16th Jun 2016 15:04
(Correcting headline to clarify Chariot is not renewing Mauritania license.)
LONDON (Alliance News) - Chariot Oil & Gas Ltd on Thursday said it has been awarded new exploration permits in Morocco and has declined to renew a licence in Mauritania.
Chariot said its Chariot Oil & Gas Investments (Morocco) Ltd arm has been awarded a 75% interest and operatorship of the Mohammedia offshore permits 1 to 3. The licences have been awarded by the Office National des Hydrocarbures et des Mines, which will hold a 25% carried interest in the licences.
The Mohammedia permits are near the shore and cover around 4,600 square kilometres, Chariot said. They are adjacent to its existing Rabat deep offshore exploration permits.
"Chariot is pleased to be able to convert the Mohammedia Reconnaissance licence into exploration permits as a result of the technical de-risking gained from our 2014 3D seismic campaign in Morocco," said Larry Bottomley, Chariot's chief executive.
In a separate statement, the firm also said it has elected not to enter in the first renewal phase for the C-19 licence in Mauritania.
Chariot said the work it undertook to de-risk the licence attracted some industry interest, but none of the potential discussions led to a firm deal within the required timeframe.
"Whilst we have been unsuccessful in attracting third-party funding for an exploration well in C-19, we have substantially achieved our aspiration of zero-cost exploration on this licence. While it is clearly disappointing, it is important that the Company maintain discipline in the management of risk, allocation of capital and in developing those parts of the portfolio likely to yield drilling opportunities," added Bottomley.
Shares in Chariot were down 11% to 6.53 pence Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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