Chariot Oil & Gas wholly owned subsidiary Chariot Oil & Gas Investments (Morocco), has been awarded a 75% interest and operatorship of the Kenitra Offshore Exploration Permit of Morocco in partnership with the Office National des Hydrocarbures et des Mines (ONHYM) which holds a 25% carried interest.
Portfolio management: new exploration permit
Kenitra, with an area of approximately 1,400km2 and in water depths ranging from 200m to 1,500m, was formerly part of the Rabat Deep Offshore Exploration Permits I-VI ("Rabat Deep"), in which the Company now has a 10% interest and a capped carry on the RD-1 well which is anticipated to be drilled in early 2018.
This acreage was recently relinquished, as required under the Moroccan Hydrocarbon Code, on the entry into the current licence period of Rabat Deep. Kenitra is also adjacent to the Company's 75% interest in the Mohammedia Offshore Exploration Permits I-III ("Mohammedia").
De-risking: seismic programme
Through 3D seismic data acquired in 2014 on Mohammedia, Chariot identified the LKP group of prospects in the shallow-water clastics in the Lower Cretaceous play which have gross mean prospective resources ranging from 182mmbbls to 350mmbbls in four prospects as described in the most recent audit by Netherland Sewell and Associates Inc.
Separately, Chariot has also identified the deep-water turbidite equivalent of these shallow-water clastics in a new large lead, Kenitra-A, which is partially covered by 3D seismic data and has a gross mean prospective resource of 464mmbbls as estimated by the Company. These prospects and leads all have Class III AVO seismic attributes that are supportive of the presence of hydrocarbons and the RD-1 well has the potential to further de-risk these targets.
In order to fully describe the Kenitra-A lead and to define prospectivity throughout this play, Chariot is pleased to announce that, in conjunction with its partner, ONHYM, it has commenced its seismic acquisition campaign covering both Mohammedia and Kenitra. This acquisition, conducted by Polarcus, will enable the Company to develop the portfolio of drillable prospects and potentially identify additional material prospectivity. This seismic campaign will fulfil the work commitment for the current licence phase on both licences.
Larry Bottomley, CEO commented:
"In line with our strategy we continue to manage our portfolio proactively. This award allows us to capture the extension of the Lower Cretaceous play which spreads from Mohammedia into the Kenitra acreage. With our focus on de-risking our assets, Chariot will develop the drilling inventory on these permits through seismic acquisition which capitalises on the current excellent seismic contract rates.
The RD-1 well scheduled to be drilled in early 2018 on Rabat Deep has the potential to further de-risk the hydrocarbon charge system in the Cretaceous play in Kenitra and Mohammedia which has prospectivity in excess of a billion barrels in which the Company holds 75% equity.
"We would like to thank the Ministry for their support in awarding this licence and we look forward to continuing our successful partnership with ONHYM and progressing exploration over this area."
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Qualified Person Review
This release has been reviewed by Duncan Wallace, Exploration Manager of Chariot, who is a petroleum geologist with over 15 years' experience in petroleum exploration, MSc in Petroleum Geology from Imperial College and a member of the Petroleum Exploration Society of Great Britain. Mr Wallace has consented to the inclusion of the technical information in this release in the form and context in which it appears.