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11 Sep 2008 12:26
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11thΒ September 2008Β
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Successfully secures onshore exploration blocks in Peru with partnerΒ Jindal Steel and Power LimitedΒ
Chariot Oil & Gas Limited,Β anΒ independent oil and gas exploration group,Β is pleased to announce that further to a successful bid process, its wholly-owned subsidiary, Enigma Oil and GasΒ ExplorationΒ Pty LimitedΒ ("Enigma") andΒ consortiumΒ partnerΒ Jindal Steel and Power LimitedΒ ("JSPL"), haveΒ securedΒ the exploration rights to three onshoreΒ blocks inΒ the MaraΓ±on andΒ HuallagaΒ basins in northernΒ Peru.Β The MaraΓ±on,Β in which two of the blocks are situated,Β isΒ alreadyΒ a proven petroleum basinΒ andΒ currently producesΒ 38,700 barrels of oil per day.Β Β
Enigma andΒ JSPL,Β a subsidiary ofΒ theΒ JindalΒ OrganisationΒ -Β the US$10 billion Indian steelΒ conglomerate -Β jointly bid onΒ theΒ threeΒ onshore blocks in Peru withΒ EnigmaΒ takingΒ aΒ 50%Β interestΒ inΒ block 159 in the MaraΓ±on basin,Β andΒ aΒ 20%Β interestΒ in the other two;Β block 147 also inΒ theΒ MaraΓ±on andΒ block 153 inΒ theΒ HuallagaΒ basin.Β The blocks compriseΒ in aggregateΒ a gross area ofΒ 19,567kmΒ²Β - aΒ net aggregate ofΒ 6,070kmΒ².Β Due toΒ its technical qualifications and expertise,Β Enigma isΒ the designated operator.Β
The blocksΒ of interest had been previously appraised by HRT Petroleum Ltda ("HRT"), the global petroleum system specialists working on Chariot's blocks on and offshoreΒ Namibia, on behalf of Chariot and Enigma. Two of the three blocksΒ represent a unique opportunity whereΒ HRT'sΒ diamondoidΒ and biomarker technology can be employed to look for deeper source rocks and reservoirs in anΒ area of the world where shallower well tests predominate.Β
As part of the bid process, Enigma andΒ JSPLΒ submitted aΒ proposedΒ work programΒ that requiresΒ theΒ reprocessing ofΒ existing 2dΒ seismicΒ dataΒ and willΒ performΒ a combination of 2d seismicΒ acquisition, gravity and magnetic dataΒ acquisition and wells.Β
TheΒ exploration phase comprisesΒ fiveΒ periods which cover aΒ sevenΒ year time frame. This can be extendedΒ byΒ an additionalΒ threeΒ years, withΒ a variety of relinquishment decisions and additional work program commitments required along the way.
The net amount inΒ work program performanceΒ guarantees which Enigma has committedΒ toΒ the bidΒ isΒ approximatelyΒ US$4m, althoughΒ the GroupΒ will recover thisΒ guaranteeΒ against the workΒ as it is carried out.Β
Kevin Broger, CEO of ChariotΒ Oil & Gas plcΒ said:Β "We areΒ delightedΒ to have been successfulΒ in this bid processΒ as we consider thisΒ to beΒ a key opportunity for the CompanyΒ and isΒ very much in line withΒ ourΒ statedΒ strategy ofΒ looking for opportunities in order to enhance and balance the Group's portfolio.Β These blocksΒ provideΒ Chariot withΒ a presence in a provenΒ petroleum province inΒ South America,Β aΒ strongΒ financialΒ partner in JSPLΒ andΒ operator status in an emergingΒ regionΒ whereΒ we can utilise theΒ considerable technical expertiseΒ and specialist technologiesΒ of HRT."
For further information please contact:
Chariot Oil & Gas Limited +44 (0)20 7357 9477
Kevin Broger, CEO
KPMG Corporate Finance (Nominated adviser) +44 (0)20Β 7311 1000
Susan Walker
Hogarth Partnership +44 (0)20 7357 9477
Julian Walker,Β Simon Hockridge
NOTES TO EDITORS
About Chariot
Chariot Oil & Gas Limited (www.chariotoilandgas.com)Β isΒ an independent oil and gas exploration group, using state of the art technology for offshoreΒ and onshoreΒ exploration.
The Group currently holdsΒ licencesΒ covering ten Blocks inΒ Namibia, eight of which are offshore and two of which are onshore. All of these Blocks are currently in the exploration phase. In order to progress such exploration, the Group has engaged the services of a global petroleum system specialist, High Resolution Technology & Petroleum Ltda ("HRT") as the Group's independent technical consultant. HRT Petroleum has extensive experience of the application of deep water technologies in the discovery of new oil and gas fields from its prior work on the South Atlantic margins (primarily in Brazil but also in western Africa). HRT has developed specialist technologies which have previously led to large discoveries offshoreΒ BrazilΒ and these are being applied to Chariot's Blocks. The exploration focus to date has been to use this expertise and state of the art technology to build a basin model forΒ Namibia.
Shares in Chariot Oil & Gas limited were admitted to the London Stock Exchange (AIM) on 19Β May 2008, under the symbol 'CHAR'.
AboutΒ Jindal Steel and Power Limited
Jindal Steel and Power Limited is one of the leaders inΒ steelΒ manufacturing and power generation inΒ IndiaΒ and is part of the US$10 billion Jindal Organization.Β
For further information, please see their websiteΒ -Β www.jindalsteelpower.comΒ
AboutΒ Peru's Oil Industry:
PeruΒ had 380 million barrels of proven oil reserves in 2007, producing 113,000 barrels a day of total oil liquids (Oil and Gas Journal).Β Peru's crude oil production is produced in the northern part of the country and has six major oil refineries. Operators in country include Argentina-based Pluspetrol, state owned oil company Petroperu, Petrobras, Hunt Oil, Talisman,Β EcoPetrol andΒ Perenco.
KPMG Corporate Finance, a division of KPMG LLP which is authorized and regulated by the Financial Services Authority for investment business activities, is acting for the Company as nominated advisor in relation to the matters set out in this announcement and is not acting for any other person in relation to these matters. KPMG Corporate Finance will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement.
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