A subsidiary of Chariot Oil and Gas has received regulatory approval for its farm-out agreement with sector giant BP in block 2714A offshore Namibia.
The agreement between Enigma Oil and Gas Exploration and BP, first announced on August 8th 2011, has now received full approval from the Ministry of Mines and Energy in Namibia. BP said it will cover the cost of drilling the first exploration well in this block as well as past costs incurred, which have now been received by Chariot.
The operator, Petrobas, owns 50% of the Sourthern Block 2714A, while BP and Enigma have a 25% interest each.
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
"We are very pleased to have concluded this agreement with the support of the Ministry of Mines and Energy in Namibia," said Chief Executive Officer Paul Welch.
"We can now push forward with our drilling campaign on Kabeljou-1 using the additional knowledge and experience of our new partner, whilst reducing our capital and risk exposure," he said.
Chariot shares rose 2.48% to 124p in early trading on Thursday.
BC
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
