Chariot Sells Stake in Namibia Block to BP

- Chariot Sells Stake in Namibia Block to BP

Monday, August 08, 2011
Chariot O&G Ltd.

Chariot announced that its wholly-owned subsidiary, Enigma Oil & Gas Exploration (Pty) Limited, has entered into a farm-out agreement with BP, whereby BP will acquire a 50% share of Chariot's equity interest in Southern Block 2714A (License 20). As announced on June 28, 2011, Petrobras has elected to take up operatorship and retains a 50% stake in the block.

Under the terms of the agreement, BP has committed to cover Chariot's cost of drilling the first exploration well, as well as past costs incurred.

Block 2714A is located in the Orange Basin offshore Namibia and covers an area of 5,481km². The Nimrod prospect is situated within this license and is the largest of Chariot's prospects. With this farm-out, Chariot will continue to pursue its drilling campaign within this license area whilst sharing in the costs, risks and rewards of exploration. Funds received and retained through this deal will be used in further exploration and appraisal work.

This agreement remains subject to the full approval of the Ministry of Mines and Energy in Namibia. It includes standard representations and warranties given by both parties and other conditions precedent.

Paul Welch, Chief Executive of Chariot, said, "We are delighted to enter into this farm-out agreement with BP whose global expertise of deep water exploration and related petroleum systems is exceptional and whose contribution to our campaign going forward will be invaluable. It is a pleasure to welcome another major oil company as a partner.

"It has been a key strategic objective for us to farm down our assets in order to facilitate exploration drilling, retain capital and mitigate risk; we are very pleased to have made progress towards this. We look forward to proving up the potential of our assets alongside our partners, as we seek to deliver long-term value to our shareholder."

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Chariot O&G In Talks to Farm-Out Blocks Offshore Namibia

Chariot O&G In Talks to Farm-Out Blocks Offshore Namibia

Thursday, March 31, 2011
Chariot O&G Ltd.

Chariot O&G provided an update on the farm-out process and progress with regard to drilling plans and further exploration work achieved across its license acreage offshore Namibia.

Chariot has been very encouraged with the offers that have been received to date and reported that it is at the advanced negotiation stage on several blocks in the farm-out process. Discussions continue and the Company looks forward to updating the market with further information shortly.

Chariot remains committed to drilling its first well in 4Q 2011 and is pleased to report that a contract has been signed with Senergy (GB) Ltd to provide drilling and support services for its planned wells on the Tapir North (Northern License) and Nimrod (Southern License) prospects. Chariot management and a team from Senergy recently visited Namibia as part of this process, meeting with government officials and local contractors. As previously stated, Chariot is planning to drill one well in 4Q 2011 with a second in 1Q 2012.

Chariot also reports that additional attribute analysis and mapping work has continued on the 3D seismic acquired in the Southern blocks. As a result it expects to release a further resource update following the completion of this work in the early part of the second quarter.

Paul Welch, CEO of Chariot commented, "Our farm-out efforts continue to be our main focus of activity and these discussions are progressing very well. Concurrent to these negotiations, we are very pleased with our developments in regard to moving our drilling efforts forward. This year is going to be one of significant progress for the Company and I look forward to providing updates in due course."