LONDON –Chariot Oil & Gas Ltd. (AIM: CHAR) has terminated a farm-out agreement with AziLat Ltd. on the BAR-M-292, BAR-M-293, BAR-M-313, and BAR-M-314 licenses in the Barreirinhas basin offshore Brazil.
Chariot said that AziLat has requested commercial amendments that Chariot does not think reflect the potential of the prospects. As a result, AziLat will not acquire a 25% working interest in the tracts, as previously planned.
Chariot has identified evidence of Cenomanian-Turonian source rock for hydrocarbon generation, supported by potential seismic direct hydrocarbon indicators. In addition, a large roll-over structure has been identified with deepwater turbidite seismic facies and fan entry points. Chariot anticipates 10 wells to be drilled in this basin, one in the adjacent block. A dataroom remains open for interested parties.