Chariot Limited finalizes agreements with Energean for offshore Moroccan licenses

Chariot Limited (AIM: CHAR), an Africa-focused transitional energy group, has finalized its partnership agreements with Energean plc (LON: ENOG), enhancing their operations in the Lixus and Rissana offshore licenses in Morocco. The deal, valued at US$10 million in upfront cash considerations paid to Chariot, marks a significant step in the collaborative development and exploration of these critical energy assets.

Chariot has successfully transferred a 45% and 37.5% stake in the Lixus and Rissana licenses, respectively, to Energean, which will also take over as the operator. Chariot retains a 30% and 37.5% stake in these licenses, while ONHYM (Office National des Hydrocarbures et des Mines) maintains a 25% stake in each. This partnership is strategically poised to leverage Energean’s expertise in developing large offshore gas projects, which aligns with Chariot’s growth objectives and its commitment to enhancing Moroccan energy infrastructure.

The partnership’s immediate focus includes the commencement of the drilling and testing campaign at the Anchois-East appraisal and development well, scheduled for Q3 2024. This campaign aims to further appraise existing gas sands and explore undrilled prospective resources, with a goal to increase the Anchois gas development to over 1 trillion cubic feet (Tcf). A contract has been secured with Stena Drilling for the use of its Stena Forth drillship for this purpose, with an option for an additional well.

Adonis Pouroulis, CEO of Chariot, emphasized the strategic significance of this partnership: “We are very pleased to have received formal approval from the Moroccan authorities for the transaction, for Energean to officially be our partner on the Lixus and Rissana licences and to have the rig contract signed for the Stena Forth. Our teams have been working closely together on well planning to deliver the expedited commencement of this campaign in Q3 2024 and further updates on this will be provided in due course.”

Under the terms of the agreement, Energean will provide Chariot with significant financial support including an additional US$15 million payable upon the final investment decision (FID) and a gross carry of US$85 million, covering all costs up to FID. This includes the costs of the additional Anchois well with a gas flow test and planned seismic acquisition costs for Rissana capped at US$7 million.

Established as a leader in the transition to sustainable energy resources, Chariot Limited focuses on the development and commercialization of energy projects across Africa. The company’s strategic initiatives are aligned with regional energy demands and sustainability goals, enhancing the energy landscape in Morocco and beyond.