Junior explorer Chariot Oil & Gas announced Wednesday that the farm-out it agreed to in July with Australian independent energy firm Woodside for its Rabat Deep Offshore permits has been approved by the Moroccan authorities.
The deal, for Rabat Deep Offshore permits I to IV, will see Woodside pay 100 percent of the 3D seismic data acquisition and processing costs incurred across the license by Chariot, apart from the smaller company's back costs. Woodside will also carry Chariot on future work up to an agreed cap, including a multi-beam side-scan sonar and seabed coring survey.
Chariot said that a substantial part of these funds has now been received, with the results that it expects its cash balance at the end of the year to be approximately $52 million. The remaining balance of these funds is anticipated to be received during the first quarter of 2015, when the multi-beam side-scan sonar and seabed coring survey is expected to take place.
Chariot will remain the operator of the permits, with a 50-percent stake. Woodside and the Moroccan government each hold 25 percent.
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