LONDON (Alliance News) - Chariot Oil and Gas Ltd Thursday said it is reviewing potential new ventures and said it will spend USD26.1 million in 2015 on developing its existing assets whilst continuing to deliver its "zero cost" exploration strategy.
The company is debt free and reported a cash position of USD53.5 million at the end of December. Chariot is fully funded to carry out all of its commitments and said its continues to deliver its "zero cost exploration" strategy.
During the course of 2015, several wells are expected to be drilled by other operators in Morocco, Mauritania and Namibia, with ten wells due to be spud in the Barreirinhas basin, Brazil, in the next three years, said Chariot.
Chariot said it has re-evaluated its new venture opportunities, and decided not to pursue a new license it applied for in July 2014. The company said the license remains attractive, but does not plan to follow-up the application due to the current market. Chariot did not specify which licence it will not pursue.
Chariot still intends to spend USD7.5 million on new venture opportunities, specifically on lower risk projects including those that may be "distressed" or "previously unobtainable" in order to grow its portfolio.
In 2015, the company will spend USD26.1 million on developing its existing assets, including USD9.8 million in Brazil, USD5.8 million in Namibia, USD2.0 million in Morocco and another USD2.0 million in Mauritania, with the balance being spent on business development and administrative costs.
Chariot shares were down 1.1% to 8.03 pence per share on Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Chariot (CHAR)