Competent Person's Report
28 Oktober 2010 - 8:00AM
UK Regulatory
TIDMCHAR
RNS Number : 1288V
Chariot Oil & Gas Ld
28 October 2010
For immediate release
28 October 2010
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
CPR confirms Chariot's estimate of gross mean prospective resource volumes
Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused oil and gas
exploration company, is pleased to announce the results from its independent
Competent Person's Report ("CPR") from Netherland Sewell & Associates Inc.
("NSAI") which reports a gross P50 unrisked prospective resource volumes of 9.03
billion barrels with a gross mean unrisked prospective resource volumes of 10.08
billion barrels for its 4 licences offshore Namibia. This compares with and
supports Chariot's internal gross mean unrisked prospective resource figure of
10.06 billion barrels, as announced in its resource update on 6 September 2010.
Highlights:
· Gross mean risked resource potential of 1.13 billion bbls (Net to Chariot
- 0.85 billion bbls)
· Chariot determines an Expected Monetary Value ("EMV") of GBP4.6 billion
(P50) - corresponding to GBP5.98/bbl (US$9.27/bbl) per net risked bbl
· Probabilities of Success marginally higher - average up from 10.7% to
11.3%
· Underpins investment case and supports the excellent work undertaken by
Chariot's in-house technical team
The CPR was independently compiled by industry specialist Netherland Sewell &
Associates Inc. and this corroboration of volume potential is both a strong
endorsement of work undertaken by Chariot to date and underscores the
significant value held within the Company's licence areas. NSAI performed
evaluation work on the original CPR undertaken for Chariot at the time of its
admission to trading on AIM in May 2008 and is highly regarded in its field for
work of this nature.
As part of the new CPR, NSAI undertook a geologic risk assessment on the 11
prospects and 6 lead inventory as identified by Chariot and conducted an
independent review of the individual prospect and lead risking. NSAI's risking
was slightly improved from the Chariot risking in that the average Probabilities
of Success increased from 10.7% to 11.3%. In addition, NSAI commented "Chariot
is currently conducting 3-D seismic analysis, and we believe the results of this
analysis may further reduce prospect risk". The results of this analysis are
expected to be completed during the 4th Qtr of 2010.
On receiving the report, the Company has calculated a total risked EMV of GBP4.6
billion, equivalent to GBP5.98 / bbl (US$9.27/bbl). This is the first time that
an EMV has been placed on the assets to date.
As noted in the NSAI report, "Chariot's technical evaluation and documentation
are comprehensive and high quality," and it is a testament to the work that has
been undertaken to date that resource figures similar to Chariot's own
calculations were generated by a third party. Please see table below for a
breakdown of the key figures from the CPR.
Paul Welch, CEO of Chariot commented:
"I am delighted to report that the CPR has confirmed our previous resource
estimates and has also provided a representative value for our assets. The
validation of our resource potential not only consolidates our investment case
but is also indicative of the excellent work carried out by our in-house
technical team. The risking and subsequent value that is now attributable to our
assets underpins our conviction that Chariot continues to offer huge upside
potential."
+---------------+----------+----------+----------+--------+------+----------+--------+
| | Unrisked Gross (100 Percent) | | Prospective |
| | Prospective Oil Resources | | Post-Tax |
| | (MMBBL) | | Cash Flow(2) |
| | | | Discounted |
| | | | at 10%(MM$) |
+---------------+-----------------------------------------+------+-------------------+
| Licence Area | Low | Best | High | Mean | Pg |Unrisked |Risked |
| / |Estimate |Estimate |Estimate | (1) | % | | |
| Prospect or | | | | | | | |
| Lead | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Northern | | | | | | | |
| Licences | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Tapir North | 166 | 278 | 451 | 294 | 14 | 2,725 | 382 |
| Prospect | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Tapir | 89 | 139 | 211 | 146 | 14 | 964 | 135 |
| Prospect | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Tapir South | 122 | 190 | 277 | 196 | 14 | 1,830 | 256 |
| Prospect | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Tapir South | 83 | 175 | 319 | 190 | 12 | 1,402 | 168 |
| Fan Prospect | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Zamba North | 53 | 91 | 141 | 95 | 12 | 711 | 85 |
| Prospect | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Tapir | 180 | 296 | 449 | 306 | 12 | 2,877 | 345 |
| Northeast | | | | | | | |
| Lead | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Zamba Lead | 350 | 667 | 1,145 | 713 | 15 | 6,862 | 1,029 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Total - | 1,043 | 1,836 | 2,993 | 1,940 | | | |
| Northern | | | | | | | |
| Licences | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Southern | | | | | | | |
| Licences | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| A Prospect | 126 | 215 | 339 | 225 | 16 | 2,292 | 367 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| B Prospect | 197 | 301 | 448 | 313 | 16 | 3,168 | 507 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| C Prospect | 149 | 326 | 620 | 361 | 16 | 3,312 | 530 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| G Prospect | 394 | 712 | 1,192 | 759 | 16 | 7,661 | 1,226 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| H Prospect | 273 | 450 | 714 | 475 | 16 | 4,891 | 783 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| K Prospect | 248 | 518 | 979 | 571 | 16 | 5,438 | 870 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| C | 321 | 942 | 2,153 | 1,118 | 12 | 10,397 | 1,248 |
| Stratigraphic | | | | | | | |
| Lead | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Total - | 1,709 | 3,465 | 6,445 | 3,821 | | | |
| Southern | | | | | | | |
| Licences | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Central | | | | | | | |
| Licences (3) | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Hartebeest | 502 | 1,489 | 3,287 | 1,720 | 7 | 15,491 | 1,084 |
| Lead | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Klipspringer | 587 | 1,772 | 3,916 | 2,055 | 7 | 17,770 | 1,244 |
| Lead | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Oryx Lead | 157 | 467 | 1,025 | 543 | 6 | 4,625 | 278 |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| Total Central | 1,246 | 3,728 | 8,228 | 4,318 | | | |
| Licences | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| | | | | | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
| TOTAL: | 3,998 | 9,028 | 17,666 |10,079 | | | |
+---------------+----------+----------+----------+--------+------+----------+--------+
Totals are the arithmetic sum of multiple probability distributions and may not
add up because of rounding.
(1) Mean values are reported in addition to the low, best and high estimates
for each prospect and lead.
(2) NSAI have not summed post-tax cash flows because of the expected
interdependence of prospects and leads.
(3) Leads in the Central Licences were assessed with 2D seismic data only; all
other prospects and leads were assessed with 3D seismic data.
The resources in the report were estimated using a combination of deterministic
and probabilistic methods and are dependent on a petroleum discovery being made.
These estimates were prepared in accordance with generally accepted petroleum
engineering and evaluation principles and in accordance with the 2007 PRMS
definitions and guidelines as approved by the SPE.
QUALIFIED PERSON
Martin Richards, Chariot's Chief Reservoir Engineer, is the
qualified person for the purpose of this release. Martin has worked in the oil
and gas industry for over 30 years and has an in-depth experience of all aspects
of subsurface management, reservoir engineering and petroleum economics. He has
an MA in Physics from Oxford University, an MSc in Geophysics and Planetary
Physics from Newcastle University and an MEng in Petroleum Engineering from
Heriot-Watt University. He has read and approved the technical disclosures in
this announcement.
+-----------------------------------------------------------------------------+----------+
| For further information please contact: | |
| | |
+-----------------------------------------------------------------------------+----------+
| Chariot Oil & Gas Limited +44 (0)20 7318 0450 | |
| Paul Welch, CEO | |
| +44 (0)20 7634 4856 | |
| Ambrian Partners Limited (Joint | |
| Broker and NOMAD) | |
| Richard Swindells | |
| RBC Capital Markets (Joint Broker) +44 | |
| Josh Critchley, Martin Eales (0)20 7653 4000 | |
| Buchanan Communications +44 (0)20 7466 5000 | |
| Bobby Morse, Ben Romney, Chris | |
| McMahon | |
| | |
+-----------------------------------------------------------------------------+----------+
NOTES TO EDITORS
About Chariot
Chariot Oil & Gas Limited is an independent oil and gas exploration group. The
Group currently holds licences covering eight blocks in Namibia, all of which
are offshore. All of these blocks are currently in the exploration phase.
Shares in Chariot Oil & Gas limited are admitted to trading on the AIM Market of
the London Stock Exchange under the symbol 'CHAR'.
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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