Chariot backs out of licenses offshore southern Namibia

Chariot Oil and Gas has opted not to enter the first renewal exploration period of exploration licenses for two blocks offshore southern Namibia.

Offshore staff

LONDONChariot Oil and Gas has opted not to enter the first renewal exploration period of exploration licenses for two blocks offshore southern Namibia.

The company, which operates blocks 2714A and 2714B in partnership with Quiver and state-owned NAMCOR, says the withdrawal process is under way.

Chariot had acquired around 2,128 km (1,322 mi) of 2D seismic data, pre-funded the ION NamibiaSPAN long offset 2D seismic data program, and reprocessed legacy 3D data over the blocks.

Its analysis, including integration of the results with regional well data, had identified the AO1 and AO2 gas prospects in the Aptian clastic onlap play.

Although the work attracted industry, the technical risk associated with these prospects deterred potential partners from committing to exploration drilling at current oil prices.

However, Chariot has agreed on the framework of an option to back-in for 10% ground floor equity from the remaining two partners following the drilling of the first exploration well in each of the licenses.

CEO Larry Bottomley said: “While supporting the remaining partners in these efforts, our operational focus is on preparing for the drilling program in Morocco, progressing preparations to drill in the Central blocks in Namibia, and launching the partnering process in Brazil.”

08/29/2017

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