21st Apr 2015 08:18
LONDON (Alliance News) - Chariot Oil and Gas Ltd shares dropped on Tuesday morning after it said it is looking for an additional partner for the Rabat Deep permit in Morocco after one of its existing partners decided not to increase its stake in the project by funding the next well.
Chariot shares were down 7.2% to 7.70 pence per share on Tuesday morning.
The Moroccan focused oil and gas exploration company said Woodside Petroleum Ltd, one of its partners on the Rabat Deep offshore permit, has not elected to exercise its option to increase its stake in the project. Chariot said Australia-based Woodside will not fund the drilling of the next exploration well on the permit to increase its stake to 50% from 25%.
As a result, Chariot will remain operator with a 50% equity interest, with Woodside retaining a 25% equity interest and the balance being held by Morocco's Office National des Hydrocarbures et des Mines. Chariot said it will now seek an additional partner for the project to fund further drilling.
"It is disappointing that Woodside has not exercised its option, but we remain optimistic regarding the potential of the Rabat Deep permits," said Chief Executive Larry Bottomley.
"Chariot is currently at near zero cost in its Moroccan acreage and will seek an additional partner to participate in drilling on the Rabat Deep permits," said Chariot. "Whilst market conditions are challenging, the large scale of the prospects in Chariot's portfolio means that drilling success would create transformational value even at current oil prices."
Drilling on the Rabat Deep permit is not expected to take place until 2016 or 2017, subject to Chariot finding another partner, it added.
By Joshua Warner; [email protected]; @JoshAlliance
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