Chariot Oil & Gas signs farmout agreement with Woodside for offshore block in Morocco

offshore morocco-strocchi flickrThere is an option for Woodside to fund the costs of an exploration well to an agreed cap for a further 25 per cent equity interest and operatorship of the Rabat Deep Offshore licence area. (Image source: Strocchi/Flickr)Chariot Oil & Gas Investments (Morocco) Limited has signed a farmout agreement with Australia’s exploration and production company Woodside for Rabat Deep Offshore licence area

The area is located 50km offshore in water depths ranging from 150 metres to 3,500 metres.

Following completion of this agreement, which is subject to the approval of the Moroccan government, Woodside will hold a 25 per cent equity interest in the Rabat Deep Offshore Permits I-VI by paying 100 per cent of the 3D seismic acquisition and processing costs incurred across the licence by Chariot Oil & Gas, including back costs and a carry on planned multibeam side-scan sonar and seabed coring, the Australian firm said.

Chariot Oil & Gas will remain the operator with a 50 per cent equity interest and Office National des Hydrocarbures et des Mines (ONHYM) will retain a 25 per cent carried interest.

According to Chariot Oil & Gas, a 149 sq km four-way dip faulted Jurassic carbonate structure — JP-1 — with a gross mean prospective resource potential of 618mn barrels of oil has been identified. The prospect sits adjacent to source rock modelled to be oil generating and is supported by extensive on-block oil slicks, seeps and seismic direct hydrocarbon indicators.

Larry Bottomley, CEO of Chariot Oil & Gas, said, “We are pleased to have signed this farm-out agreement with Woodside and look forward to working with them in order to identify a priority well location for this giant prospect. Woodside is an experienced basin opener, firmly focused on large scale projects with material production potential.

“This transaction is an endorsement of Chariot Oil & Gas’ view on the opportunity and also our strategy to mitigate risk and introduce levered partners in order to validate and finance the development of our assets. As well as progressing our Moroccan acreage we will be using the funds from this farm-out to expedite our work programmes throughout the portfolio.”

In April 2014, Chariot Oil & Gas had acquired 1,700 sq km of 3D seismic data across its Moroccan portfolio. This data is currently being processed and the interpretation would be completed by first half of 2015. This will not only enable the company to technically mature its principal drilling candidate and follow on potential in the Jurassic play fairway but also further define additional leads identified in the Mio-Pliocene and Lower Cretaceous plays in all three of its licences in this region, it said.

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