Chariot Oil & Gas Issues pre-close operational update
AIM-listed Chariot Oil & Gas, the Atlantic margins focused oil and gas exploration company, has provided a pre-close operational update.
During the course of 2014, Chariot has carried out substantial amounts of technical work across the entirety of its portfolio, diversified risk through two successful farm outs, repositioned all of its Namibian licences by removing well commitments and injected further capital into the Company. These successes have delivered an extensive, operated, high-equity, giant-potential portfolio in licences with low commitments and significant amounts of time to achieve zero cost exploration through partnering. At year-end, the unaudited cash position of the Company is estimated to be approx. US$42 million, with additional recoveries of up to US$13.5 million expected from our new partners following the final approvals of the relevant state authorities.
The recent decline in the oil price has materially affected the scale of investment across all sectors of the exploration and production industry, and this will make for a more challenging business environment. As a result of its achievements of the last year, Chariot stands financially robust and technically capable of taking advantage of opportunities that may arise as a result of external factors that are affecting the oil and gas industry. Chariot is committed to applying capital discipline and managing risk whilst developing and maturing its portfolio. In doing this, the Company continues to work towards its goal of creating transformational stakeholder value through the discovery of material accumulations of hydrocarbons.
Larry Bottomley, Chief Executive of Chariot, said:
“Whilst a lower oil price will result in lower investments, this will be offset to some degree by lower costs and a focus on high margin assets. Chariot has a portfolio of high margin and high potential assets, which it operates and hence controls costs, in countries with favourable commercial terms.
As a fast follower, our acreage is currently held at minimal cost and with low commitment whilst retaining the potential for giant discoveries and future follow-on potential. The Company is also financially robust, in a position to partner on a competitive basis and take advantage of new opportunities that may arise. Even though sector sentiment is low, we see this as a time of exciting opportunity. We look forward to progressing the portfolio towards drilling and using our skills to gain the best possible vantage point for working towards transformational growth.”