Brazil – Barreirinhas Basin

Chariot owns acreage in the basin and is surrounded by the ‘bog boys’ who have paid a tidy sum for their acreage. There was a farm-in with Azilat that fell through but actually was fortuitous for Chariot in that it performed the 3D seismic cheaply and  maintained its share of the acreage. Had they gone through with the deal then it is likely they would have paid a similar sum and given away acreage to Azilat. A result and Chariot owns 100%. The 3D Seismic capture completed in March 2016.

Helios Chariot - Barreirinhas Basin Brazil

I have not been able to find too much about the basin other than in 2009 Devon Energy discovered gas in an offshore block.

In addition there are several WikiLeaks entries including Emails from Stratfor – a well respected intelligence provider.

By Upstream staff : Extract: Brazilian giant Petrobras, US player Devon Energy and South Korea’s SK Energy have hit gas with the 1DEV14AMAS wildcat well, drilled in Block BM-BAR-3 in the frontier Barreirinhas basin, Brazil’s petroleum regulator ANP said. Volumes were not made public. The well was drilled to 4825 metres by Transocean’s Deep Water Discovery rig in water depths of 2336 metres, a notice on ANP’s website said. It is not yet known if the find is commercial. Devon operates the block with a 45% stake. Petrobras has 25% with SK holding the remainder. The Barreirinhas basin is a little tested frontier region that explorers believe has a lot of potential.

 

Chariot – Latest Interims & Presentation

A very good set of interim results was accompanied by a very interesting September presentation that bodes well for Morocco and Namibia. There are some elephant sized opportunities in Chariot’s acreage for sure.

The market seems to like what it is seeing.

 

 

Chariot – Brazil 3d Seismic Complete

31 March 2016

 Chariot Oil & Gas Limited

(“Chariot”, the “Company” or the “Group”)

3D Seismic Programme Completed, Brazil

 Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, today announces that it has completed the 3D seismic acquisition survey covering its 100% operated BAR-M-292, BAR-M-293, BAR-M-313 and BAR-M-314 licences in the Barreirinhas basin, offshore Brazil.

 This survey was comprised of approximately 785km² of data and was conducted by Polarcus, targeting a number of leads that had been identified on 2D legacy data. The data will now be processed and then interpreted in-house.

 

Brazil- Barreirinhas Basin Broadband Survey – November Start

Helios Chariot - Barreirinhas Basin BrazilCGG has received all necessary permits to start acquiring the industry’s first regional broadband seismic survey of the Barreirinhas basin in the Equatorial Margin of northern Brazil in early November.

The MegaBar 3D multi-client survey has received strong industry support and will benefit from the full bandwidth offered by BroadSeis to illuminate the untapped potential of this frontier basin. The 14,500 km2 survey will be acquired by the Oceanic Vega, deploying Sercel Sentinel solid streamers.  The basis is 5okm2 of which half is offshore – and this means that the 3d covers half of the entire offshore basin!

http://www.offshoreenergytoday.com/cgg-ready-for-seismic-survey-of-brazils-barreirinhas-basin/

I wonder if Chariots acreage is in the 3d survey?

Helios Chariot - Brazil Basins

Brazil – Petrobras strike oil

Offshore : http://www.theoilandgasyear.com/news/petrobras-strikes-again-in-carcara/

Chariot Oil and Gas – Elevator Pitch

Chariot Oil and Gas has acreage in Namibia where it has previously undertaken two drills neither of which succeeded in finding commercial hydrocarbons. Further drills by HRT with Petrobras have discovered a working petroleum system in Namibia. Chariots key acreage is in the central area, and also in the south near the commercial Kudu gas field. SHELL have acreage near to Chariots as does Murphy and OMV. Pancontinental have a partnership with Tullow in nearby acreage.

The company also has acreage in Mauritania where Kosmos recently found 14tcf of gas –  the largest gas discovery ever in West Africa. Chariot has a partnership with Cairn in Mauritania – and Cairn were recently successful in finding two of the largest oil discoveries in the world in Senegal – which is just down the coast and has similar geology to Chariots acreage. Kosmos are scheduled to drill two further wells in Mauritania in Q4 2015.

Cairn are sharing Seismic from Senegal with Chariot for their Mauritania acreage which the potential for a read-through win:win is clear.

Chariot also has acreage in  Morocco. It has farmed out one license which recovered back costs for its three licenses which all have 3d seismic performed. The partner is Woodside Energy. Chariots former non exec chairman now works for Woodside Energy. Pura Vida from Australia are currently drilling in offshore Morocco with Freeport. Morocco has the advantage of infrastructure that links Europe to gas from North Africa. Algerian gas goes through the Morocco pipe line. Any gas or oil find has the advantage of a ready market in bath Morocco and Europe and  a low tax regime which means higher margins on any find, and a lower break point for commerciality.

Chariot holds acreage in Brazil – 4 blocks. It has not performed seismic analysis on this acreage and does not have a partner in this acreage at present. A previous potential partner – Azilat – fell through. Chariot is waiting for others to drill offshore near its acreage before it drills.

A placing in August 2014 raised £15m before costs to cover a new venture and also to pay for a cheaper seismic collection with Azilat in Brazil. Neither have yet come to fruition.

Directors of Chariot also recently took a pay cut, and the CFO left to pursue other business interests.

The cash position is good, the financial commitments are low. The share price performance has been poor. There have been some recent small market share purchases by non-exec directors. Each time they buy in the market they get the same volume for free subject to conditions such as longevity of holding the shares.

There are some significant share holders. The original founder owns 10.9%, Richard Griffiths owns 6%, Heindrich Ndume (Namibia) 7.7% and Sprott asset management 6.3%. Previous significant holders who took part in the placing have reduced their interests or sold out.