Wheels come off Chariot Oil and Gas

Chariot Oil and Gas, the Africa focused commodities explorer has had a shocker after revealing a failed well dig.

The Kabeljou well, dug offshore Nambia, has returned "no commercial hydrocarbons" despite having been drilled to 3,150 metres.

The news sent Chariot's stock into freefall, with the shares down 65% at 12:43.

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 company now says it will issue a resource update once the data from the project has been analysed.

The group's Chief Executive, Paul Welch was trying to put a brave face on the failure on Monday morning, saying "Whilst the results from Kabeljou are disappointing, the fact that we encountered source rock within this well is important. The Nimrod prospect was our largest target in the south but there are still other areas of interest in this licence...

"Our overriding strategy remains the same - this is the second well of a larger 4 to 5 well programme in Namibia and we will continue to move forward with our work in the central and northern blocks."