31st Oct 2011 07:00
31 October 2011
Chariot Oil & Gas Limited
('Chariot', 'the Company' or 'the Group')
Technical Update
Improved Chance of Success and Increase in Gross Mean Unrisked Prospective Resources
Chariot Oil & Gas Limited (AIM:CHAR), the Africa focused oil and gas exploration company is pleased to announce that, as a result of further geological and seismic work on the Tapir trend in Northern Blocks 1811 A & B, it has increased the chance of success of the Tapir South prospect from 19% to 25%. The improvement is primarily due to the recognition of multiple four way dip closures that contain deep marine channel sandstone geometries which are adjacent to a well defined oil charge kitchen. As a result the Tapir South prospect is now the preferred first drilling target with the greatest chance of success and well planning is at an advanced stage.
Additionally, in the Central Blocks, reprocessing and reinterpretation of the full 3,000km of existing 2D seismic data, previously acquired by Chariot, has identified 11 new leads attributing an aggregate mean unrisked resource potential of 3.9 billion barrels ("Bbbls"). These leads lie in the northeast section of the acreage and occur in several different target intervals within both structural and stratigraphic traps. These include analogues to the "Nimrod" feature identified in the Southern blocks. Recently completed studies indicate that two source rock levels are mature for oil generation in this northeast area and as a result this section of the block offers the greatest chance for delivering multiple drillable prospects. Consequently, the 3D survey has been increased in size to 3500km2 to cover the 11 leads identified and is due to commence at the beginning of November. It should be noted that the leads previously identified remain attractive exploration targets that will be a priority for future exploration activity.
As a result of this recent technical work Chariot's gross mean unrisked prospective resources have increased from 16.1 Bbbls to 20.0 Bbbls (with net increase to Chariot from 8.9 Bbbls to 12.5 Bbbls).
Paul Welch, Chief Executive of Chariot, said:
"We are pleased that this further geological and geophysical work has led to a de-risking of the Tapir region enabling us to move the drilling campaign forward with increased confidence. Additionally, the increase in prospective resources not only affirms further potential within our Central Blocks but also provides the Company with a broader array of targets to focus on in the future."
Gross attributable to Licence in MMbbl | Net attributable to Group MMbbl | ||||||||||||
Probabilistic Volume Method | Low | Best | High | Low | Best | High | Risk | Working | |||||
Region | Status | (Monte Carlo Simulation) | Estimate | Estimate | Estimate | Estimate | Estimate | Estimate | Factor(2) | Interest | Operator | ||
P90 | P50 | P10 | Mean | P90 | P50 | P10 | Mean | (%) | (%) | ||||
North | Prospect | Tapir North | 298 | 708 | 1,552 | 836 | 298 | 708 | 1,552 | 836 | 21% | 100% | Enigma |
North | Prospect | Tapir | 188 | 241 | 303 | 244 | 188 | 241 | 303 | 244 | 21% | 100% | Enigma |
North | Prospect | Tapir South | 451 | 592 | 774 | 604 | 451 | 592 | 774 | 604 | 25% | 100% | Enigma |
North | Prospect | Zamba North | 23 | 31 | 42 | 32 | 23 | 31 | 42 | 32 | 12% | 100% | Enigma |
North | Lead | Tapir Northeast | 61 | 76 | 93 | 77 | 61 | 76 | 93 | 77 | 14% | 100% | Enigma |
North | Lead | Zamba | 633 | 932 | 1,381 | 977 | 633 | 932 | 1,381 | 977 | 15% | 100% | Enigma |
Total Northern Block Oil(1) | 1,654 | 2,580 | 4,145 | 2,770 | 1,654 | 2,580 | 4,145 | 2,770 | 100% | ||||
South | Prospect | A | 149 | 270 | 456 | 289 | 37 | 68 | 114 | 72 | 10% | 25% | PB |
South | Prospect | B | 146 | 246 | 394 | 260 | 37 | 62 | 99 | 65 | 18% | 25% | PB |
South | Prospect | C | 423 | 742 | 1,243 | 797 | 106 | 186 | 311 | 199 | 9% | 25% | PB |
South | Prospect | D | 47 | 83 | 137 | 88 | 12 | 21 | 34 | 22 | 10% | 25% | PB |
South | Prospect | Dora North | 186 | 561 | 1,315 | 664 | 47 | 140 | 329 | 166 | 13% | 25% | PB |
South | Prospect | Dora South | 174 | 604 | 1,493 | 741 | 44 | 151 | 373 | 185 | 13% | 25% | PB |
South | Prospect | Isabel | 58 | 139 | 286 | 159 | 15 | 35 | 72 | 40 | 14% | 25% | PB |
South | Prospect | K | 248 | 518 | 979 | 571 | 62 | 130 | 245 | 143 | 10% | 25% | PB |
South | Prospect | L | 120 | 205 | 328 | 217 | 30 | 51 | 82 | 54 | 10% | 25% | PB |
South | Prospect | Mary | 100 | 265 | 572 | 307 | 25 | 66 | 143 | 77 | 15% | 25% | PB |
South | Prospect | Nimrod | 2,524 | 4,361 | 7,938 | 4,869 | 631 | 1,090 | 1,985 | 1,217 | 24% | 25% | PB |
Total Southern Block Oil(1) | 4,176 | 7,994 | 15,141 | 8,962 | 1,044 | 1,999 | 3,785 | 2,241 | 25% | ||||
Central | Lead3 | Springbok | 58 | 107 | 189 | 117 | 53 | 96 | 170 | 105 | 12% | 90% | Enigma |
Central | Lead3 | Springbok East | 58 | 106 | 186 | 116 | 52 | 95 | 167 | 104 | 12% | 90% | Enigma |
Central | Lead3 | Eta | 68 | 124 | 219 | 136 | 61 | 112 | 197 | 122 | 10% | 90% | Enigma |
Central | Lead3 | Springbok North | 74 | 132 | 229 | 144 | 66 | 119 | 206 | 130 | 10% | 90% | Enigma |
Central | Lead3 | Delta 1 | 438 | 790 | 1,368 | 858 | 394 | 711 | 1,231 | 772 | 11% | 90% | Enigma |
Central | Lead3 | Delta 2 | 131 | 237 | 411 | 257 | 118 | 213 | 370 | 231 | 11% | 90% | Enigma |
Central | Lead3 | Delta 3 | 107 | 193 | 335 | 210 | 96 | 174 | 302 | 189 | 11% | 90% | Enigma |
Central | Lead3 | Reef 1 | 161 | 285 | 478 | 305 | 145 | 257 | 430 | 275 | 9% | 90% | Enigma |
Central | Lead3 | Reef 2 | 225 | 398 | 670 | 427 | 203 | 358 | 603 | 384 | 9% | 90% | Enigma |
Central | Lead3 | Lead A | 402 | 729 | 1,262 | 791 | 362 | 656 | 1,136 | 712 | 8% | 90% | Enigma |
Central | Lead3 | Lead B | 312 | 562 | 974 | 611 | 281 | 506 | 877 | 550 | 8% | 90% | Enigma |
Central | Lead | Hartebeest | 502 | 1,489 | 3,287 | 1,720 | 452 | 1,340 | 2,958 | 1,548 | 7% | 90% | Enigma |
Central | Lead | Klipspringer | 587 | 1,772 | 3,916 | 2,055 | 528 | 1,595 | 3,524 | 1,850 | 7% | 90% | Enigma |
Central | Lead | Oryx | 157 | 467 | 1,025 | 543 | 141 | 420 | 923 | 489 | 6% | 90% | Enigma |
Total Central Block Oil(1) | 3,280 | 7,391 | 14,549 | 8,290 | 2,952 | 6,652 | 13,094 | 7,461 | 90% | ||||
Total Northern, Central and Southern(1) | 9,109 | 17,965 | 33,835 | 20,021 | 5,649 | 11,231 | 21,024 | 12,471 | |||||
This table of unrisked prospective resources is as determined by Netherland, Sewell & Associates, Inc. dated 30th June 2011 together with updated volumes and risk factors for the 1811 prospects and 2312a and 2312b leads as determined by Chariot.
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(1) | Total resource numbers are arithmetically summed in accordance with SPE 2007 PRMS guidelines; therefore, these totals do not include the portfolio effect that might result from statistical aggregation. Sums may not add because of rounding. | ||||||||||||
(2) | Many of the prospects and leads in the Northern and Southern blocks have multiple horizons with independent chances of success. The stated risk factors; however, are consistent with the given volumes. | ||||||||||||
(3) | Leads identified from reprocessed 2D seismic data in area of proposed 3D seismic survey | ||||||||||||
QUALIFIED PERSON
Martin Richards, Chariot's Development Engineering Manager, is the qualified person for the purpose of this release. Martin has worked in the oil and gas industry for over 30 years and has an in-depth experience of all aspects of subsurface management, reservoir engineering and petroleum economics. He has an MA in Physics from Oxford University, an MSc in Geophysics and Planetary Physics from Newcastle University and an MEng in Petroleum Engineering from Heriot-Watt University. He is a member of the Society of Petroleum Evaluation Engineers. He has read and approved the technical disclosures in this announcement.
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NOTES TO EDITORS
About Chariot
Chariot Oil & Gas Limited (www.chariotoilandgas.com) is an independent oil and gas exploration group. The Group currently holds licences covering eight blocks in Namibia, all of which are offshore. All of these blocks are currently in the exploration phase.
Shares in Chariot Oil & Gas limited are admitted to trading on the AIM Market of the London Stock Exchange under the symbol 'CHAR'.
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