AIM-listed Chariot Oil & Gas said Monday that it notes the recent media speculation and confirms that it is in advanced stages of completing a new equity fundraising to provide funds to allow the Group to deliver a second well within the near term comprising the drilling of Prospect S in Namibia, in addition to the carried drilling of the RD-1 well in Morocco by Eni.
The Board can confirm that it is looking to raise approximately US$15.0 million by way of a conditional placing as well as an additional up to approx. €5.0 million by way of an open offer. It is expected that the Fundraising will take place at 13 pence and the Company will make an announcement with further details in due course.
Larry Bottomley, CEO of Chariot Oil & Gas, said:
‘This fundraise will represent another major step forward for Chariot, and one which allows the Company to participate in two giant-scale wells in this calendar year whilst capturing the bottom of the cost cycle for drilling. Success in either well would be transformational, and would also de-risk significant additional portfolio in the relevant licence. This comes after continued investment throughout the portfolio during the industry downturn which has allowed Chariot to build a drilling and prospect inventory of giant-scale opportunities. We will continue to progress operations in Namibia to drill Prospect S in H2 this year to benefit from synergies with third-party operations, and, in combination with our other partners, we continue to support Eni in their operations on the RD-1 well in Morocco which is scheduled to spud in March 2018.
This demonstrates that the equity markets support Chariot’s investment thesis, which is in part a testament to our performance in risk management, delivered through our excellent in-house technical team, and our continued focus on capital discipline. We look forward to welcoming new investors and are grateful for the continuing support of existing shareholders who have the opportunity to participate through the Open Offer. We appreciate both groups for supporting Chariot in a very exciting near-term drilling programme as well as for the continued development of the Company’s broader portfolio in Brazil and our other permits in Morocco.” Source: Chariot Oil