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Chariot sticks to Namibia oil search after failed wells

BY PAUL BURKHARDT

GUERNSEY (Bloomberg) -- Chariot Oil & Gas, a United Kingdom energy explorer in Africa, said it’s continuing to search for oil in Namibia even after competitors failed to find crude.

“The nature of exploration is portfolio management; not everything is successful,” CEO Larry Bottomley said in an interview. His company has slumped 35% this year in London trading, tumbling 18 % on one day in February after abandoning a well in Namibia. “Investors are turning away but the industry is not,” Bottomley said in Cape Town.

Namibia has attracted attention from the world’s biggest oil companies even after 18 wells in past decades failed to find commercial deposits of crude. Explorers such as BP and Repsol have snapped up assets on a bet that the nation’s coastal shelf may mirror that of Brazil across the Atlantic.

Chariot holds licenses in eight blocks in the southern African country. It plans to bring in a partner and a rig to continue exploration, according to Bottomley, who took over as CEO last December.

The company will also seek a partner for its Mauritania block, where it plans to drill in 2015, he said. Chariot will decide where to drill in the C-19 Block in the Q1, according to Bottomley, who estimates the cost of the well at $85 million to $200 million depending on its depth and location.

Chariot, the operator of the offshore block with a 55 % stake, is already working with Cairn Energy at the site. Cairn, with a 35 % interest, has a rig that may speed up the timeframe for drilling, Bottomley said.

The West African country also has attracted Tullow Oil and Total as explorers move farther north up Africa’s Atlantic coastline after making discoveries in Ghana, Sierra Leone and Ivory Coast.

Chariot, based on Guernsey in the Channel Islands, also has stakes in projects in Morocco and Brazil.

11/28/2013

 

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