Chariot Oil and Gas, has failed to secure a drilling rig for its exploratory campaign off the shore of Namibia.
In an announcement issued today the firm says: "the market for deepwater rigs has tightened markedly, making it more challenging to secure an appropriate rig to carry out a one-well programme in Namibia without paying a significant premium."
Chariot had pencilled in drilling in the final quarter of this year, unfortunately it lost out to another operator who could offer the rig company a longer (and therefore more remunerative) programme.
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
Chariot's chief executive, Paul Welch, says the firm still expects to have completed a well by the middle of next year: "Whilst it is disappointing not to have secured a rig to drill Tapir South this year, we continue to negotiate other options at commercially attractive rates. The rig market is tight but also very dynamic and whilst we are looking to drill as soon as possible next year, we need to manage this to optimise our drilling programme going forward."
Shares in chariot had fallen 15% by 10:12. Over the last six months, the stock has fallen 53%
BS
-
What investors can expect from stocks and economies in 2025There are reasons for investors to be hopeful about 2025, with slowing interest rates and moderating oil prices. But trouble may be brewing in bond markets
-
Is Xi Jinping ready for Donald Trump's tariffs on China?The ascent of Donald Trump will bring new challenges for Xi Jinping
