Chariot Oil & Gas is covered for its near-term work commitments but to step ahead it must sign up partners for its various projects.
The company has opportunities ranging from a near-term gas development project, Anchois, in Morocco, to much grander plans for deepwater exploration targeting hundreds of millions of barrels.
“Our cash position substantially exceeds our commitments and, with the significant interest received in our data rooms, we are confident about our ability to achieve on our near-term goals in Morocco. At the same time, we remain vigilant to further new venture opportunities that can further de-risk the portfolio whilst also looking to secure additional partners to deliver wells in a fast follower position on our Namibian and Brazilian assets,” said Chariot’s CEO Larry Bottomley. Chariot has $12.1 million in cash, with no debt, while work commitments are around $1mn.
The company was involved in the drilling of two wells in 2018, in Morocco and Namibia. Neither were commercially successful. Bottomley said these had reduced the risk on its prospect portfolio, though.
The Lixus Offshore licence, in Morocco, holds the Anchois discovery. Chariot was awarded the licence in April, saying at the time the well was believed to hold 307 billion cubic feet of gas on a 2C contingent resource basis. There is believed to be further potential in a deeper target, of 116 bcf, with another five prospects in the area holding a prospective resource of 1.2 trillion cubic feet, according to Netherland Sewell & Associates Inc. (NSAI).
The company has opened a data room on the project and reported “significant” interest. An environmental impact assessment (EIA) has begun on appraising Anchois, with drilling potentially starting in 2020.
In addition to the Anchois plan, Chariot is also shopping opportunities for exploration in Morocco, Namibia and Brazil.
Two prospects have been identified in Morocco, the MOH-B and KEN-A, with gross mean prospective resources assessed at 637 million barrels and 445mn barrels respectively. In Brazil, Chariot aims to bring in a partner for its Prospect 1, which have gross mean prospective resources of 911mn barrels. While in Namibia, three prospects have been identified, potentially holding 284 to 469mn barrels. Exploration work is warming up again in Namibia, with Total planning to drill the Venus well shortly. No commercial finds have yet been made in the country but it is considered to be under explored.