UK-based explorer Chariot Oil & Gas has opted not to renew the C-19 license offshore Mauritania, the company said today (16 June), because it was unable to find a partner for a drilling campaign on the license. The company had received an extension on the license last year.
Chariot said that it still considers the acreage to be prospective, however, it decided to not to move forward, saying the decision is "in line with the company's strategy and focus on portfolio management and capital discipline."
“A fundamental part of Chariot’s risk strategy is partnering through the major investment phases in our exploration programs," said Larry Bottomley, CEO, Chariot. "This independent, third-party validation ensures that we invest the company’s capital on the best quality opportunities. While we have been unsuccessful in attracting third-party funding for an exploration well in C-19, we have substantially achieved our aspiration of zero-cost exploration on this license. While it is clearly disappointing, it is important that the company maintain discipline in the management of risk, allocation of capital and in developing those parts of the portfolio likely to yield drilling opportunities."
Chariot had acquired 3500sq km of proprietary 3D seismic data, undertook extensive reprocessing of legacy 2D seismic data and completed seabed coring to enable an integrated analysis and evaluation of the hydrocarbon potential and prospectivity of the C-19 block.
Elsewhere in Africa, Chariot picked up 75% interest and operatorship in the Mohammedia Offshore Exploration Permits I - III, off Morocco, the company announced today. The license is in partnership with the Office National des Hydrocarbures et des Mines (ONHYM), which holds a 25% carried interest.
The Mohammedia permits sit nearshore and covers approximately 4600sq km in water depths less than 500m. They are adjacent Chariot's Rabat Deep Offshore exploration permits. In March this year, Chariot agreed to a farm-out with Italian major Eni, which picked up 40% and operatorship of Rabat Deep, which is about 30km offshore Morocco in 150-3500m water depth.
Chariot said that the Mohammedia area contains a number of proven and potential play systems. In 2014, Chariot said it acquired approximately 375sq km of 3D seismic data in the precursor Mohammedia Reconnaissance license from which it identified prospects in the Eo-Oligocene (EOP-1 & 2), Lower Cretaceous (LKP-1a,1b,2a,&2b) and the Jurassic (JP-2) with gross mean prospective resources for individual prospects ranging from 50-289 MMbbl as audited by Netherland Sewell and Associates Inc.
The Jurassic carbonate shelf-edge system that makes up the JP-1 prospect in the neighboring Rabat Deep license has been interpreted to lie along the western margin of the Mohammedia permits, the company said. This carbonate shelf-edge appears to act as a structural control on the overlying Early Cretaceous shelf margin with the LKP prospects resulting from the deposition of interpreted shallow-water deltaic clastics. Both the Eo-Oligocene and Lower Cretaceous prospects have seismic attributes that could be indicative of hydrocarbons. Chariot said it has committed to acquire 250sq km of 3D seismic data, which will be acquired where the LKP prospects extend outside the current 3D seismic data.
The bulk of the Mohammedia area currently has little seismic coverage. Chariot said it plans to acquire a minimum of 2000km of 2D seismic over the rest of the license to identify the nature and extent of the play systems. Both seismic programs are likely to be acquired in 2017, the company said.
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