Namibian OperationsExploration Detail

 
Within the 1,500km2 3D seismic survey that Chariot completed in 2010, the Company has identified a large ridge called the Tapir trend with three culminations forming three prospects, each commercial in its own right.

The ridge is formed by a rotated fault block over which are draped deep marine sediments containing mid-Cretaceious source rocks at the base passing up into multiple turbidite sandstone reservoirs at serveral mapped levels interbedded with deep marine shale reservoirs. On the rotated fault block itself, Apto-Albian carbonates form an additional target. These underlie a horizon that appears to correspond to a level where mobile salt was present.

Chariot is currently drilling the Tapir South prospect (1811/5-1) which has a 25% Chance of Success and a mean un-risked prospective resource potential of 604 million barrels of oil. On this prospect, multiple four way dip closures that contain deep marine channel sandstone geometries which are adjacent to a well defined oil charge kitchen have been identified. The well trajectory is planned for a TVDss of 5100m with multiple reservoir targets. It is expected that minor overpressure will be present, based on offset wells, and that the oil, if discovered, will be at the 'light' phase. In the event of success, the results of this well will significaantly increase the Chance of Success on the other prospects in the area as well as additional leads.

2012 Target: Having drilled Tapir South (1811-5/1) Q2, analyse results and commence potential appraisal work in 2013.

 
At present the Company has identified 14 leads and gross mean un-risked prospective resouce volumes of 8.3 billion barrels of oil in this licence area. These blocks are the least mature in terms of exploration in the Company's profile, with current estimates derived from 2D seismic data. This will be reassessed following the processing and interpretation of a 3,500km2 survey that was carried out at the end of 2011/beginning of 2012 and is likely to provide increased prospective resource volumes and additional drilling targets.

This 3D seismic acquisition was carried out in conjunction with PGS using 3D Geostreamer technology. It covered the north eastern areas of the blocks following the reinterpretation and reprocessing of 3,000km of 2D seismic data which identified 11 new leads within this area that occur in several diffrent target intervals within both structural and stratigraphic traps. These include analogues to the Nimrod feature identified in the Southern Blocks as well as an indication that two source rock levels are mature for oil generation.

In directing the 3D survey over this area the Company anticipates having the best chance of delivering muliple drillable prospects. With no salt layer in this region the 3D data quality is considered to be excellent, with high clarity capable of indicating the type of fluids contained within the objective horizons.

2012 Target: Process and interpret 3,500km2 of 3D seismic data H2 2012, provide interim target definition and resource update in Q4 2012 followed by detailed interpretation and CPR early 2013

 
A 'mega-structure' prospect, Nimrod, which is estimated to contain 4.9 billion barrels of oil, is of particular interest in this licence area and is the location for the Southern Blocks' first exploration well, Kabeljou (2714/6-1) - expected to be drilled in Q3 2012. Due to a presence of a Direct Hydrocarbon Indicator ("DHI") over the large closure area which supports the presence of both charge and trap, the prospect has a Chance of Success of 24%.

The main target of Kabeljou is Albian deltaic sandstones that are identified by a correlation to the nearest well in which excellent quality resrervoir is present. Two separate sands appear to be present, both with a DHI in the Albian level and additionally there is a deeper Barremian sandstone target in a structural trap which will also be penetrated with Kabeljou.

Further mapped prospects have been identified at the Albian target level and at a deeper horizon level, believed to be Barremian in age. The age and stratigraphic trap geometry of these prospects at this deeper level are similar to the Kudu Field which demonstrates the validity of the play. Importantly the kitchen for these prospects in 2714A is much shallower than for the Kudu field and oil is the expected charge rather than gas. These prospcets look to be attractive follow-on targets in the event of success with the Kabeljou well.

2012 Target: Drill Kabeljou (2714/6-1) exploration well on Nimrod prospect Q3 2012, analyse results and commence potential appraisial work in 2013