Chariot Oil & Gas Interim Loss Widens On Namibia Impairment

LONDON (Alliance News) - Chariot Oil & Gas Ltd reported a significantly widened loss for the ...

Alliance News 13 September, 2017 | 2:12PM
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LONDON (Alliance News) - Chariot Oil & Gas Ltd reported a significantly widened loss for the first half of 2016, as it booked a hefty impairment on assets in Namibia.

The company said its pretax loss widened to USD53.0 million in the half year to the end of June from USD5.3 million the prior year. It did not report revenue in either period, but booked a USD51.3 million impairment on its exploration asset in the recent period.

This was because it decided not to enter the next phase of exploration on its projects in the Southern Blocks in Namibia.

But it made progress elsewhere in its portfolio, getting approval for the farm-out of its Rabat Deep offshore Morocco project, initiating drilling preparations for the Ventral blocks in Namibia, and in Mohammedia and Kenitra, Morocco.

"As a result of rigorous and continued focus on risk management and capital discipline, Chariot has been able to use a strong cash position and clear strategic objectives to continue to invest in the portfolio despite the prevailing 'lower for longer' oil price business environment," said Chief Executive Officer Larry Bottomley in a statement.

"At the same time we have succeeded in securing a drilling partner on our Rabat Deep acreage, Morocco, with the farm-out to Eni completed in January. With the RD-1 well now carried and due to spud in the latter part of Q1 2018, our near-term focus will be to secure partners on additional priority prospects in Namibia and Morocco," Bottomley added.

Shares in Chariot were up at 14.08 pence Wednesday.

By Hana Stewart-Smith;; @HanaSSAllNews

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Chariot Oil & Gas Ltd 8.44 GBX -0.66 -
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