Chariot Boosts Namibian Prospective Resources to over 5B Barrels

Chariot Oil & Gas Ltd.

Chariot Oil & Gas has announced an increase in its mean prospective oil resources of over 1.3 billion barrels (up 34.2%) to 5.24 billion barrels from its offshore Namibian licenses.

The upgrade follows analysis of reprocessed PSDM 2D seismic results by HRT Petroleum Ltda ("HRT"), as part of an ongoing effort to mature the prospect and lead inventory. Highlights of the findings include:

  • An increase in the total mean prospective resource offshore Namibia of 1.3 billion barrels to 5.24 billion barrels (up from the 3.9 billion barrels previously reported) comprised of:
  • 889 million barrels ("mmbbls") in the northern blocks 1811A and 1811B,
  • 264 mmbbls in the southern blocks 2714A and 2714B;
  • An increase of 1,058 mmbbls in best estimate P50 prospective resources to 4,780 mmbbls; and
  • 17 new structural leads determined.

Kevin Broger, CEO commented, "We are delighted to announce such a significant increase in our mean prospective resources within six months of listing on AIM. This outstanding improvement is a direct reflection of the fine geoscience work being conducted on the portfolio of blocks by HRT. The reprocessing of the existing 2D seismic data has indicated evidence of many new structural leads in both our northern and southern blocks, adding further weight to the prospectivity of the Namibian offshore basins and our portfolio."

As stated in the update on September 1, 2008, pre-stack depth migration ("PSDM") reprocessing and mapping on the 2D seismic database in the Northern blocks (1811A and 1811B) has identified a series of new structural leads in the Campanian-aged horizons, some of which have possible direct hydrocarbon indicators. The occurrence of these has led to the expansion of the planned 3D seismic acquisition program.

Reinterpretation of the seismic data has confirmed the presence of four main structural leads in the Tapir Complex (all with a stratigraphic component); Tapir North, Tapir, Tapir South and Tapir Deep -- increasing the mean prospective resource from an initial figure disclosed in the AIM admission document of 675 mmbbls, to 1,547mmbbls -- a net increase of 872 mmbbls.

In the southern blocks, PSDM reprocessing and mapping has led to the identification of a series of new structural leads in the Campanian, Santonian and Albian-aged horizons. Reinterpretation of the Mastodon and Mammoth leads detailed in the AIM admission document has confirmed the presence of thirteen new structural leads (all with a stratigraphic component) increasing the mean prospective resource from an initial figure of 1,294 mmbbls, to 1,558 mmbbls -- a net increase of 264 mmbbls.

3D compositional basin modelling performed by HRT has also corroborated evidence of the presence of an active petroleum system in the recently drilled Namibe basin. This provided further indications of an overcharged oil system in the blocks 1811A & B, as reported in the Competent Person's Report of the AIM Admission Document. The modelling in the southern blocks also showed important hydrocarbon charging and potential oil and gas accumulations in the structural traps mapped.

As previously reported, a newly expanded 1,500km2 program of 3D seismic acquisition is to commence in the northern blocks this month. Concurrent to this, a 3000km2 3D program will be acquired in the southern blocks serving to further define these new leads.

The recalculated volumetrics which have led to the resource increase were based on probabilistic Monte Carlo simulations for these new structures.

Where individual leads defined on 2D seismic are vertically stackable and potentially drillable with a single well, we have combined these into prospect areas. For example, in the southern blocks two prospects are now evident. The revised Combo prospect has stackable Campanian (1, 2, 3), Santonian(1) and Albian(1) structural leads and the stratigraphic Woolly Rhino for a chance at 927mmbbls mean prospective resource. An additional prospect combines Campanian (4), Santonian (2) and Albian (2) structural leads at 596 mmbbls.

In the northern blocks, three prospects are now evident. Tapir North has stackable leads in the Campanian at 606 mmbbls of mean prospective resource. Tapir also has stackable leads in the Campanian for 358 mmbbls. Additionally, prospect Zamba is a well defined Albian structural feature with mean prospective resources of 985 mmbbls, an increase of 17 mmbbls from the initial figure disclosed in the AIM admission document.