The Company acquired Block C19 offshore Mauritania in June 2012 and holds the licence through its wholly owned subsidiary Chariot Oil & Gas Investments (Mauritania) Limited. This acquisition was in line with Chariot’s strategy of looking to unlock further potential in the deep water Atlantic margins and balance the portfolio by securing another asset in a proven hydrocarbon province.
Whilst Mauritania is an established oil producing region, it is still relatively underexplored and Chariot considers this to be a highly desirable region for oil and gas exploration. The Company’s acreage was acquired prior to other major industry explorers and Chariot has fast-tracked its exploration here with a 3,500km² seismic acquisition programme already completed and being processed. A dataroom was held in late 2012/early 2013 to look to secure a farm-in partner to cover the costs of this programme and to share in the risk and expenditure in the block going forward. In August this year Chariot announced that Cairn had farmed in for a 35% equity interest in return for paying c. US$26m for the costs of the 3D seismic programme and other back costs. The block remains operated by Chariot with a 55% interest and SMH has retained its 10%.
With oil shows present in the licence area from previous drilling and being nearby to other oil discoveries, Chariot considers this asset to have giant play potential.