Chariot Oil & Gas Limited has informed that the farm-out signed between its subsidiary, Chariot Oil & Gas Investments (Morocco) Ltd. and a subsidiary of Woodside has been approved for the Rabat Deep Offshore permits I-VI by the Moroccan authorities.
Woodside finalised an agreement with Chariot Oil & Gas to farm-in to the prospective Doukkala Basin offshore north western Morocco in July 2014. Under the agreement Woodside acquires an initial 25% participating interest in the Rabat Deep Offshore permits I-VI.
As part of the farm-out agreement, Woodside committed to pay 100% of the 3D seismic acquisition and processing costs incurred across the licence by Chariot, other back costs and in addition agreed to carry Chariot on future work up to an agreed cap, including a multibeam side-scan sonar and seabed coring survey.
Majority of funds received
According to Chariot, a substantial part of these funds has now been received and, as a result, the company now expects its cash balance as at December 31, 2014 to be approximately $52 million. Furthermore, the remaining balance of these funds is anticipated to be received during Q1 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.
Chariot remains Operator of the licence with a 50% equity interest, with the Office National des Hydrocarbures et des Mines (ONHYM) retaining a 25% carried interest and Woodside holding 25%. As part of the agreement, Woodside has an option to acquire a further 25% of Chariot’s equity and become Operator of the licence in return for a full well carry up to an agreed cap consistent with other farm-outs concluded in the area.