Chariot racing on Namibia rig contract

The Africa focused commodities explorer, Chariot Oil & Gas, has managed to secure a drilling rig for its offshore Namibia operations.

The Maersk Deliverer rig is expected to arrive on location at the end of March 2012 and drilling of the Tapir South prospect will start shortly afterwards.

Chariot reckons the prospect has a 25% chance of success and "un-risked" prospective resources of 604 million barrels of oil.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

The well will be located 80km offshore Namibia in 2,108 metres of water with a drilling depth of approximately 5,100 metres. It's expected the exploration well will take two months to complete.

Paul Welch, the Chief Executive of Chariot, said he was "extremely pleased" to sign the drilling rig contract with Maersk despite the "tight" rig market.

He added: "This will be only the second well ever to have been drilled in the Namibe Basin".

The firm's shares had risen 11.5% by 11:40am.

BS