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Chariot Oil & Gas has provided an update ahead of its full year results for the year ended February 28, 2010.
Over the past six months work has continued across all the offshore Namibian blocks of interest, the focus being on the processing and interpretation of the comprehensive seismic data that was acquired last year. Chariot holds a large acreage position, totalling an area of 38,725km², and has undertaken extensive seismic acquisition programmes over all of its licenses. Initial results in the form of quick look cubes are now available, with further detailed processing and interpretation work continuing.
A number of key indicators have already been identified from the seismic surveys in the Northern Blocks. In particular, the time and depth analysis of the initial 900 km² supports evidence of significant structures, oil prone source rock, bright spots and volcanic highs -- all of which indicate a working petroleum system which underscores the prospectivity of this area. Additionally, the processing of the latest 600km² of seismic data is underway.
In the Central Blocks, the Company is continuing to work on the potential resource volumes, the results of which will be announced later this quarter. In the Southern Blocks, work also progresses in partnership with Petrobras on block 2714A and the latest seismic program is being processed.
Management continues to seek out suitable assets which will enhance the existing portfolio, building on and balancing the high impact exploration that the Namibian blocks offer. The objective is to secure value add opportunities which provide nearer term production or producing potential in order to bring the Group's first oil date forward and generate cash flow in the shorter term. A range of potential new opportunities have been or are currently being reviewed.
The Chariot team has also grown significantly over the past few months with the appointments of Matthew Taylor, Julia Kemper, Alex Green and Martin Richards who bring an average of over 25 years of industry experience to the Company. Along with the staff based in Namibia, Chariot has an enviable in-house technical team with a range of expertise and proven past success in analysing seismic, making discoveries, identifying new opportunities, negotiating farm-outs and completing acquisitions.
Chariot has recently opened a dataroom in London and has received numerous expressions of interest from significant third parties, to visit and review the latest information. Chariot looks forward to welcoming these initial companies and others into the dataroom over the next several months.
Chariot was also pleased to conclude the settlement of the dispute with HRT in early February. The settlement released the $2.5m provision which Chariot included in its interims as at August 31, 2009.
Paul Welch commented, "The past six months have been important for Chariot with a great deal of work being done in-house on our Namibian blocks as well as carrying out substantial due diligence on a variety of new opportunities. With a strengthened technical team in place, a healthy financial position and an exciting exploration portfolio, Chariot is well placed to be optimistic about the future. We look forward to reporting on the resource potential of the Central blocks and our preliminary results in due course."