra acreage. With our focus on de-risking our assets, Chariot will develop the drilling inventory on these permits through seismic acquisition which capitalises on the current excellent seismic contract rates," said Chariot CEO Larry Bottomley.
Shares in Chariot were up 5.7% at 10.49 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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