Continental Focus, International Reach

Chariot’s Sees Resource Upgrade in Morocco

Sunday, May 12, 2019

 Chariot Oil & Gas’ remaining recovereable resources have been upgraded to in excess of 1 Tcf, according to its recent Competent Persons Report (CPR) completed by NSAI over its satellite prospects adjacent to the Anchois-1 gas discovery in the Lixus Offshore License, Morocco.

Larry Bottomley, CEO commented, “This independent third-party evaluation confirms that the Anchois discovery and its nearby satellite prospects presents Chariot with an exciting and commercially attractive development opportunity. The combination of a de-risked resource base in a fast-growing energy market, with high gas prices and a need for increased supply is highly attractive to a wide range of strategic partners throughout the energy value chain. We anticipate a period of sustained news flow on this exciting project going forward, which should further unlock the value of the Lixus license, with the results of the feasibility and gas market studies expected to be announced in due course.”

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 approximately 1,425 sq km and four exploration wells, including the Anchois gas discovery.

The company has identified five satellite prospects to Anchois that have tie-back potential, all of which have now been audited by NSAI, giving Anchois and the satellites total remaining recoverable resources in excess of 1 Tcf.

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

An additional five prospects have been identified in Lixus in similar geological settings as Anchois but are currently without the appropriately conditioned 3D seismic data to confirm comparable anomalous seismic signature. The Company estimates these prospects to have gross best estimate prospective resources ranging from 66 Bcf to 330 Bcf. Seismic reprocessing will be undertaken to reduce the risk for these additional prospects after which a CPR is to be conducted on these prospects. Chariot is also evaluating leads identified in the section below the Nappe, which has the potential for giant scale prospective resources.

The initial license commitment, for which the Company 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 and seek strategic partnerships and alliances to progress towards a development of the Anchois discovery.