Seismic Work Underway at Chariot's Central Blocks

Chariot O&G announced that the 3D seismic acquisition program in its Central Blocks has commenced in conjunction with Petroleum Geo-Services ("PGS"). The program will cover 3,500km² using the latest Geostreamer technology and is expected to take approximately 90 days.

The Central Blocks - License 19, blocks 2312 A & B and Northern halves of 2412 A & B - are located within the Luderitz and Walvis Basins and cover an area of 16,801km². Following reprocessing and reinterpretation of the existing 2D seismic data, Chariot and PGS have agreed to focus the 3D seismic acquisition program in the northeastern area of the blocks. The attraction of this part of the acreage is the recognition of multiple target levels and numerous leads including analogues to the "Nimrod" feature in Chariot's Southern acreage with potentially two active oil prone source intervals. Overall these elements increase the likelihood of maturing multiple drilling targets within the 3D acquisition area. To capture as many of the high-graded leads as possible the survey has been extended to cover 3,500km² from the originally planned 2,500km². An additional benefit is that the new 3D seismic area covers water depths ranging from 750-1,750m (significantly shallower than the depths in the originally proposed acquisition area) which will potentially result in a considerable reduction in expected well costs.

In keeping with Chariot's aggressive exploration program, this 3D seismic survey will significantly exceed the minimum work and expenditure requirements of the terms of the First Renewal Phase as announced on June 28, 2011. It will also enable Chariot to further expand its prospect and lead inventory and mitigate risk as it looks to mature further targets for drilling.

Paul Welch, Chief Executive of Chariot, said, "As described in our recent technical update on October 31, 2011, this 3D acquisition program is crucial to the understanding and development of our Central Blocks. We have identified new areas of interest that we believe will contain a significant number of drillable prospects and we look forward to receiving the data and interpreting this further."