AIM-listed Chariot Oil & Gas has reported that the company has, subject to final contract, been successful in its bids for a 100 per cent interest and operatorship in four shallow-water exploration licences in the Barreirinhas basin of offshore Brazil.
The acreage position of the combined licences, which are technically known as BAR-M292, BAR-M-293, BAR-M-313 and BAR-M-314, totalled 768 square kilometres and the blocks are located 70km offshore in water depths ranging from 25 metres to 1,700 metres.
Chariot Oil and Gas said that the award of the licences would be subject to the signature of a concession agreement between Chariot and the Brazilian National Agency of Petroleum, Natural Gas and Biofuel (ANP).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Under the terms of the agreement, Chariot Oil and Gas said that the company would satisfy its work commitments through the acquisition and processing of 3D seismic covering the entirety of each block during an initial exploration period of five years.
The Barreirinhas basin lies on the north eastern coast of Brazil, along the transform margin that is conjugate to the Atlantic offshore basins in Cote d'Ivoire and Ghana.
Larry Bottomley, Chief Executive Officer, commented: "In acquiring these licences, Chariot demonstrates its commitment to its strategy and long-term goal. The company has acquired an additional large equity position in a new and emerging hydrocarbon province.
"Award of these licences will broaden our footprint onto both Atlantic margins and provide further opportunity for levered partnering and funding to explore for material accumulations of hydrocarbons."
Chariot Oil and Gas' share price was up 2.63% to 19.50p at 09:30 on Wednesday.
MF
-
Why now is the right time to invest in biotechThe biotech sector holds huge potential for investors, with strong growth and attractive valuations. Here's the best way to play it.
-
Zoopla: Busiest home buying May since 2021, but property asking prices slideBuyers return to the market after the end of higher stamp duty thresholds and post-Easter lulls, but average sales are £16,000 below asking price
