Continental Focus, International Reach

Chariot Picks Up New Acreage in Morocco

Thursday, April 4, 2019

Chariot Oil & Gas picked up new acreage in Morocco with the award of a 75% interest and operatorship of the Lixus Offshore License. Morocco’s ONHYM holds a 25% carried interest in the license.

The Lixus License covers an area of approximately 2,390 sq km, 30 km north of Chariot’s existing Moroccan acreage, with water depths ranging from the coastline to 850 meters. The area has been subject to earlier exploration with legacy 3D seismic data covering about 1,425 sq km and four exploration wells, including the Anchois gas discovery.

The Anchois-1 well was drilled in 2009 in 388 meters water depth some 40 km from the coast. The well encountered an estimated net gas pay of 55 meters in two sands with average porosities ranging from 25% to 28%. A new independent audit of this discovery by Netherland Sewell and Associates Inc. (NSAI) estimates a 2C contingent resource of 307 Bcf. A deeper target not penetrated by the well has 2C prospective resources estimated by NSAI of 116 Bcf, with the Anchois discovery containing a remaining recoverable resource of 423 Bcf.

The Anchois discovery is in Tertiary-aged turbidite reservoirs that occur above a nappe emplaced during the Alpine orogeny and the pay sands have a characteristic and anomalous seismic signature. The Company has identified five satellite prospects to Anchois that have tie-back potential, three of which have been audited by NSAI, and Chariot estimate that Anchois and the satellites holding remaining recoverable resources in excess of 900 Bcf.

An additional five prospects have been identified in Lixus in similar geological settings as Anchois but currently without the appropriately conditioned 3D seismic data to confirm comparable anomalous seismic signature, and these prospects have gross mean prospective resources ranging from 66 Bcf to 330 Bcf, as estimated by the Company. Seismic reprocessing will be undertaken to reduce the risk for these additional prospects. NSAI will be preparing a Competent Persons Report on these prospects and on Anchois N and Anchois NW. Chariot is also evaluating leads identified in the section below the Nappe which has the potential for giant scale prospective resources.

The excellent quality reservoirs in the Anchois discovery offers the potential for high rate wells and the consequent possibility of a low-cost development. In combination with excellent commercial contract terms in a country with high gas prices in a developing market and growing energy demand, the Anchois discovery offers the potential for a material, high-value project. The low risk prospect inventory offers running room with additional, low-cost tie-back opportunities.

The initial license commitment, for which the Chariot is fully funded, includes a technical program of 3D seismic reprocessing and evaluation to access the additional exploration potential of Lixus. Chariot will also further evaluate the gas market, test development concepts through a feasibility study and seek strategic partnerships and alliances to progress towards a development of the Anchois discovery.