Moroccon authorities have approved a farm-in deal between London based exploration minnow Chariot Oil & Gas and Australia's Woodside on the Rabat Deep Offshore permits I-VI.
Woodside is committed to pay 100% of the 3D seismic acquisition and processing costs incurred across the license by Chariot, as well as other back costs and in addition agreed to carry Chariot on future work up to an agreed cap, including a multibeam side-scan sonar and seabed coring survey.
Chariot remains Operator of the license with a 50% equity interest, with the Office National des Hydrocarbures et des Mines (ONHYM) retaining a 25% carried interest and Woodside holding 25%. As part of the agreement, Woodside has an option to acquire a further 25% of Chariot's equity and become Operator of the license in return for a full well carry up to an agreed cap consistent with other farm-outs concluded in the area.
A substantial part of cash Chariot is due from Woodside has been paid, giving Chariot a US$52 million cash balance at 31 December 2014.
The remaining balance of these funds is anticipated to be received during Q1 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.
