LONDON (Alliance News) - Chariot Oil and Gas Ltd Thursday said it has decided not to apply for a new exploration license in the northern blocks in offshore Namibia as it is too risky.
The current license for blocks 1811A and 1811B expires on October 26, and Chariot said a new license would need significant investment both in capital and time.
"The Chariot team has analysed significant amounts of proprietary seismic and well data, as well as integrated information from third-party drilling activity to study the possibility for long-range hydrocarbon migration to the Zamba prospect. This work, however, has not significantly de-risked the prospect," said Chariot.
"Management considered it too high risk to justify further near-term exploration expenditure. Whilst Chariot considers the acreage to remain prospective, this decision was made in line with the company's focus on portfolio management and capital discipline," it added.
"With the diversity we now have in our portfolio, Chariot can manage its assets in terms of risk and their associated fit within the aspiration of zero cost exploration. The company will continue with this strict capital discipline and build on its asset base," said Chief Executive Larry Bottomley.
Chariot shares were down 3.8% to 11.55 pence per share Thursday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Chariot (CHAR)