REG - Chariot Limited - Material Increase in Gas Resource Offshore Morocco
20/07/2022 07:00
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RNS Number : 0362T Chariot Limited 20 July 2022
20 July 2022
Chariot Limited
("Chariot" or the "Company")
Material Increase in Gas Resources Offshore Morocco
Increase to 1.4 Tcf in total remaining recoverable resources (2C plus 2U) at
the Anchois Project
Range of targets de-risked in a basin-scale exploration portfolio with multi
TCF potential
Chariot Limited (AIM: CHAR), the African focused transitional energy company,
is pleased to announce the results of Independent Assessments on its gas
resources offshore Morocco, incorporating the results of the recent
successfully drilled Anchois-2 appraisal and exploration well. The Independent
Assessments have been made by Netherland Sewell & Associates Inc. ('NSAI')
on the Anchois Gas Field and further selected exploration prospects in the
Lixus Offshore licence ('Lixus') and the adjacent Rissana Offshore licence
('Rissana') with material resource upgrades reported across the portfolio.
These resource upgrades underpin:
· the Company's decision to fast-track its field development plans;
· the associated exploration programmes to deliver further growth from
the portfolio; and
· Chariot's focus on developing a significant energy resource,
prioritising the growing demand within Morocco's domestic market, and
potentially supplying surplus gas to Europe.
Anchois Gas Field:
• 82% increase in 1C contingent resources from 201 Bcf to 365 Bcf
• 76% increase in 2C contingent resources from 361 Bcf to 637 Bcf
• 49% increase in 2U prospective resources to 754 Bcf in three undrilled
targets with an improvement in the probability of geological success, now
ranging from 49 to 61 %
• Total remaining recoverable resource at Anchois (2C plus 2U) now
stands at 1.4 Tcf
Additional Lixus Prospects:
• Updated assessments on two key undrilled prospects (Maquereau, and
Anchois West) with improvements in both prospective resource potential and
probability of geological success and the newly identified Anguille prospect,
which are all part of the same tertiary gas play as the Anchois gas field
• Combined, 2U prospective resources of 838 Bcf with an estimated
probability of geological success ranging from 30-52%, with closely related
additional targets in the areas surrounding the prospects
• The total remaining recoverable resources (2C plus 2U, comprising
audited and internal Chariot estimates) in the entire Lixus portfolio stands
at approximately 4.6 Tcf
Rissana Offshore:
• Early assessment of the areas covered by 3D seismic, provides a
total 2U prospective resource of over 7 Tcf, combining a high-graded prospect
'Emissole' within the lower risk Anchois tertiary gas play and multi Tcf
prospects in a higher-risk Mesozoic play, inherited from Chariot's legacy
Mohammedia Offshore licence area.
Duncan Wallace, Technical Director of Chariot Limited, commented:
"This independent assessment report confirms that following the drilling of
Anchois-2, we have a growing resource base from which we can fast track our
gas development towards material cashflows and provide gas to meet Morocco's
growing energy demand.
These resource upgrades across our Moroccan portfolio are a significant step
forward. As well as confirming the increased scale of our discovery at
Anchois, this independent assessment has also corroborated the multi Tcf
opportunity that sits within the basin in our Moroccan licences and served to
de-risk a number of high potential future targets in Lixus.
We remain fully focused on bringing Anchois into production as quickly as
possible and are working hard across all aspects of the development plan
required to reach FID. We are committed to realising the value of this gas
field as well as continuing to prove up the significant scope of our wider
resource base from the Moroccan portfolio."
Investor Presentation at the Annual General Meeting
Management will provide a detailed overview of this resource upgrade at the
AGM, which will be held on 8 September 2022.
Further information:
Chariot, through its wholly owned subsidiary, Chariot Oil & Gas Holdings
(Morocco) Limited, has a 75% interest and operatorship of Lixus, in
partnership with the Office National des Hydrocarbures et des Mines ("ONHYM")
which holds a 25% interest.
The Lixus licence covers an area of approximately 1,794km(2), with water
depths ranging from the coastline to 850m. The area has been subject to
earlier exploration with legacy 3D seismic data covering approximately
1,425km(2) on-block and four exploration wells, including the Anchois-1 gas
discovery which was drilled in 2009. In Q1 2022, Chariot announced that it had
successfully drilled an appraisal and exploration well, Anchois-2 which
encountered approximately 150m of net gas pay and confirmed excellent quality
gas.
To fast track the development of the Anchois gas field Chariot recently
awarded the Front-End Engineering and Design Contract to a consortium of world
leading developers of offshore gas projects with Societe Generale appointed to
lead the debt financing.
In Q1 2022 Chariot also announced the signing of the Rissana Offshore Licence,
which surrounds the Lixus acreage, capturing further prospectivity around the
significant Anchois gas discovery and higher risk higher-reward Mesozoic
prospects originally identified on its legacy Mohammedia Offshore Licence
Area.
Updated independent assessment for Lixus Offshore licence based on Anchois-2
drilling results
Field / Prospect Contingent Gas Resources* (Bcf) Probability of Geological Success (Pg)
Pro
spe
cti
ve
Gas
Res
our
ces
(Bc
f)
1C* / 1U 2C* / 2U 3C* / 3U
Anchois Field
Anchois Field Contingent* 365 637 907 N/A
(201) (361) (550) N/A
Anchois Field Prospective 377 754 1123 49-61%**
(384)(+) (690)(+) (1013)(+) (37-64%)**
Anchois Field - Total Remaining Recoverable Resource 742 1391 2030
(585) (1051) (1563)
Other Lixus Prospects
Anchois West 68 241 499 52%
(45) (89) (134) (35%)
Maquereau (Central) 108 428 886 30%
(73) (267) (559) (25%)
Anguille 71 169 290 34%
Not
prev
ious
ly
eval
uate
d
Independent assessment for Rissana Offshore licence
Prospect Probability of Geological Success (Pg)
Pro
spe
cti
ve
Gas
res
our
ces
(Bc
f)
1U 2U 3U
Emissole 75 171 332 22%
Arnoux(++) 356 1023 1944 22%
Beluga/Beluga Deep(++) 996 2250 4370 20%
Cachalot/Cachalot North(++) 1084 2405 4377 18-20%**
Dauphin(++) 586 1463 2906 18%
Total Rissana Prospective 3097 7312 13929
( ) Previous independent assessment of resources and probability of geologic
success
* Contingent Gas Resource estimates
** Geologic risk assessment values composed of multiple targets with differing
risks
(+) Pre-Anchois-2 assessments of prospective resources also included the C
sands and M sands reservoirs in the Anchois Deep prospect which were
successfully drilled in Anchois-2. The previous assessment estimated the total
2U prospective resource for the three targets yet to be drilled to be 505 Bcf
with a Pg of 37-46%, compared with the updated assessment of 754 Bcf and Pg of
49-61%.
(++) Prospects originally identified during Chariot's work on the Mohammedia
Offshore licence area, which are now part of the Rissana licence area and
considered as gas prospective.
Resources have been reported as Wet Gas resources, with no separate accounting
for contained liquids. It should be recognized that this is a resources
assessment definition and not a phase behaviour definition (Anchois gas is
regarded as a dry gas in terms of composition).
The estimates in this report have been prepared in accordance with the
definitions and guidelines set forth in the 2018 Petroleum Resources
Management System (PRMS) approved by the Society of Petroleum Engineers.
Glossary
Contingent Resources Those quantities of petroleum that are estimated, as of a given date, to be
potentially recoverable from known accumulations by application of development
projects, but which are not currently considered to be commercially
recoverable owing to one or more contingencies
Prospective Resources Those quantities of petroleum that are estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations
Total Remaining Recoverable Resources The total resource estimates including both contingent and prospective
resources (as above); resource estimates aggregated with understanding that
contingent vs prospective resources hold different technical and commercial
risks
1C Low estimate scenario of contingent resources
1U Low estimate scenario of prospective resources
2C Best estimate scenario of contingent resources
2U Best estimate scenario of prospective resources
3C High estimate scenario of contingent resources
3U High estimate scenario of prospective resources
Qualified Person Review
This release has been reviewed by Duncan Wallace, Technical Director of
Chariot, who is a petroleum geologist with over 20 years' experience in
petroleum exploration, MSc in Petroleum Geology from Imperial College, a
Fellow of the Geological Society and a member of the Petroleum Exploration
Society of Great Britain. Mr Wallace has consented to the inclusion of the
technical information in this release in the form and context in which it
appears.
This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014, as retained in the UK pursuant to S3 of the European
Union (Withdrawal) Act 2018.
Enquiries
Chariot Limited +44 (0)20 7318 0450
Adonis Pouroulis, Acting CEO
Julian Maurice-Williams, CFO
Cenkos Securities Plc (Nomad and Joint Broker) +44 (0)20 7397 8900
Derrick Lee, Adam Rae (Corporate Finance)
Peel Hunt LLP (Joint Broker) +44 (0) 20 7894 7000
Richard Crichton, David McKeown
Celicourt Communications (Financial PR) +44 (0)20 8434 2754
Mark Antelme, Jimmy Lea
NOTES FOR EDITORS:
About Chariot
Chariot is an African focussed transitional energy group with two business
streams, Transitional Gas and Transitional Power.
Chariot Transitional Gas is focussed on a high value, low risk gas development
project offshore Morocco with strong ESG credentials in a fast-growing
emerging economy with a clear route to early monetisation, delivery of free
cashflow and material exploration upside. Chariot Transitional Power, looking
to transform the energy market for mining operations in Africa, providing a
giant largely untapped market with cleaner, sustainable, and more reliable
power. Chariot is also partnering with the Government of Mauritania on the
potential development of a 10GW green hydrogen project, Project Nour.
The ordinary shares of Chariot Limited are admitted to trading on the AIM
under the symbol 'CHAR'.
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