OIl and gas firm Chariot Oil & Gas said Monday it has negotiated the key terms of a new license, Rissana ƶijϻ ("Rissana") in Morocco.
The formal award of the license is anticipated to occur in 2021 and is subject to the normal Moroccan regulatory procedures and approvals.
According to Chariot, 75% interest and operatorship of the Rissana license will be awarded to Chariot's subsidiary in partnership with the Office National des Hydrocarbures et des Mines ("ONHYM") which will hold a 25% interest.
Rissana, encompassing an area of around 8,476 km2 will completely surround the offshore boundaries of Chariot's existing Lixus ƶijϻ Licence - approximate area 2,390km2 - which contains the , as well as covering the most prospective northern areas of the previously held Mohammedia ƶijϻ Licence ("Mohammedia") and Kenitra ƶijϻ Licence ("Kenitra").
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Also, Mohammedia and Kenitra licenses have been relinquished by Chariot and ONHYM to allow the incorporation of prospective areas already covered by 3D seismic data into the Rissana license.
Chariot said the agreement provided material potential running room in various plays including the Mio-Pliocene gas play surrounding the Lixus license and on-trend with the Anchois gas discovery.
"Initial minimum license commitment is the acquisition of a 2D seismic survey, over a portion of the acreage, which will help to evaluate the extension and potential of these gas plays across Rissana," Chariot said.
Adonis Pouroulis, Acting CEO, said: "Whilst 2020 has been a challenging year for many, we believe that Chariot is exiting the year in a very strong position. With the anticipated formal award of the Rissana license expected in 2021, we have shown Chariot's strong commitment to both the Anchois gas project as well as to Morocco.
"I would like to personally thank ONHYM for their significant support over the year and we look forward to a highly active 2021 that will see us drive the Anchois development towards near term cashflows. We also anticipate completing Chariot's full transformation to an energy transition group with the introduction of exciting new ventures in the New Year, which we look forward to updating our investors on in due course."