Chariot Oil & Gas has agreed a farm-in deal with Eni covering four exploration permits in Morocco’s Rabat Deep Offshore licence that will facilitate drilling of the highly prospective asset JP-1.
Under the conditional agreement, Eni will acquire a 40% equity interest in and become operator of exploration permits I-VI with Chariot gaining a carry on drilling JP-1 to an agreed, undisclosed, cap, Chariot said on March 30.
Eni will also carry Chariot for other geological and administrative costs for its work commitments in the next licence period as well as paying a contribution towards Chariot’s investment to date at Rabat Deep Offshore.
The licence is located approximately 30-km offshore in 150-3,500 metres of water and where prospect JP-1 has undergone detailed processing and interpretation of 3-D seismic. As a result, JP-1 is described as “a large, four-way dip closed structure of approximately 200 square km areal extent, with Jurassic carbonate primary reservoir objectives”.
Based on this data, JP-1 has an estimated gross mean prospective resource of 768 million barrels of oil, according to an independent Competent Person’s Report prepared by Netherland Sewell and Associates Inc.The Jurassic offshore Morocco has been found to have “excellent reservoirs and the presence of a light oil charge”, Chariot said.
The Alternative Investment Market (AIM) listed junior said Eni’s funding would be used to de-risk and progress its assets towards drilling in order to provide an opportunity for “transformational” development of its portfolio.
The statement noted that additional prospects and leads had been identified within the Jurassic fairway and significant follow-on exploration potential was anticipated in Rabat Deep and the neighbouring Mohammedia permit, which Chariot operates with a 75% equity interest.
“Despite the challenges posed by current market sentiment, Chariot’s high quality assets continue to attract industry investment. We are excited that we now have an opportunity to see one of our priority targets through to drilling at near zero cost,” said Chariot’s CEO, Larry Bottomley.
On completion of the farm-in, Chariot will hold a 10% equity interest in Rabat Deep. The other joint venture partners are Woodside with 25% and Office National des Hydrocarbures et des Mines with a 25% carried interest.