Proactive Investors UK
Chariot Oil & Gas (LON:CHAR) has begun a 3D seismic programme offshore Morocco.
The programme, which will cover 1,7000 square kilometres, is being carried out by Dolphin Geophysical AS, using the Sanco Swift vessel, and is expected to take six weeks to complete.
It will explore the Rabat Deep area, capturing 1,075 square kilometres, as well as the Loukos and Mohammedia areas, with 250 and 375 square kilometres respectively.
Analysts estimate the cost of the programme at about US$13mln. It is hoped that a future farm-out deal will see Chariot recoup at least a portion of the money it is spending on the seismic programme.
Once complete, the programme will have satisfied Chariot’s work commitments for the current exploration period.
City broker Northland repeated a ‘buy’ recommendation, and a 40.5p target, following today’s project update.
“We remain confident of management’s ability to achieve a valuation uplift on balance sheet intangibles and to financially de-risk an element of its exploration portfolio,” Northland analyst Andrew McGeary said in a note.
