(Alliance News) - Chariot Oil & Gas Ltd said Tuesday the completed development feasibility study for the Anchois gas field offshore Morocco has demonstrated the potential for different forms of development.
Shares in the oil & gas company were down 5.2% at 4.48 pence on Tuesday in London.
As well as the development feasibility study for Anchois, Chariot also reported the completion of an assessment of the Moroccan gas market and the monetisation of the Anchois field.
The studies have revealed that development of the field is technically feasible, with the potential for either a single phase or a staged development.
Options for development include a "subsea-to-shore" concept, which consists of subsea production wells tied to a subsea manifold, from which a flowline and umbilical will connect the field to an onshore central processing facility. From there the gas will be processed and delivered to the Maghreb-Europe gas pipeline.
The studies also found that there is potential to re-enter the suspended Anchois-1 gas discovery well, which could be completed as a producer well.
The gas market assessment found that Morocco has a growing energy market with attractive prices that could underpin a commercially attractive project.
Chariot now has started an environmental impact assessment to facilitate appraisal operations in 2020.
"The results of these studies demonstrate the technical feasibility and commercial attractiveness of developing the Anchois gas discovery with the potential to offer a strategically important indigenous source of gas into Morocco's developing energy market," said Chief Executive Officer Larry Bottomley.
"We believe the combination of a de-risked resource base in a fast-growing energy market, with high gas prices and a need for increased supply remains highly attractive to a wide range of potential strategic partners throughout the energy value chain," Bottomley added.
Chariot Ltd (CHAR)