Chariot Regulatory News (CHAR)

11 Sep 2008 12:26



11th September 2008 

Chariot Oil & Gas Limited

("Chariot", the "Company" or the "Group")

Successfully secures onshore exploration blocks in Peru with partner Jindal Steel and Power Limited 

Chariot Oil & Gas Limited, an independent oil and gas exploration group, is pleased to announce that further to a successful bid process, its wholly-owned subsidiary, Enigma Oil and Gas Exploration Pty Limited ("Enigma") and consortium partner Jindal Steel and Power Limited ("JSPL"), have secured the exploration rights to three onshore blocks in the Marañon and Huallaga basins in northern Peru. The Marañon, in which two of the blocks are situated, is already a proven petroleum basin and currently produces 38,700 barrels of oil per day.  

Enigma and JSPL, a subsidiary of the Jindal Organisation - the US$10 billion Indian steel conglomerate - jointly bid on the three onshore blocks in Peru with Enigma taking a 50% interest in block 159 in the Marañon basin, and a 20% interest in the other two; block 147 also in the Marañon and block 153 in the Huallaga basin. The blocks comprise in aggregate a gross area of 19,567km² - a net aggregate of 6,070km². Due to its technical qualifications and expertise, Enigma is the designated operator. 

The blocks of interest had been previously appraised by HRT Petroleum Ltda ("HRT"), the global petroleum system specialists working on Chariot's blocks on and offshore Namibia, on behalf of Chariot and Enigma. Two of the three blocks represent a unique opportunity where HRT's diamondoid and biomarker technology can be employed to look for deeper source rocks and reservoirs in an area of the world where shallower well tests predominate. 

As part of the bid process, Enigma and JSPL submitted a proposed work program that requires the reprocessing of existing 2d seismic data and will perform a combination of 2d seismic acquisition, gravity and magnetic data acquisition and wells. 

The exploration phase comprises five periods which cover a seven year time frame. This can be extended by an additional three years, with a variety of relinquishment decisions and additional work program commitments required along the way.

The net amount in work program performance guarantees which Enigma has committed to the bid is approximately US$4m, although the Group will recover this guarantee against the work as it is carried out. 

Kevin Broger, CEO of Chariot Oil & Gas plc said: "We are delighted to have been successful in this bid process as we consider this to be a key opportunity for the Company and is very much in line with our stated strategy of looking for opportunities in order to enhance and balance the Group's portfolio. These blocks provide Chariot with a presence in a proven petroleum province in South America, a strong financial partner in JSPL and operator status in an emerging region where we can utilise the considerable technical expertise and specialist technologies 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)20 7311 1000

Susan Walker

Hogarth Partnership +44 (0)20 7357 9477

Julian Walker, Simon Hockridge

NOTES TO EDITORS

About Chariot

Chariot Oil & Gas Limited (www.chariotoilandgas.com) is an independent oil and gas exploration group, using state of the art technology for offshore and onshore exploration.

The Group currently holds licences covering ten Blocks in 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 offshore Brazil 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 for Namibia.

Shares in Chariot Oil & Gas limited were admitted to the London Stock Exchange (AIM) on 19 May 2008, under the symbol 'CHAR'.

About Jindal Steel and Power Limited

Jindal Steel and Power Limited is one of the leaders in steel manufacturing and power generation in India and is part of the US$10 billion Jindal Organization. 

For further information, please see their website - www.jindalsteelpower.com 

About Peru's Oil Industry:

Peru had 380 million barrels of proven oil reserves in 2007, producing 113,000 barrels a day of total oil liquids (Oil and Gas Journal). 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, EcoPetrol and 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.