LONDON (Alliance News) - Shares in Chariot Oil & Gas Ltd jumped Friday after it said it has signed a farm-out agreement with Australian exploration and production company, Woodside Petroleum Ltd, for the Rabat Deep prospect offshore Morocco.
Chariot Oil & Gas shares were up 5.4% at 19.89 pence Friday morning.
The oil and gas exploration company said under the terms of the farm-out agreement, Woodside will acquire a 25% working interest in the Rabat Deep Offshore permits I-VI in Morocco, in return for paying 100% of Chariot's 3D seismic data costs incurred in Rabat Deep, back costs on the block and a carry on additional data acquisition.
There is also an option for Woodside to fund the costs of an exploration well to an agreed cap for a further 25% equity interest and operatorship.
Chariot currently retains operatorship with a 50% equity interest, and ONHYM has the remaining 25% carried interest. ONHYM is the Office National des Hydrocarbures et des Mines, the state oil and mining company of Morocco.
"As well as progressing our Moroccan acreage we will be using the funds from this farm-out to expedite our work programmes throughout the portfolio," said Chariot Chief Executive Officer Larry Bottomley in a statement.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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