CHAR – Commencement of Drilling Operations

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, is pleased to announce that the Ocean Rig Poseidon, a sixth generation deepwater drillship, has commenced its mobilisation with estimated arrival at the Prospect S well location in Namibia in the next 24 hours.

 Chariot, the operator of the Central Blocks licence offshore Namibia (Chariot 65%, Azinam 20%, NAMCOR 10% and Ignitus 5%) anticipates that spud will occur shortly after its arrival and that operations will take approximately 40 days.

 Prospect S, independently estimated as a gross mean prospective resource of 459mmbbls and a probability of geologic success of 29% by Netherland Sewell Associated Inc., is one of five dip-closed structural traps, totalling 1,758mmbbls gross mean prospective resources, that have been identified in the Upper Cretaceous turbidite clastic play fairway. A further two higher risk-reward stratigraphic traps, totalling 885mmbbls gross mean prospective resources, could be de-risked through the calibration of the 6,100 km2 of proprietary 3D seismic data on the Central Blocks with the result of the Prospect S well.