Chariot remains vigilant despite some market improvement
Source - SMW
Chariot Oil & Gas said it continued to make significant progress throughout the year and while it had seen some improvement in market conditions, it remained vigilant and conservative in its forecasting.
Chariot said that over the past 12 months it had continued to invest in its portfolio to capitalise on the current low cost environment.
The company said it has evaluated 3D seismic data acquired in 2016 in Brazil and Namibia, secured a new licence in Morocco and back-in rights in legacy acreage in Namibia, acquired extensive 2D and 3D seismic programmes and completed the transfer of operatorship in the Rabat Deep Permits in Morocco in the lead up to exploration drilling in Q1 2018.
It said that through this extensive work programme, the Chariot in-house subsurface team had developed an inventory of drill-ready prospects with material follow-on potential, and initiated partnering processes in Namibia and Morocco.
Chief executive Larry Bottomley said: 'We have continued to make significant progress throughout the year, refreshing and de-risking the portfolio by securing a new licence, delivering an innovative option based on Chariot's reputation for partnering and continuing to mature all parts of the portfolio through the acquisition of new data and the evaluation of data acquired in 2016.
'We have also continued to apply rigorous portfolio management and capital discipline, leaving us in a very strong financial position going forward.
'Over the last two years, Chariot has been able to capitalise on the low cost base for seismic acquisition and processing, and has consequently been able to mature its portfolio and build a drilling inventory of potentially transformational prospects.
'This readjustment of costs following the oil price fall of 2014 has now affected the drilling market, and the Company is looking to capitalise on drilling costs as successfully as we delivered in our seismic campaigns.
'Looking ahead, we are focused on delivering three exploration wells in the near-term and have established an in-house drilling team to deliver this programme safely, efficiently and cost-effectively.
'Whilst we have seen some improvement in market conditions, we remain vigilant and conservative in our forecasting to ensure we remain well-positioned to deliver on our plans.'
At 9:38am: (LON:CHAR) Chariot Oil Gas Ltd share price was +0.25p at 14.25p