Chariot Oil & Gas reports discouraging drill results

AIM-listed Chariot Oil & Gas has reported that the offshore Namibia-based Prospect S exploration well did not encounter a hydrocarbon accumulation.

The well, which was operated by Chariot and drilled by the Ocean Rig Poseidon drillship, will be plugged and abandoned.

“While very disappointing that we have not established a hydrocarbon accumulation in the prospect, we have learnt valuable information about the reservoir potential of these turbidite systems, which form the primary targets across many of the prospects within the Central Blocks portfolio,” CEO Larry Bottomley said in a statement.

The well penetrated the anticipated turbidite reservoir sands but reservoirs were water-bearing.

Data from the well, which was safely drilled to a total measured depth of 4,165m, will be used to allow the company to understand the implications for the prospectivity of the surrounding area.

The company initially anticipated that spud would occur shortly after drilling and that operations would take approximately 40 days.

“The company is fully-funded to progress our assets in Morocco and Brazil, while remaining vigilant to other value accretive opportunities.”