19th May 2015 07:36
LONDON (Alliance News) - Chariot Oil & Gas Ltd saw its shares fall early Tuesday after it said that a farm-out agreement it had signed with AziLat Ltd on four licences in the Barreirinhas basin in Brazil has been terminated and it's now looking for a new partner for the licences.
The AIM-listed oil and gas explorer focused on the Atlantic margins said the farm-out deal, initially announced last August, covered the BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 licences.
"Since initial agreement, which was announced on 20 August 2014, AziLat has requested amendments to the commercial terms of the farm-out which are unacceptable to Chariot as they do not reflect the high potential of the assets and are therefore not in the interests of the company nor its shareholders. As a result, AziLat will no longer acquire a 25% working interest in the Licences," Chariot said in a statement.
"Whilst it is disappointing that we will not be moving forward with AziLat in our exploration efforts offshore Brazil, we remain committed to our plans here and will continue to seek a technically competent and financially secure partner for these licences. In the meantime, we will retain a focus on risk management and capital discipline. With its long licence duration and strong cash balance, Chariot has the time and financial flexibility to pursue its stated objectives," Chief Executive Larry Bottomley added.
Chariot said it is fully funded for all of its commitments with a cash balance of USD53.5 million as of the end of 2014, and the company's Brazilian 3D seismic programme over the licences remains planned for the second half of 2015.
Its shares were down 1,7% at 11.67 pence early Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Chariot