Namibia – Pancontinental – Tullow

On 16 December, Pancontinental Namibia (‘Pancontinental’) received a purported cash call from Tullow in the amount of US $552,897 claiming to represent 35% of the following costs allegedly incurred by Tullow in the 2014, 2015 and 2016 calendar years:  Exploration common costs;  Exploration licence management;  Tullow’s local office costs; and  Exploration general, non-Project.

Tullow claims to have made an adjustment to the joint venture accounts as a result of conducting an internal review of costs incurred since 2014, thus purporting to give it the right to issue the purported cash call.  This claimed adjustment was made without any prior consultation with Pancontinental.  Pancontinental will be seeking full and complete details from Tullow of its claimed adjustment and of its purported cash call, but is of the view that the items, if accurate, are covered by the free carry as defined in the Tullow Farmout Agreement dated Sept 6th, 2013 and as such the cash call is not valid.  Pancontinental will issue a further statement when more information is available.

For and on behalf of Pancontinental Oil & Gas NL

Barry Rushworth CEO and Executive Director

Namibia – Impact Oil and Gas – Acquisition of 1,900km² of 3D seismic offshore Namibia commences

“London, [12 December 2016], Impact Oil and Gas (“Impact”), the African-focused pure exploration company is pleased to announce that it has started acquiring proprietary 3D seismic data offshore southern Namibia on Block 2913B. The Block, which has a water depth from 2,500m, lies 300km offshore and is immediately adjacent to the South Africa maritime boundary. The survey will cover approximately 1,900km2 of 3D seismic, targeting the highly material Aptian basin floor fan reservoir. Impact holds an 85% working interest in the Block and is the main operator. NAMCOR, a state oil company, holds 10% and Grisham Assets Corp. 5%.

Petroleum Geo-Services (“PGS”), a dedicated marine geophysical company, has been contracted to carry out the survey using its pioneering GeoStreamer® technology to acquire high quality 3D seismic data using the M/V Ramform Sterling. The survey is expected to be completed in late December 2016.

Impact’s contractor, PGS, is led by a team of highly experienced maritime and seismic industry professionals, who have proven reliability working offshore Namibia and are well renowned for their fleet of high performance 3D seismic vessels, incorporating innovative design and advanced maritime technologies for improved efficiency and operating to international best practice safety standards.

Impact acquired Block 2913B in February 2014 and subsequently licenced 2D seismic in July 2014, which modelling identified a large apron fan draped over oil-mature Aptian source rocks to form an extensive stratigraphic trap. Data processing and interpretation on the 3D seismic will begin once the survey is completed, early next year.”

As can be seen – the Impact acreage is close to Chariot and Shell’s acreage.

 

Drilling Costs

Posted by Jimmy on iii

A key factor in farming out a prospect is great geology and huge potential which chariot has in all its areas of interest. But to avoid shareholder dilution these prospects need to be farmed out. The fall in the oil price and the reduction in drilling has dramatically reduced the cost of offshore deep water drilling.  A company called hyperdynamics has just secured a high performance deep water rig at a cost of $225,000 per day.

See:  http://www.energy-pedia.com/news/guinea-republic/hyperdynamics-signs-letter-of-award-with-pacific-drilling-for-168988

Assuming 50 days on location and say another $125.000 per day for consumables and services gives a very rough cost of $17.5 million to drill a giant prospect add say another $10 million it’s still really cheap compared to $100 million cost at the height of the oil prices.

This should make farm outs in Namibia a lot easier and indicates how giant oil discoveries in deep water can still be very economic.

Jimmy

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.

 

 

Namibia – Eco (Atlantic) Oil and Gas – April 2016 Presentation

A new presentation is available : here . It highlights the relationship with Tullow oil who recently entered into a drilling agreement with Pancontinental.

Chariot – a great week – one of many to come.

Chariot had an outstanding week this week and the Penny has started to drop on its massive transformational potential.

With a free carry announced the week before on Morocco with ENI, in addition to Woodsides involvement,  and then Tullow entering the drilling phase with Pancontinental in nearby Nambia acreage and in the current climate, it sends a massive vote of confidence on both Moroccan and Namibian acreage.  The cash back (to be disclosed) from ENI to Chariot will bolster its already good cash pile. Chariot therefore has a strong cash position,  more cash to come, a free carry – and that’s just the start. The increase in share price has been great – but the market has not yet valued the free carry! yet ….. and that’s a massive opportunity.

The Morocco farm out has, however,  released the pressure valve for long term shareholders a tad, and will play into Larry’s negotiations for further farm-outs. You can bet on it. Larry is a tough negotiator which has been painful at times, but will pay off going forward. (FYI: See here for an idea of potential back costs we are looking at in farm-out negotiations).

The change in share price trend could be seen a few weeks back although I must admit, I thought it was due to the Mauritania and Senegal success of Kosmos and Cairn and their respective partners. Given Kosmos and Cairn have had some of the largest discoveries in the world of both Oil and Gas in the last few years – and Chariot is in the same oil and gas fairway – you have to wonder what Larry will get for the Mauritania acreage! I expect it to be farmed out soon – and I expect more cash. Interestingly, Cairn are also our partner in Mauritania. DYOR and check how  many small AIM oil companies have a significant interest in Mauritanian acreage with its massive upside .. hint – there are only two. Chariot is one of them.

Chariot therefore, in my personal opinion,  has a very realistic chance of getting another RNS in the next 2 quarters for another free carry – and its most likely to be Mauritania. It might also be sooner than we think.

Imagine a situation of an AIM exploration company having two free carries on elephant prospects running simultaneously. Imagine what would happen if Namibia or Brazil then got a free carry and/or cash back. And if Tullow strike oil in Namibia …!!.

Chariot is now the best frontier exploration company on AIM. Period. And I bet Newlands capital think the same. Add to this the reducing free float and it becomes a perfect storm for a sustained trend upwards in share price.

I continue to accumulate – on pull backs – and took a massive chunk in the 4’s and 5’s not so long back. I am sure this was helped by plenty of de-rampers’ with clever sarcastic debating points. Thank you 😉 and  I will keep on accumulating up to £1.

The day traders will come and go – I am more of a long term accumulator investor. I am convinced this will be life changing for those with a similar strategy. You know who you are . Good luck…

Namibia – Pancontinental – Tullow – Elect to Drill

Excellent news for Namibia offshore, Tullow and Pancontinental, and of course Chariot with its excellent nearby acreage, is the news that Tullow has elected to enter the drilling phase of a farm-in to Namibia PEL37.

Once again this shows that, given the current climate, there must be something rather exceptional about offshore Namibia that has had Shell, Murphy, OMV etc buy into acreage. Chariot of course has much  more acreage than Tullow, and some additional juicy prospects.

Good luck to Tullow and Pancontinental. Given that SHELL will be drilling across the offshore border in South Africa, this makes Chariots acreage even more interesting!

Helios Chariot - Namibia - Summary

Namibia – Pancontinental – Tullow – Extension Request

This is going to be interesting! Tullow have requested another week of extension to the 7th April 2016 to decide if they continue with the Namibia License – and drill etc.

Click here

Helios Chariot - Kudu - Condensate