RE: Curious10 Jul 2023 21:21
New Onshore Moroccan Licence
The Directors anticipate that the Group will be awarded the new onshore Moroccan Licence by ONHYM, which is expected to be signed imminently. This licence would offer a near term and low-cost drilling opportunity, with a direct route to market and the potential to accelerate Chariot's timeframe to first gas. The area covered by the new onshore Moroccan Licence is an overlooked, conventional, shallow gas play in a basin with a high historic success rate of 80-85% and low development costs. Although the Directors anticipate that this licence will be awarded imminently, there can be no guarantee of such award being made until the licence is signed by ONHYM. A further announcement in respect of this will be made at that time.
The new onshore Moroccan Licence has geological and geophysical similarities to Chariot's offshore licences and is located close to existing infrastructure, as well as the planned processing facilities and onshore pipelines for the Anchois Gas Development. It is also close to the industrial offtake market with the potential to rapidly monetize production through the recently announced gas-to-industry partnership with Vivo Energy. Multiple drill ready prospects have already been identified on existing 3D seismic data and gas and reservoir presence has been proven on-block from previous exploration wells; drilling one target well could de-risk and unlock a wider group of geologically-linked prospects.
The Directors plan to pursue the material upside potential within this block and kick start a drilling campaign as quickly as possible. A four well work programme is planned, targeting high-graded prospects ranging from 8-18 Bcf of best estimate prospective resource potential (Chariot preliminary internal estimates). With rigs available in-country, the Directors expect the well programme to be carried out in the near term. Each well is expected to cost approximately US$3 million to drill. The Directors anticipate that first gas production from the new onshore Moroccan Licence could commence ahead of Anchois development cashflows. The drilling of these wells will also have important read-through to the offshore prospect portfolio due to the reservoir fairways that extend across the areas. It is expected that the terms of the new onshore Moroccan Licence will be substantively similar to the terms of the Company's existing Moroccan licences.
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