Chariot to raise $20 million to fund offshore Angola oil production stake

(WO) - Chariot Plc plans to raise approximately $20 million through an equity placing and subscription to help finance the acquisition of a producing oil interest offshore Angola, the company announced. 

The Africa-focused energy company is working with Shell Trading and Etu Energias to support Etu’s acquisition of a working interest in Blocks 14 and 14K offshore Angola, which currently produce about 8,000 bopd. In exchange for providing initial funding, Chariot will receive economic exposure equivalent to up to 4,000 bopd from the acquired interest.

The fundraising will consist of a placing and subscription totaling about $20 million net of expenses, alongside an open offer that could raise up to an additional $4 million. Proceeds will be used to part-finance the acquisition, cover transaction-related costs and provide working capital.

Shell Western Supply and Trading is providing an acquisition financing package of up to $170 million in return for future offtake barrels. The transaction is expected to provide Chariot with exposure to producing assets and associated cash flow as the company expands its upstream portfolio.

The assets are located offshore Angola in established producing blocks, where Etu Energias is seeking to increase its working interest. Completion of the fundraising and acquisition remains subject to customary approvals and finalization of transaction terms.