Chariot Oil & Gas secures bids for exploration licenses in offshore Brazil

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.

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).

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

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Oil producers are back at their Covid-19 lows – is it time to buy?
Oil

Oil producers are back at their Covid-19 lows – is it time to buy?

With demand for oil hammered by Covid-19 and talk of “peak oil demand”, there are lots of good reasons to be bearish on oil producers. So, asks John S…
22 Sep 2020
Why you should stuff your end-of-pandemic portfolio with Chinese stocks
China stockmarkets

Why you should stuff your end-of-pandemic portfolio with Chinese stocks

For an end-of-pandemic portfolio, you need assets that can cope with today’s volatility. And that, says Merryn Somerset Webb, means Chinese stocks.
14 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020