A farm-out agreement between Chariot Oil and Gas and Woodside has been approved by the Moroccan Authorities.
The company made the deal earlier this year with Woodside who committed to pay 100% of the 3D seismic acquisition and processing costs incurred across the licence by Chariot.
A spokesman said a substantial part of the funds had been received bringing its estimated cash balance to $52million.
He said: “The remaining balance of these funds is anticipated to be received during Q1 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.”
Chariot Oil and Gas will remain operator of the licence with a 50% equity interest, with the Office National des Hydrocarbures et des Mines retaining a 25% carried interest and Woodside the other 25%.
As part of the agreement, Woodside has an option to acquire a further 25% of Chariot’s equity and become Operator of the licence in return for a full well carry up to an agreed cap consistent with other farm-outs concluded in the area.