Chariot Oil & Gas Limited significantly increases gas resources offshore Morocco

Proactive Investors
Jamie Ashcroft

“This asset has the capacity to be a value accretive and long-term project of national significance to Morocco,” said acting chief executive Adonis Pouroulis.

Chariot Oil & Gas Limited (LON:CHAR) has announced a significant increase in resources at the Anchois gas project, offshore Morocco.

Total remaining recoverable gas resources now exceed 1 trillion cubic feet, after increasing 148%.

The new resource, estimate by consultant Netherland Sewell & Associates, comprises 361bn cubic feet of contingent resources for development and a further 690bn cubic feet of prospective resources.

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Moreover, the company highlighted three low-risk prospective targets – C, M and O sands – that can be drilled at low cost.

The resource upgrade comes following the receipt of reprocessed 3D seismic data across the Lixus Offshore Licence, which is host to the Anchois project.

Chariot’s technical team continues efforts to identify and evaluate further prospects within the Lixus acreage.

Adonis Pouroulis, acting Chariot chief executive, noted that the recent work on Lixus has confirmed the materiality of the Anchois Gas Field Development project.

“We continue to hold the view that this asset has the capacity to be a value accretive and long-term project of national significance to Morocco,” Pouroulis said in a statement.

“The Anchois development has the potential to supply material gas volumes into existing markets in the near-term, and the exploration prospectivity of the Lixus licence is of a scale sufficient to provide the Moroccan power sector with a clean, reliable, low cost and sustainable supply of gas for decades to come.

“We continue to make progress in unlocking the Anchois development and generating near term cash flows and we look forward to keeping our shareholders updated on developments on Lixus and, as previously announced, the other opportunities being reviewed over the coming months,” he added.