Chariot Ltd Share News (CHAR)

(Sharecast News) - Pre-revenue Atlantic margins-focussed exploration company Chariot Oil & Gas narrowed its loss before tax to $1.9m (£1.53m), it reported in its interim results on Wednesday, from $2.03m a year earlier.
The AIM-traded firm said it had an unaudited cash balance at period end on 30 June of $12.1m, adding that it had no debt, with all work commitments - totalling less than $1m - fully funded.

On the operational front, the company noted the award of a near-term development opportunity at the Lixus Offshore Licence in Morocco, where the Anchois-1 well gas discovery and its satellites offered the opportunity.

It added that the deeper prospect at Lixus offered additional prospective resource potential, with material additional on-block exploration running room in the licence.

A competent persons report on the Anchois discovery had been completed, with total remaining recoverable resource to be more than one trillion cubic feet for Anchois and its satellite prospects, comprising 2C contingent resources and 2U prospective resources.

Anchois North was confirmed as the low risk priority satellite, with 308 billion cubic feet of 2U prospective resources and a probability of geologic success of 43%.

Additional on-block prospects with a total remaining recoverable resource in excess of 1.2 trillion cubic feet of audited 2U prospective resources were also reported.

Chariot also reported that a development feasibility study and gas market assessment had been completed for the Anchois Gas Field, which revealed that development was technically feasible with the potential for either a single phase or a staged development, to commercially optimise access to different parts of the gas market.

It said Morocco had a fast-growing energy market with "strong" gas prices, that underpinned a "commercially-attractive" project.

A drilling environmental impact assessment had been initiated, with a data room for prospective partners now open.

The seismic reprocessing work programme commitment was also fully-funded, Chariot said.

Looking at its potential portfolio, Chariot reported that in Morocco the data room was open on the clastic prospects and leads, with MOH-B - gross mean prospective resource of 637 million barrels - and KEN-A - gross mean prospective resource of 445 million barrels - being priority targets, having been "significantly" de-risked by the drilling of Rabat Deep 1 in 2018.

The drilling environmental impact assessment had been approved on Kenitra and Mohammedia, and there were no remaining work programme commitments in the country, the board said.

In Brazil, the data room was also open, with the aim of securing a partner for the drilling of a single well at Prospect 1 as a fast follower.

That could penetrate the TP-1, TP-3 and KP-3 stacked targets, the firm explained, which had a summed, independently audited gross mean prospective resource of 911 million barrels.

There were no remaining work programme commitments in Brazil either.

Finally, in Namibia, the board said the Prospect S well analysis and integration of legacy data was now complete.

Prospects B, V and W possessed characteristics of the "excellent reservoir potential" of the turbidite sand systems encountered, it explained, with access to a different source kitchen.

Each prospect ranged from 284 million barrels to 469 million barrels of gross mean prospective resources.

There were no remaining work programme commitments in Namibia either, and the company noted that three third-party wells - including one in the block adjacent to Chariot's - were due to be drilled in the next year.

Looking ahead, Chariot said it was looking to secure partners to participate in the appraisal and development of the Anchois Gas Field in order to generate cash flow and sustain the broader exploration programme.

It said it was seeking to attract industry partners to drill its giant potential exploration prospects, with the aim of delivering transformational value, and added that it would continue to use its "expert in-house knowledge base" to screen for new ventures within the Atlantic margin, that would further balance its risk profile.

Chariot also said it would maintain its capital discipline throughout the business.

"Using the information acquired from the 2018 drilling campaigns we have not only been able to de-risk and refine our giant prospect portfolio, but also identified and acquired a low risk appraisal asset with the capacity to generate significant cash flow for the company," said chief executive officer Larry Bottomley.

"Chariot's risk portfolio is now balanced by a commercially attractive production opportunity, capable of sustaining the high impact exploration programmes of our giant potential prospects within the wider portfolio."

Bottomley said its cash position "substantially" exceeded its commitments and, with the "significant interest" received in its data rooms, the board was confident about its ability to achieve on its near-term goals in Morocco.

"At the same time, we remain vigilant to further new venture opportunities that can further de-risk the portfolio whilst also looking to secure additional partners to deliver wells in a fast follower position on our Namibian and Brazilian assets."