Atlantic margin focused Chariot Oil & Gas is dropping out of two blocks offshore Namibia.
The firms says it has elected not to enter into the First Renewal Exploration Period of the exploration licenses covering Blocks 2714A and 2714B. But, it has secured an option to back-in for 10% equity, after the completion of future exploration drilling, for no financial consideration.
Chariot CEO Larry Bottomley said Chariot's operational focus is on preparing for the drilling program in Morocco, progressing preparations to drill in the Central Blocks in Namibia and launching a partnering process in Brazil.
Chariot has 85% and is operator of the Namibian "Southern Block" with partner NAMCOR holding 10%; and Quiver 5%.
Chariot had acquired about 2128km of 2D seismic data, prefunded the ION NamibiaSPAN long offset 2D seismic data and reprocessed the historic 3D seismic data over the Southern Blocks. Analysis of the integration of this seismic data with regional well data identified gas prospects AO1 and AO2 in the Aptian clastic onlap play.
"The work undertaken by Chariot to define this prospectivity resulted in industry interest; however the technical risk associated with these prospects deterred potential partners from committing to a program of exploration drilling in the current environment," says the firm.
Chariot CEO Larry Bottomley said: "While it is clearly disappointing that we were unable to attract a partner on the Southern Blocks in the current environment, it is important that the company maintain discipline in the management of risk and the allocation of capital. NAMCOR has requested that Chariot remain engaged in the partnering process through a zero cost option to back-in after exploration drilling in recognition of the depth of understanding of the Chariot team of these licenses and the quality of technical work performed."