Chariot Oil & Gas announces final results for year ended 31 December 2016
Wednesday, Mar 15, 2017
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company,  announces its audited final results for the year ended 31 December 2016.

2016 and Post Period Highlights:
Delivering on the Risk Management Strategy: Protecting Capital and Maximising Value in a Lower for Longer Oil Price Environment
Successful Partnering:

  • Zero cost aspiration achieved with completed Eni farm-out in Rabat Deep, Morocco: secured funding to drill the JP-1 prospect (768mmbbls gross mean prospective resources), expected in Q1, 2018
Demonstrated Capital Discipline:

  • Robust balance sheet - no debt with year-end cash position of US$25.0 million, exceeding all work programme commitments
  • Farm-in recovery of Rabat Deep investment costs received post year-end
  • Company restructuring and optimisation of key personnel resulted in annual cash overhead reduction from US$9.4 million to US$5.0 million over the last four years
  • All 2D and 3D seismic programmes opportunistically negotiated at advantageous rates
Actively Managed the Portfolio to Ensure Best Opportunity for Drilling:

  • Secured Mohammedia Offshore, Morocco - contains the LKP prospects that show significant follow-on potential in the success case of JP-1 (in adjacent acreage)
  • Award of Kenitra Offshore, Morocco - capturing the LKP prospects that extend from Mohammedia into this region
  • Decision not to enter drilling phase of licence C-19, Mauritania, without third party funding
Maturation of Portfolio for Long-Term Sustainable High Impact Drilling Programme:

  • Drill ready inventory with four prospects identified - individually transformational even at lower oil prices
  • Extensive 3D seismic programmes executed in Namibia and Brazil, fulfilling all commitments
  • 2D and 3D seismic programmes initiated across Mohammedia and Kenitra, fulfilling all commitments
  • Processing and analysis of 2D and 3D seismic data to identify further prospectivity on:
o  LKP group of prospects - high graded LKP-1a prospect estimated to contain 350mmbbls gross mean prospective resources in Mohammedia and Kenitra, Morocco (2D acquisition complete, 3D acquisition underway)
o  Matured prospects S,T,U,V & W, adding to the previously developed portfolio which includes prospect B and prospect D in the Central Blocks, Namibia (3D analysis complete)
o  Material gas prospect AO1 with a gross mean prospective resource in excess of 8Tcf in the Southern Blocks, Namibia (2D and 3D analysis complete)
o  Clear turbidite reservoir geometries extending from the shallow water in Brazil (3D analysis ongoing)
  • CPRs carried out for Namibian and Moroccan 2016 seismic analysis by Netherland Sewell and Associates ("NSAI"), confirming prospectivity
  • Active new venture screening for appropriate value accretive opportunities continued
Outlook for 2017/2018: Positioned to Deliver Transformational Growth:
  • Progress the maturation of the current portfolio using de-risking strategy
  • Continue dataroom programmes to secure funding for the delivery of transformational value through drilling three wells in next two years
  • Focus on capital discipline
  • Use expert team to identify optimum potential within the current portfolio
  • Apply opportunistic approach towards new ventures
Larry Bottomley, Chief Executive of Chariot, commented:
"Our focus on risk management has been imperative in maintaining the Company's robust position during this lower for longer oil price environment. Through our continued data acquisition and ongoing analysis we have built a drilling inventory with four giant priority prospects, each with follow on potential. Using the additional information provided from our recent operational activity and newly acquired acreage we intend to continue to refine and develop this, with the aim of drilling three wells within the next two years.
Owing to the technical capabilities of our team, our regional positioning and prudent approach to capital management we have now achieved our zero cost aspiration on one of our assets and look forward to the drilling of the giant JP-1 prospect in the coming year. Whilst we remain cognisant of the continued lower oil price environment, our aim is to seek further partners to share in the drilling of our portfolio. At the same time, we will continue to manage and de-risk the rest of the portfolio and screen additional opportunities that will add to the long-term development of our Company's value. 2017 is an exciting year and we look forward to updating our shareholders with our progress."

For more information, please visit:
Find out more about AfrOil from NewsBase