by Jamie Ashcroft
ENI has taken a 40% stake in the Rabat Deep exploration project, leaving Chariot with 10%. In return it will pay Chariot’s share of costs for the proposed JP-1 exploration well, anticipated in 2017.
Chariot Oil & Gas Limited (LON:CHAR) has unveiled a deal with Italian major ENI to sell the majority of its stake in the Rabat Deep exploration project, offshore Morocco.
ENI is taking a 40% share in Rabat Deep, leaving Chariot with 10%. In return it will pay Chariot’s share of future drilling costs for the proposed JP-1 exploration well.
The Italian group will lead future work at Rabat Deep as the project operator.
Additionally, ENI agreed to cover certain other geological and admin costs in Rabat Deep’s next licence period and it will also pay some contribution to Chariot’s investments in the project to date.
Chariot currently expects the JP-1 well to be drilled in 2017.
“The response we had to the partnering initiative and subsequently securing this deal endorses our technical view of the asset and is another milestone in delivering on our strategy,” said Larry Bottomley, Chariot chief executive.
“Eni is a world-class explorer and an experienced operator focused on projects with the potential for material production.
“Despite the challenges posed by current market sentiment, Chariot’s high quality assets continue to attract industry investment.
“We are excited that we now have an opportunity to see one of our priority targets through to drilling at near zero cost to the company, with the agreed cap above recent drilling cost estimates provided by an independent party.”
Chariot retains a 75% interest in the neighbouring Mohammedia permit which could be de-risked significantly should the Rabat Deep well prove successful, as it hosts what the company describes as “significant follow-on exploration potential”.
