Junior explorer Chariot Oil & Gas announced Thursday that it has chosen not to apply for a new exploration license in Northern Blocks 1811A&B offshore Namibia, with its current license due to lapse on October 26.
Chariot said it has analysed "significant amounts" of proprietary seismic and well data, as well as integrated information from third party drilling activity to study the possibility for long range hydrocarbon migration to the Zamba prospect. The firm said that this work had not significantly de-risked the prospect and, given that a new license would entail significant additional investment both in capital and time, it considers it too high risk to justify further near-term exploration expenditure.
Chariot CEO Larry Bottomley commented in a company statement:
"The goal of the company is to deliver transformational growth through the discovery of material accumulations of hydrocarbons. Exploration is a risk business, and managing this risk will be key to our success. It is for this reason that Chariot views its fast follower positioning as crucial to its strategy, as this allows the company to make informed decisions from an optimised knowledge base.
"Furthermore, with the diversity we now have in our portfolio, Chariot can manage its assets in terms of risk and their associated fit within the aspiration of zero cost exploration. The company will continue with this strict capital discipline and build on its asset base in order to maintain this optionality and generate opportunities for a sustainable drilling campaign.
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