Chariot Oil & Gas Limited provide operational update
Tuesday, Feb 19, 2013

Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas exploration company, today provides an operational update across its portfolio and a revised forward-looking work programme.

Over the last year the Company has drilled two exploration wells and acquired 3,500km2 of 3D seismic data in Namibia; acquired an exploration licence and 3,500km2 of 3D seismic data in Mauritania; and secured three additional exploration licences in Morocco. The net acreage base has almost doubled to approximately 46,000 km2 over this period. Given this activity and growth, the Company has undertaken a review of its portfolio, matured the description of the prospect inventory and re-cast the forward exploration programme.

Northern Area

Analysis of the well data from Tapir South-1 has been completed. As reported on 14 May 2012, no commercial hydrocarbons were discovered and the well was plugged and abandoned. However, the proprietary information gained from this well has been beneficial, improving the Company's understanding of the hydrocarbon potential of the area so that, whilst some prospectivity has been eliminated, the risk on other prospects has been reduced.

In particular, the Zamba prospect is now a priority target whilst the Tapir trend has been removed from the prospect inventory. Zamba is interpreted to be a carbonate target overlain by salt and which is on trend with recent Angolan discoveries. Following a re-evaluation, the main part of the Zamba prospect now stands at a gross mean unrisked potential resource estimate of 375mmbbls. The partnering process has been initiated and updates on this will be provided as appropriate. Should this process be successful, the Company plans to drill this prospect in 2014.

Central Area

In the Central Area, the newly acquired 3,500km² of 3D seismic data has been interpreted and a total of 19 targets have been identified which fall into 13 prospect areas. These new targets consist of multiple reservoir types - deep water canyon heads (analogous to those found offshore Ghana), channel and fan systems and shallow water reefs, shelf-edge carbonates and clastics. These reservoirs occur in two petroleum systems, one with potential hydrocarbon charge from deeper synrift source rocks and the other from shallower deep marine source rocks.

From these targets, 11 prospects are of interest and have gross mean unrisked potential resource estimates ranging from 160mmbbls to 1.1Bbbls. The principal prospect in each of the petroleum systems are Prospect 1 and Prospect B and have gross mean unrisked prospective resources estimated at 1.1Bbbls and 570mmbbls respectively.

More leads exist outside of this 3D survey, however management is focusing on the two nearer term drillable prospects. Upcoming third party drilling in the area will further improve the understanding of the basin, enabling the Company to optimise prospect selection for subsequent drilling. In order to enable the Company to capture the value of this third party drilling, Chariot will initiate the partnering process of the Central Area in 3Q 2013, with the aim of commencing drilling in 2014.

Southern Area

Final evaluation of the Kabeljou-1 well by the Operator of the block is still underway and an update to the prospect inventory in 2714A is pending following these results, which are expected at the end of March 2013. These well evaluation results will inform the forward plan in the block which will be agreed with the partners at this time.

About Chariot

Chariot Oil & Gas Limited is an independent oil and gas exploration group.  The Group currently holds licences covering eight blocks in Namibia, through its wholly owned subsidiary Enigma Oil & Gas Exploration (Pty) Limited, one block in Mauritania through its wholly owned subsidiary Chariot Oil & Gas Investments (Mauritania) Ltd., and three blocks in Morocco through its wholly owned subsidiary Chariot Oil & Gas Investments (Morocco) Ltd. all of which are offshore.  All of these blocks are currently in the exploration phase.

Source: Chariot Oil & Gas Limited

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