Chariot Adds Acreage Offshore Morocco

Chariot Oil & Gas Limited announced that its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Ltd., has entered into a petroleum agreement with the Government of the Kingdom of Morocco for a 75 percent interest and operatorship in offshore license Rabat Deep. Rabat Deepis located adjacent to the Company's recently acquired Loukos and Casablanca / Safi licenses and covers an area of 4,163 square miles (10,782 square kilometers), giving Chariot an aggregate acreage position of 6,258 square miles (16,207 square kilometers) offshore Morocco.

This Agreement remains subject to approval from the authorities and once complete, Chariot will be partnered with the Office National des Hydrocarbures et des Mines (ONHYM), the national oil company of Morocco, which will participate with a 25 percent carried interest.

The Agreement consists of an initial three year period, during which Chariot will reprocess existing 2D seismic datasets and then carry out a 621-mile (1,000-kilometer) 2D seismic survey. Once the results of the initial work program have been received, Chariot may elect to move forward into subsequent phases of the Agreement which would involve the acquisition of 3D seismic data and, following this, undertaking of exploration drilling activities.

The Rabat Deep license area is located 31 miles (50 kilometers) offshore in water depths ranging from 492 feet to 11,483 feet (150 meters to 3,500 meters). Only one well has been drilled in the block and no 3D seismic has been acquired to date, despite the appearance of an extensive mobile salt basin that has been identified in the block, which lies adjacent to a carbonate platform with large potential reef geometries at the platform edge. Plays have been identified both in this carbonate platform as well as in Cretaceous sandstones overlying the salt. Charge is thought to be most likely from Jurassic source rocks but Paleozoic and Cretaceous source rock levels may also be present. The work program is designed to confirm these key play elements in the first phase of work, progressing to prospect definition and drilling in subsequent phases.

Paul Welch, CEO of Chariot, commented:

"Morocco is a very desirable location for oil and gas exploration and we are very pleased to have acquired this additional acreage which is positioned to complement and balance our existing assets in this region. We now have a significant holding in this highly prospective province and we look forward to developing its potential. With these assets, alongside our licenses in Namibia and Mauritania, we have expanded and secured a very promising portfolio of opportunities offshore West Africa."