Chariot Oil & Gas, Block Energy.
Chariot Oil & Gas
Whilst there is little we don’t already know in these statements it is worth taking a look at what those six months and those since mean to the company. The new venture in the Lixus licence changes the risk in the Chariot portfolio and opens up opportunities for appraisal, near term development as well as ‘material upside’.
Since the acquisition the CPR has indicated 1 TCF for Anchois and its satellites plus Anchois North as a low risk priority satellite with 308 BCF of 2U prospective resources with a geological probability of success of 43% as well as additional on-block prospects of in excess of 1.2 TCF audited 2U prospective resources. Feasibility studies have indicated that development is technically feasible as a single phase or a staged development and the Moroccan market remains strong with high gas prices. In addition the company are in the process of assessing a large number of potential partners as a serious option for a potential farm-out in one way or another.
With cash of $12.1m which way exceed any commitments Chariot is in a very strong position, indeed the cash is more than the share price indicates thus giving nothing at all not only from Lixus but from its existing substantial portfolio for which it continues to seek additional partners. Conference call later which I hope to join so anything additional from that will be added later
A West Rustavi update this morning from Block, the sidetracking on the 38Z has commenced targeting the middle and upper Eocene formations ‘with the benefit of valuable new information’. At the WR-16aZ well oil and water production has varied significantly partly due to the failure of certain downhole equipment but remains at a strong flow of oil, water and gas and the recent week was 230 b/d of liquids with a water cut of 78%, higher than expected and a flow of 130 mcf/d of gas.
The encouraging news is that this has proved the productivity of the Middle Eocene but also making it difficult to assess and delaying production rates which has a knock-on effect on timing of announcements. Having said that this was always to some extent a learning process and results from these wells over the next few months should give us a much better idea of what this part of Georgia can impart.