(Alliance News) - Energean PLC on Wednesday announced it has completed a partnership deal in Morocco with Chariot Ltd, after receiving clearance from Moroccan authorities.
Energean is a Mediterranean-focused hydrocarbon exploration and production company, while Chariot is an Africa-focused transitional energy company.
Energean has paid USD10 million to Chariot on closure of the deal, which marks the FTSE 250 listing's first foray into Morocco.
The focal point of the venture is the Anchois gas field, which boasts 18 billion cubic metres of gross gas resources.
Energean will snap up 45% of the Lixus offshore licence, where Anchois is located. Lixus covers an area of around 1,794 square kilometres.
It will also take a stake of around 38% in the Rissana licence, and become operator of both.
Chariot will hold a 30% interest in Lixus and around 38% in Rissana.
In addition, a rig contract has been signed with Stena for the use of its Stena Forth drill ship for the appraisal well, plus one optional well.
Energean, as operator, alongside its partners, is planning to drill the appraisal well on the Anchois field in the third quarter.
Energean said the purpose of the appraisal well is to undertake a drill stem test on the main gas-containing sands and target.
Energean Chief Executive Officer Mathios Rigas said: "We are delighted to start working in Morocco, where we hope to repeat our previous successes in the Mediterranean: enhancing domestic production, helping to meet the country's growing demand, with the potential for exports for any surplus supply, and facilitating both energy security and long-term coal reduction."
Chariot Chief Executive Adonis Pouroulis said: "We are very pleased to have received formal approval from the Moroccan authorities for the transaction, for Energean to officially be our partner on the Lixus and Rissana licences and to have the rig contract signed for the Stena Forth."
Shares in Energean rose 0.3% to 1,046.00 pence in London on Wednesday morning. Chariot rose 0.9% to 9.06p.
By Jeremy Cutler, Alliance News reporter
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Energean Oil & Gas (ENOG)
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