Proactiveinvestors
by Jamie Ashcroft
Advancing the Anchois gas project towards development is the key focus for the remainder of 2020.
Chariot Oil & Gas PLC (LON:CHAR) has highlighted its continuing work to advance the Anchois gas field, offshore Morocco, to define the project and unlock debt financing.
Posting its full-year 2019 results, the company confirmed that completion of pre-FEED work for the gas field is the key strategic focus for the group through the remainder of 2020.
It is working to progress concept testing, selection and definition, along with engineering modelling and design. Meanwhile, commercially, it is aiming to secure heads of terms agreement with potential offtake partners.
READ: Chariot Oil & Gas remains “open to opportunities”
“The studies undertaken have highlighted the technical feasibility and economic viability of a development and the gas market analysis confirms the potential to deliver gas into Morocco and/or Spain at a price that delivers strong returns on the capital invested,” Larry Bottomley, Chariot chief executive said in the results statement.
Bottomley added: “Gas from Anchois has the potential to form a fundamental part of the energy mix, aiding the country’s transition from imported oil and coal in its energy consumption, with any excess gas exported via the GME to Spain.
“Reliable and plentiful supply of energy from a domestic source can enhance conditions for economic growth, particularly in such a fast-growing economy where energy demand is predicted to double between 2015 and 2030.
“A successful project delivery and development of a sustainable Moroccan gas business will act as a catalyst for jobs in Morocco and the overall wealth of the Kingdom.”
In terms of its financials, Chariot noted it had a cash balance of US$9.6mln at the end of December, 2019, and that it has no remaining work commitments. It said it expects annual cash overheads to be significantly lower following extensive cost-cutting, down to US$2.5mln from US$4.5mln.
Chariot is debt free and the company noted that it has a strong record of capital discipline, meanwhile, it is in a position of strength to respond to current market uncertainty and commodity price weakness.
The pre-revenue explorer reported a US$4.05mln loss for the year ended December 31, 2019.
Along with the Anchois field, Chariot retains high potential offshore exploration acreage in Namibia, Brazil and Morocco.
