(MENAFN- ProactiveInvestors - UK) Chariot Oil & Gas Limited (LON:CHAR) told investors it has exited an exploration project in Mauritania, and secured a new venture in near-shore assets in Morocco.
The company said it decided not to enter the first renewal phase of the C-19 licence, offshore Mauritania, where it de-risked with seismic but was unable to bring in a farm-out partner for drilling.
''While it is clearly disappointing, it is important that the company maintain discipline in the management of risk, allocation of capital and in developing those parts of the portfolio likely to yield drilling opportunities,'' said Larry Bottomley, chief executive.
In Morocco, meanwhile, the company has been awarded a 75% interest and operatorship of the Mohammedia Offshore Exploration Permits I III, which span 4,600 square kilometres. The company says the area contains a number of proven and potential play systems.
"Chariot is pleased to be able to convert the Mohammedia Reconnaissance licence into exploration permits as a result of the technical de-risking gained from our 2014 3D seismic campaign in Morocco,'' Bottomley said.
The area is adjacent to Chariot''s existing Rabat Deep Offshore exploration permits, where the company recently farmed out a 40% stake to Eni.
Rabat Deep''s JP-1 exploration target , which is the basis of the Eni farm-out, is interpreted to lie along the western margin of the Mohammedia permits, Chariot explained.
Past seismic work in the Mohammedia area has seen prospects identified in the range of 50mln to 289mln barrels of prospective oil resources.
Presently though most of the Mohammedia area has little seismic coverage.
Chariot plans to acquire at least 2,000 kilometres of 2D seismic to assess the nature and extent of the play systems in this under-explored region. And a separate 3D seismic programme will cover 250 square kilometres.
Both seismic programmes are expected to take place during 2017.
"The company intends to mature the prospectivity in the Mohammedia permits through the acquisition of additional seismic programmes,'' Bottomley added.
''We also have the potential to realise additional de-risking of the petroleum system from the drilling of the JP-1 prospect in the neighbouring Rabat Deep permits.
''Chariot has previously announced partnering on Rabat Deep, in which the company will retain 10% equity for a carry in JP-1 to a cap in excess of expected well cost, which we anticipate to occur in 2017.''
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