long distance migration is possible but it is risky and capital intensive to find out, everyone would prefer to drill reservoirs directly above those prolific source rocks we have in Walvis & Orange Basin, here is where Datarooms are full of interested companies, and where drilling will take place and further light oil will be discovered the next couple of years. Tullow O&G will drill (imo) at least two wells in 2015/16, expect an announcement next month within their Interim Management Statement ( 12 Nov)..
Is that Larry and co will make the right call. Now this northern monkey is off our back we know where the focus is ..Larry hinted at Northern and the market guessed it. He has also hinted strongly at namibia central's and southern and Morocco. Mauritania is also looking very good .. Farmouts soon - and the market is behind the curve on those ones
Absolutely no issue in this, good thing if you ask me. Release time, energy and funds for where they need to be.. However It is poignantly clear the company must realise it should be offsetting this type of stuff with news on our positive prospects... It seems to me there could have been an RNS co released to update us long term sufferers / believers if they really wanted to... Their IR again seems to me to not want to do anything to build confidence . Let's see how the market reacts to a relinquishment of a portfolio valued by the same market as a negative asset portfolio....
Good point. Nothing lost except a millstone that attracted scant interest from potential farmees, took lots of our time and was valued at zero by the market. If Char thought there was anything worth hanging on to, they'd have hung on. It will be interesting to see if anyone else snaps it up, given that it will be the only Namibian licence available.
Northern Blocks were only a fraction of Chariot's Portfolio It was quite clear that Chariot would drop the Northern Blocks as they've suggested within their latest presentations. No Source - No Drilling - No waste of Work & Money Central & Southern Blocks are where to put efforts in Namibia because here is where we have hundreds of metres of proven prolific source rocks to potentially fill our reservoirs with billions of barrels of light oil, here is where we want to see the drillbit turning, not to forget Chariot's licenses in Mauritania, Morocco and Brazil.. who cares about the northern blocks...pfff..
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company today announces that it has opted not to apply for a new exploration licence in the Northern Blocks 1811A&B, offshore Namibia, with the current licence due to lapse on the 26 October 2014.
The Chariot team has analysed significant amounts of proprietary seismic and well data, as well as integrated information from third party drilling activity to study the possibility for long range hydrocarbon migration to the Zamba prospect. This work, however, has not significantly de-risked the prospect and, given that a new licence would entail significant additional investment both in capital and time, management considered it too high risk to justify further near term exploration expenditure. Whilst Chariot considers the acreage to remain prospective, this decision was made in line with the Company's focus on portfolio management and capital discipline.
Larry Bottomley, CEO commented:
"The goal of the Company is to deliver transformational growth through the discovery of material accumulations of hydrocarbons. Exploration is a risk business, and managing this risk will be key to our success. It is for this reason that Chariot views its fast follower positioning as crucial to its strategy, as this allows the Company to make informed decisions from an optimised knowledge base. Furthermore, with the diversity we now have in our portfolio, Chariot can manage its assets in terms of risk and their associated fit within the aspiration of zero cost exploration. The Company will continue with this strict capital discipline and build on its asset base in order to maintain this optionality and generate opportunities for a sustainable drilling campaign.
Namibia continues to be a key focus for Chariot as we believe this region has the potential to be a world-class hydrocarbon province. We remain excited about the prospectivity we see in our recently re-awarded Central and Southern licences which we aim to further de-risk as we progress with our exploration campaigns."
The acreage (all our acreage) was valued at zero a long time back and we are at a discount to cash. Focus is on Centrals and southern where SHELL, Murphy, OMV and black star bought in earlier this year. Eco are currently doing 3d seismics with Tullow for a reason
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