Chariot Oil & Gas Limited is pleased to announce the results from its latest independent Competent Person’s Report (“CPR”) from Netherland Sewell & Associates Inc. (“NSAI”) which reports gross P50 unrisked prospective resource volumes of 14.4 billion barrels (“Bbbls”) with gross mean unrisked prospective resource potential of 16.1 Bbbls, a slight increase of 3.5% or 535 million barrels, within Chariot’s licence areas offshore Namibia.
P50 risked resource potential of 2.2 Bbbls (Net to Chariot – 1.5 Bbbls)
Based on NSAI’s gross, risked discounted cash flows for the entire prospect and lead inventory Chariot
determines a net Expected Monetary Value (“EMV”) of £11.2 billion (P50) – corresponding to £7.47 (US$12.00) per net risked bbl
Probabilities of Success in line with Chariot risking
Supports the investment case and the work carried out by Chariot’s in house technical team
This CPR updates a previous study which reported gross P50 unrisked resource volumes of 9.0 Bbbls with gross mean unrisked resource volumes of 10.1 Bbbls, as announced on 28 October 2010.
The earlier study was undertaken prior to the identification of further resources in the Tapir Complex in the Northern licence and the Nimrod prospect in the South. The updated potential resources resulted primarily from the reprocessing of 3D seismic data and subsequent AVO analysis work.
As part of this update, NSAI undertook a geologic risk assessment on the updated prospect and lead inventory as identified by Chariot and conducted an independent review of the individual prospect and lead risking. Overall, the CPR resource volumes were slightly higher than Chariot’s estimates with a gross mean unrisked figure totalling 16.1 Bbbls, with increased figures for both the P10 and P90 estimates. NSAI’s risking was broadly in line with Chariot’s risking across the whole inventory, with minor adjustments to some prospects.
On receiving the report, the Company has calculated a total risked EMV of £11.2 billion, equivalent to £7.47 (US$12.00) per net risked bbl, up from £4.6 billion, equivalent to £5.98 (US$9.27) per net risked bbl as previously stated.
Paul Welch, CEO of Chariot, commented:
“These volumes have resulted from the extensive geological and geophysical work undertaken by the Chariot technical team across all our licence areas. It is very satisfying to continue to have third party endorsement of our prospective resources. Having established the potential of our assets, we now look forward to the next stage of our development and the drilling of our prospect inventory.”