Chariot Gains Nearby Moroccan Licence
UK-listed explorer Chariot Oil & Gas has been awarded the Lixus licence offshore Morocco, with a gas discovery in the Anchois-1 well, it said April 3. That brings 307bn ft³ of 2C contingent resources in good-quality shale, with deeper potential of 116bn ft³, and more expected in the neighbourhood. Chariot has 75% and the operatorship, the state having the remaining 25%. Lixus is 30 km north of Chariot's existing Moroccan acreage.
Chariot has identified five satellite prospects to Anchois that have tie-back potential, three of which have been audited by Netherland Sewell, and Chariot estimate that Anchois and the satellites hold remaining recoverable resources in excess of 900bn ft³.
CEO Larry Bottomley said:"The award of the Lixus licence provides Chariot with a discovered resource base offering a low-cost development opportunity and significant upside. The commercial attractiveness of the Lixus licence is further enhanced by its position offshore Morocco, a fast growing energy market with high gas prices and a need for increased supply. In addition to the development opportunity, the licence offers very low risk exploration tie-back potential in the same play; and higher risk, transformational lead potential in the sub-nappe.
"Our understanding of the [2009] Anchois discovery developed when it investigated nearby wells as part of a technical review of thermogenic hydrocarbons in the region. This insight into the geology of the surrounding area has enabled us to identify and capture this immediately value accretive asset." He said the commercial viability, "which will be fully laid out in the feasibility study being commissioned immediately, will be highly attractive to a wide range of strategic partners across the energy value chain." However, it can fund its limited commitment wells out of its own pocket.
Analyst Malcolm Graham-Wood said phase 1 with four production wells into the original 307bn ft³ would give 70mn ft³/d over ten years; or 90mn ft³/d with the extra 116bn ft³. Phase 2 would add another 674bn ft³, or 90mn ft³/d for 20 years. This project is highly appealing and potentially very profitable, and changes Chariot’s risk profile, he said.