20th Aug 2014 07:44
LONDON (Alliance News) - Chariot Oil & Gas Ltd said Wednesday that AziLat Ltd had agreed to acquire a 25% working interest in a group of its assets in the Barreirinhas Basin, Brazil.
AziLat will buy an interest in its BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 blocks, in exchange for paying 50% of the 3D seismic acquisition and processing costs across the blocks. Chariot will remain the operator of the blocks with a 75% interest.
It is in the process of tendering for a 3D seismic survey of around 1,000 kilometres square across the four blocks, which it expects to carry out in the first half of 2015. It is also currently undertaking an environmental impact assessment.
The company has also started looking for more partners on the blocks to "further mitigate risk and financial exposure." Subject to securing these additional partners, it could begin drilling in the second half of 2016 or in 2017, it said.
"We are pleased with our positioning in our blocks in Brazil, where, as with our other assets, there is high industry activity and interest. Ten deepwater wells are to be drilled in the Barreirinhas Basin within the next four years, with one expected to commence in the next six months," said Chief Executive Larry Bottomley in a statement.
Shares in Chariot Oil & Gas were trading up 0.9% at 16.40 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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