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Chariot granted new licenses in Namibia

LONDON -- Chariot Oil & Gas has announced an update on its Namibian portfolio, its repositioning in the region and forward work program across these licenses. The London-based company has been granted a new license for blocks 2312 and 2412A -- the Central blocks -- and for Southern block 2714A.

Within the Central blocks, Chariot has been awarded a new license (covering blocks 2312 A&B and 2412 A&B (Northern Halves)), and these have been renamed as blocks 2312 and 2412A. At the end of August 2014, the preceding license was due to enter into the drilling phase. In order to ensure that Chariot is able to maintain a leveraged position and secure the best possible commercial terms during partnering negotiations, the company' s management determined that it would be strategically advantageous to remove this obligation from the license. As a result, and in alignment with its partner, AziNam Limited, Chariot chose to relinquish the license and secure a new license with no well commitment in the initial exploration phase.

As a result of the reapplication and successful re-award of this license, Chariot' s wholly-owned subsidiary, Enigma Oil & Gas PTY, remains operator with a 65% equity interest in the blocks, AziNam hold 20% and NAMCOR and a local partner, Ignitus Oil and Gas (PTY), hold a 10% and 5% carried interest respectively.

As a result of this new award, the license enters the initial exploration period which has a duration of three years and a work program commitment requiring the acquisition and processing of up to 1,500 sq km of 3D seismic within this timeframe. This agreement covers the same area as the previous license, 16,800 sq km, and commenced Aug. 27.

Industry interest in Namibia remains high with several major oil companies having recently entered the country. These companies have entered on seismic options allowing them to act as fast followers. For this reason, Chariot has also positioned itself in the Central blocks in order to provide this optionality to interested parties that may seek further technical development on the license prior to drilling.

In the south, the partnership of Petrobras, BP and Chariot has elected not to apply for entry into the second renewal exploration period of Block 2714A, which would have triggered a well commitment.
 
Following the integration of the Kabeljou well results and recent third-party drilling, Chariot continues to see significant potential within this block as well as in the adjacent Block 2714B. As a result, Chariot reapplied for and was awarded Block 2714A, under the new license granted to Chariot' s wholly-owned subsidiary, Enigma (operator, 85%), NAMCOR (10%) and Quiver Oil & Gas (PTY) Limited (5%), the same partner group as for Block 2714B. In doing this Chariot is now exposed to, and operator of, both the deeper, Kudu play prospectivity and the Cretaceous fan fairway identified in the shallower petroleum system within this Southern region.
 
The license covers the same area, 5,480 sq km, and commenced Aug. 27. The initial exploration period has a three-year duration with a work program requiring the acquisition, or cost equivalent, of acquiring 2,000 line km of 2D seismic data. This will allow Chariot to evaluate the prospectivity of the Southern blocks with a broader view prior to designing its 3D survey and maturing its prospect selection in this region further.

In the Northern blocks, the results of the recently drilled Welwitschia well are being incorporated with Chariot' s proprietary data to evaluate remaining prospectivity.
  
Chariot' s dataset in Namibia, which consists of two well results and 8,000 sq km of 3D seismic data, alongside that of third party activity over the last 18 months, has provided evidence that all elements of three working petroleum systems are present offshore Namibia.
 
"Namibia continues to be a sizeable part of our portfolio and we see the potential for transformational value within our acreage. Namibia remains a frontier area for exploration, and managing the associated risks remains the focus of the Company. These awards allow us to position our Namibian portfolio as a fast follower, and continue our strategy of sharing risk through partnering. The combination of our knowledge, low-level commitments and recently enhanced financial strength form a solid foundation for our partnering negotiations and decision making,” said Larry Bottomley, Chariot’s CEO.

08/28/2014

 

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