British Firm Chariot Commences Drilling at Moroccan Onshore License

British energy company Chariot has commenced drilling operations at the Loukos Onshore license in Morocco, marking a significant milestone in its exploration efforts. Chariot, based in London, holds a 75% stake in the license, with the national hydrocarbons agency ONHYM owning the remaining 25%.

Chariot announced the start of its drilling campaign last week, with the spudding of the RZK-1 well on the Gaufrette prospect. Duncan Wallace, Chariot's Technical Director, expressed enthusiasm for the project, stating, "We are very pleased to commence this onshore campaign, marking the first of our exciting drilling operations for Chariot this year."

Wallace praised the operational team's commitment, which allowed drilling to begin within just ten months of the license award. He also thanked ONHYM for its support and partnership throughout the process.

The start of drilling operations in Morocco follows Chariot's recent partnership agreement with the Energean PLC group for the development of its assets in the North African country. Under the agreement, Energean secured 45% and 37.5% respective interests in the Lixus and Rissana offshore licenses, taking on the role of operator. Chariot retains 30% and 37.5% respective interests in these licenses, while ONHYM holds a 25% stake in each.

As part of the partnership deal, Chariot received an upfront cash consideration of $10 million from Energean. Additionally, Chariot signed a rig contract with Stena Drilling for the use of its Stena Forth drillship, which will be used for the Anchois-East appraisal and development well in northern Morocco, as well as for an optional well within the Lixus license.

The upcoming drilling and testing campaign, scheduled for the third quarter of 2024, aims to appraise existing gas sands through flow testing and to target undrilled prospective resources. This campaign could potentially increase the Anchois gas development to over 1 trillion cubic feet (Tcf), representing a significant milestone for Chariot's operations in the region.