Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, announces the assignment of a drilling rig for its upcoming RD-1 well which will target the JP-1 prospect.
Saipem 12000 Drilling Rig
Eni, the operator of the Rabat Deep Offshore licence (Eni 40%, Woodside 25%, ONHYM 25%, Chariot 10%), has secured the Saipem 12000, a sixth generation ultra-deepwater drillship, for a drilling programme to include a one-well drilling slot in Rabat Deep Offshore in Morocco. It is currently anticipated that the rig will arrive on location in the latter part of Q1 2018 and that the drilling of the RD-1 well on the JP-1 prospect will commence shortly thereafter.
The JP-1 Prospect
The JP-1 prospect is a large, four-way dip closed structure of approximately 200 square km areal extent, with Jurassic carbonate primary reservoir objectives and an independently audited gross mean prospective resource estimate of 768mmbbls. As previously detailed in the announcement of 9 January 2017, Eni partnered with Chariot in return for a capped carry on the drilling of the JP-1 prospect as well as a carry on other geological and administrative costs relating to Rabat Deep Offshore and a recovery of Chariot's investment prior to farm-out.
Larry Bottomley, CEO commented:
"We are pleased to see Eni progress operations on the Rabat Deep Offshore acreage and secure the high-performance Saipem 12000 drillship to drill the JP-1 prospect, one of Chariot's priority targets.
JP-1 has the potential to create transformational value in the success case due to the large scale prospective resources, excellent commercial contract terms and robust economics. Success will also materially de-risk other targets we have identified within our neighbouring Mohammedia and Kenitra permits in which Chariot holds a 75% interest."
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.