REG - Chariot Oil & Gas Ld - Increase in Prospective Resources
Released: 02/03/2010
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RNS Number : 8994H
Chariot Oil & Gas Ld
02 March 2010
For immediate release
2 March 2010
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Mean Prospective Resources Reported from Central Blocks
Total Group resources increased by 3.3 billion barrels to over 8.5 billion barrels
Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas exploration company is pleased to announce an
increase in the Company's unrisked mean prospective oil resources of 3.3 billion barrels to a total of over 8.5 billion
barrels. This results from volumes being attributed to the Central Blocks (licences 2312 A & B and the northern halves of
2412 A & B) offshore Namibia and increases the Group's resources by 39% from the previously reported 5.24 billion barrels
identified in the Northern and Southern licences.
This resource increase follows the interpretation and processing of the 3,000 line km seismic survey which was acquired
across the Central Blocks in the second half of 2009 by Seabird Exploration. No resource potential had previously been
attributed to these blocks.
Aggregate mean unrisked prospective resources of 3.3 billion barrels have been identified within three new leads, all of
which are combination traps with a component of structural (dip) closure and a stratigraphic upside.
Interpretation of the 2D seismic data identified a number of leads with three - Klipspringer, Hartebeest and Oryx - being
high graded for inclusion as prospective unrisked resources. These all lie in the southern area of Block 2412 A & B in
water depths of 2,000 - 2,500m. The leads are interpreted to lie within a mapped deepwater Cretaceous channel - fan system
with seismic character indicative of deep marine sandstone facies. The high graded leads are identified as combination
traps with a component of structural dip closure (apparent following depth conversion) with upside stratigraphic trapping
potential. Preliminary modelling suggests that the leads are oil prone.
The Central Blocks straddle the Luderitz and Walvis Basins, with all leads lying within the Luderitz in the southern area
of the licences. It is important to note that these leads sit within in a separate region to the Namibe and Orange Basins
where Chariot's Northern and Southern Blocks are situated respectively. This is of particular note as Chariot has resource
potential in three geologically distinctive basins and is therefore well positioned across the Namibian South Atlantic
margin.
The table below sets out the prospective resource estimates for the three leads. The volumetrics which have led to the
resource increase were based on probabilistic Monte Carlo simulations for these new structures. The Central Blocks are 100%
owned and operated by Enigma Oil & Gas Exploration (Pty) Limited, a wholly owned subsidiary of Chariot.
Namibia Central Blocks Lead Portfolio - Feb 2010
Lead
Prospective Resources (million barrels) Klipspringer Hartebeest Oryx Totals*
Mean 1,857 1,264 310 3,299
P90 Low Estimate 673 371 99 1,724
P50 Best Estimate 1,614 1,045 258 3,100
P10 High Estimate 3,383 2,459 592 5,145
1,614
1,045
258
3,100
P10 High Estimate
3,383
2,459
592
5,145
* Total resource numbers are probabilistically summed and therefore the figures do not add arithmetically
The current seismic grid has a 7km line spacing and further seismic studies will be required to improve trap definition and
identify any potential direct hydrocarbon indicators (DHIs). Present risk estimates for the leads are of the order of 5%
chance of success, reflecting the uncertainty due limited seismic coverage. With additional seismic it is expected that
the chance of success will increase to better than 10% and potentially 20% with DHIs.
Paul Welch, CEO commented, "We are delighted to report these volumes, boosting our unrisked gross mean prospective
resources to over 8.5 billion barrels and underscoring the potential which we believe is present offshore Namibia. We were
very encouraged by the structures that were originally mapped across these licences and our additional seismic acquisition
in the Central Blocks has enabled us to cherry pick these leads of particular interest."
For further information please contact:
Chariot Oil & Gas Limited +44 (0)20 7318 0450
Paul Welch, CEO
Ambrian Partners Limited (NOMAD and Joint Broker) Richard Swindells BMO Capital Markets Limited (Joint Broker) +44 (0)20 7634 4856 +44 (0)20 7664 8120
Bill Smith, Adam Janikowski
Buchanan Communications +44 (0)20 7466 5000
Bobby Morse, Ben Romney, Chris McMahon
Buchanan Communications
+44 (0)20 7466 5000
Bobby Morse, Ben Romney, Chris McMahon
NOTES TO EDITORS
QUALIFIED PERSON
Martin Richards, Chariot's Chief Reservoir Engineer, is the qualified person for the purpose of this release. Martin has
worked in the oil and gas industry for over 30 years and has an in-depth experience of all aspects of subsurface
management, reservoir engineering and petroleum economics. He has an MA in Physics from Oxford University, an MSc in
Geophysics and Planetary Physics from Newcastle University and an MEng in Petroleum Engineering from Heriot-Watt
University. He has compiled, read and approved the technical disclosures in this announcement.
Resources estimates are reported in accordance with the 2007 Petroleum Resources Management System approved by the Society
of Petroleum Engineers.
About Chariot
Chariot Oil & Gas Limited (www.chariotoilandgas.com) is an independent oil and gas exploration group. The Group currently
holds licences covering eight blocks in Namibia, all of which are offshore. All of these blocks are currently in the
exploration phase.
Shares in Chariot Oil & Gas limited are admitted to trading on the AIM Market of the London Stock Exchange under the symbol
'CHAR'.
This information is provided by RNS
The company news service from the London Stock Exchange