By Alex MacDonald
LONDON--U.K.-listed Chariot Oil & Gas Ltd. (CHAR.LN) said
Tuesday that it is disappointed that its partner Woodside Petroleum
Ltd. (WPL.AU) chose not to exercise an option to increase its stake
in the Moroccan Rabat Deep prospect and become project
operator.
Australia-based Woodside had an option to take over as operator
of the project from Chariot and fund drilling costs for a further
25% equity stake in Rabat Deep. Instead Woodside decided to
maintain its existing 25% stake, Chariot said.
Chariot owns a 50% stake in the project while Morocco's
state-backed Office National des Hydrocarbures et des Mines also
owns 25%.
"It is disappointing that Woodside has not exercised its option,
but we remain optimistic regarding the potential of the Rabat Deep
permits and particularly that offered by the JP-1 prospect," said
Larry Bottomley, chief executive of Chariot. "As mentioned
previously, partnering is tougher, but we also believe that this
climate can be an opportunity for those who are looking to take
advantage of high-potential assets, such as those within our
portfolio."
At 0718 GMT, Chariot's shares were down 2.4% at 8.10 pence a
share, giving a market capitalization of GBP21 million ($31
million).
The company also said that the results from its Loukos and
Mohammedia seismic data surveys offshore Morocco had identified
several material prospects.
Chariot holds exploration licences covering four blocks in
Namibia, one block in Mauritania, three blocks in Morocco and four
licenses in the Barreirinhas Basin offshore Brazil.
Write to Alex MacDonald at alex.macdonald@wsj.com
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