ZOL – Operations Update

Zoltav (AIM: ZOL), the Russia-focused oil and gas exploration and production company, is pleased to provide an update on strategy and operations at the Bortovoy Licence, Saratov.

Western Gas Plant

The Western Gas Plant continued to be operated efficiently throughout 2018 with only one, scheduled, 48-hour maintenance shutdown. Average net daily production (sold to customers) through the Western Gas Plant in 2018 was 33 mmcf/d (0.94 mmcm/d) of gas (2017: 40.4 mmcf/d or 1.15 mmcm/d) and 301 bbls/d (38 t/d) of oil and condensate (2017: 337 bbls/d or 43 t/d). The natural production decline from existing well stock continued at a slower rate than predicted, primarily due to Zhdanovskoye Well 8 remaining on production throughout 2018 and the well head compressor having been put into operation on the Karpenskoye field.

In line with its strategy to reverse production decline, management has approved the drilling of the first two sidetracks on existing well stock (each with a 500 m horizontal ending) on the Zhdanovskoye field. A rig tendering process is at an advanced stage, with the first well (Zhdanovskoye Well 103) anticipated to be spud in Q2 2019. Both wells are expected to be put on production before year-end, adding an estimated 11 mmcf/d (0.3mmcm/d) of gas and a 3% increase to daily condensate production. Further wells, on the Zhdanovskoye and Karpenskoye fields, are slated for approval.

Exploration Programme

Interpretation of the 341 sq km of 3D seismic data acquired in 2017-2018 over the Carbonian and Devonian (and also prospective Permian) structures in the Mokrousovskoye block has identified a prospective gas field in the Devonian structure and a prospective gas field in the Permian structure; both of which will require exploratory drilling. Management’s estimates of prospective resources within the identified fields is subject to ongoing work and will be communicated in due course.    

In light of the ongoing review of the full range of commercial opportunities on the Bortovoy Licence, the geotechnical team, led by Yuri Krasnevsky, Director for Geology and Field Development, has concluded that the Company should focus in the near-term on commercialising existing low risk reserves (under the Russian classification system) in both the western and eastern fields of the Bortovoy Licence, before proceeding with further exploratory drilling on the new prospective fields. The final results of the 3D seismic interpretation will be included in the mid- to long -term exploration programme, which is under development and will be communicated in due course.

East Bortovoy

Progress continues to be made towards commercialising the substantial reserves in the eastern fields of the Bortovoy Licence. Approximately 70% of the Bortovoy Licence 2P gas reserves of 750 bcf (21.2 bcm) (based on the 2014 CPR) are concentrated in the eastern fields of the licence. Producing these existing reserves (before taking into account the potential upside of further exploration activities) would utilise Western Gas Plant capacity for up to 15 years. The preferred development scenario envisages the construction of a gas pipeline from the Western Gas Plant, connecting the western Mokrousovskoye field, followed by the eastern Pavlovskoye, Lipovskoye, and ultimately the easternmost, substantial, Nepryakhinskoye, fields.

Approximately RUB 150 million (USD 2.5 million) has been budgeted to re-enter and evaluate production rates, gas composition and well conditions of existing Soviet wells on the Pavlovskoye, Lipovskoye and Nepryakhinskoye fields. Data acquired will contribute to the technical and economic feasibility study required to address uncertainties (including cost, pipeline corridor and parameters, and Western Gas Plant capacity extension) before making a final investment decision. To date, the Company has re-entered one well on the Pavlovskoye field and four wells on the Lipovskoye field. All wells tested in line with or better than management expectations based on Soviet flow rate data. The re-entry programme is anticipated to be completed by the end of May 2019 and the Company intends to update on the progress of the technical and feasibility study prior to the end of July 2019.

Tigran Tagvoryan, Chief Executive Officer of Zoltav, commented:

“I am pleased that previous exploration activities carried out over the Mokrous area confirm the further exploration potential of the Bortovoy Licence. These, and other opportunities for additional assets, will form part of our mid- to long -term exploration strategy. However, my near-term focus is on bringing current reserves into production with the lowest possible risk, while preserving opportunities for exploration upside in due course. This development strategy naturally focuses on the east of the licence which accounts for 70% of the substantial 2P gas reserves. Initial results from well re-entries are encouraging and are contributing to the detailed feasibility analysis that is ongoing. I look forward to updating shareholders on this progress later this year.

In the meantime, we are poised to drill the first two sidetracks on existing well stock in the western fields as part of the strategy to increase production from these fields. Both wells are anticipated to be on production by year-end.”

TRP – Completion of Bridging Loan and Issue of Warrants

Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM listed oil and gas company with its focus on Africa, is pleased to announce that, further to the Company’s announcement earlier today outlining the proposed interim financing, the Company has successfully agreed a Bridging Loan Facility (“Bridging Loan”) of US$750,000 with a single lender. The terms of the Bridging Loan include the issue of 90 million of attached five-year 1.0 pence warrants.

As previously disclosed, the purpose of the Bridging Loan is to cover working capital while the Company seeks to finalise funding arrangements for the drilling of the NJOM3 well on the Thali licence in late May 2019.  

Bridging Loan Facility and Issue of Warrants

The Company has agreed a short term senior secured funding facility of US$750,000 with Pegasus Petroleum Ltd, a company beneficially owned by the Company’s Chairman Jeremy Asher.  The material terms of the facility comprise fees of 2%, interest of 1% per month accrued and paid on repayment, a fixed and floating charge over the Company’s assets, and the issue of 90 million 5-year warrants priced at 1.0 pence per share (“Warrants”), which is a premium of 38% over the Company’s closing mid-market share price on 15 April 2019. The Bridging Loan will be due for repayment on or before 30 June 2019 and will have a preferential right of repayment from any future financing secured by the Company.

The issue of Warrants has been summarised in the table below.


Number of Warrants being issued

Total number of Warrants held including this issue*

Shareholding upon exercise of total number of Warrants held

% of issued share capital upon exercise of Warrants

Jeremy Asher





Peter Taylor




Graeme Thomson




*Warrants are held at different prices

Warrants issued to Pegasus Petroleum Ltd; a company beneficially owned by Jeremy Asher

‡Excludes share options

Related Party Transaction

Jeremy Asher, as a director of the Company, and Pegasus Petroleum Ltd, are considered to be “related parties” as defined under the AIM Rules and accordingly, the Bridging Loan constitutes a related party transaction for the purposes of Rule 13 of the AIM Rules.

The Directors independent of the Bridging Loan, being Peter Taylor, Graeme Thomson and David M Thomas, consider, having consulted with SP Angel Corporate Finance LLP, the Company’s nominated adviser, that the terms of the Bridging Loan are fair and reasonable insofar as the Company’s shareholders are concerned.

Peter Taylor, Non-Executive Director, commented:

“This funding facility provides additional working capital which we need to complete the well financing process. Our Chairman’s participation reflects his continuing confidence in the Company and in our Cameroon project.”

TRP – Cameroon Operational Update, Proposed Bridging Loan

Tower Resources plc (the “Company” or “Tower” (TRP.L, TRP LN)), the AIM-listed oil and gas company with a focus on Africa, is pleased to provide an update on operations on the Thali block in Cameroon, financing and its intention to raise interim finance via a Bridging Loan Facility (“Bridging Loan”).

Cameroon Update

Tower is in the final stages of planning the NJOM3 well, which will be drilled to a total depth of 1,100 metres intersecting at least three reservoir zones already identified by the NJOM1B and NJOM2 discovery wells drilled on the Njonji structure by the previous operator Total. The well is designed to confirm the greater reservoir thicknesses observed on the reprocessed 3D seismic in the up-dip area of the structure and also evaluate additional reservoirs that were not present in the areas where Total’s wells are located.  The NJOM3 well is designed to supplement Total’s well data with a suite of measurement and logging tools and drill stem test (“DST”) flows to surface. The Company’s intention is then to suspend the well with a view to subsequent completion as one of four initial production wells on the structure, as envisaged in the Reserve Report prepared by Oilfield International Limited (“OIL”) on 31 October 2018. This first phase of development envisaged by the Reserve Report, aiming to exploit the 2C contingent resources (Pmean 18 million barrels oil, gross) already identified in the structure, aims to provide significant production to Tower in 2020.

Since the Company’s last update, the following operational progress has been made:

·    The Topaz Driller, the Vantage rig which Tower has contracted to drill the NJOM3 well, is currently expecting to complete operations for its current charterer in Gabon in mid-May, which should make it possible to spud the NJOM3 well in the last week in May 2019;

·    The final location of the NJOM3 well has been agreed with Société Nationale des Hydrocarbures (“SNH”);

·    A full drilling team is now in place and operating from the Company’s offices in Douala and the AMT logistics base there;

·    All long lead items have now been acquired and all services contracted on the basis of a late-May spud date, though this date is still subject to slippage depending on the operations of the current charterer of the Topaz Driller;

·    A debris survey and other site preparation work are underway; and

·    Anticipated cost of the well remains in previously disclosed ranges of around $10 million dry hole cost and around $14 million including well planning and testing.

As previously disclosed, the Company is planning to use a combination of bank financing and own or partner equity to fund the first phase of development at Njonji, including the proposed NJOM3 well. The Company has for several months been discussing a loan facility with a prominent African bank, for the Njonji development of US$15 million which could be extended to US$50 million, and the Company is still hopeful that such a facility may be in place by mid-May. With or without such a facility, the Company has also been holding discussions with several possible partners for the Thali license, which the Company also hopes may be concluded in that time frame. Any one of these options, or a combination of them, could provide the additional funds required to complete the current well.

Proposed Bridging Loan Facility

In the meantime, the Company requires additional working capital whilst the above discussions are completed and today announces its intention to raise short term financing of up to US$750,000 via a Bridging Loan from a funder on terms to be confirmed including the expected issue of warrants to the lender.

A further announcement is expected to be made shortly in connection with the Bridging Loan.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

MATD – Rig Contract Awards

Petro Matad Limited (AIM: MATD), the AIM-quoted Mongolian oil explorer, is pleased to announce that it has signed contracts for two rigs for its upcoming 2019 four well drilling programme.


·      Four well fully-funded programme remains on track for completion in 2019

·      Two rig contracts signed and both rigs in close proximity to Block XX

·      Heron 1 and Red Deer 1 wells expected to spud in July

·      Spudding of Gazelle 1 will follow completion of drilling at Heron 1

·      Rig contracts allow for possibility of immediate appraisal of any discovery

Rig contracts signed

The Company has contracted DQE International, Mongolia’s most experienced and active drilling operator, for its Rig 40105, to drill the Heron 1 and Gazelle 1 wells in the north of Block XX. The contract gives the Company the option to drill an additional well to allow for immediate appraisal of any discovery made during the 2019 drilling programme. Any discovery will be tested using a separate workover rig. The rig was drilling in neighbouring Block XIX up until the end of the last drilling season, so mobilisation will be short and logistically straightforward.  

The second contract is with Daton Petroleum Engineering and Oilfield Service LLC, for their Rig DXZ1, to drill the Red Deer 1 well in the south of Block XX. The contract gives Petro Matad the option to drill a second well, to either appraise any discovery made in Red Deer 1 or for drilling in Block V in western Mongolia. Any testing operations will be performed by a separate workover rig. Daton’s rig was working until the end of 2018 and is currently located approximately 125km east of the Red Deer location, so mobilisation to Block XX will be relatively short.

Updated drilling schedule

The Company expects to spud Heron 1 in early July. The spud date has been moved back to allow for certain electrical and safety modifications to the rig ahead of drilling.

Heron 1 will be drilled to a planned total depth (TD) of 3,050m and will take approximately 40 days to drill and log. On completion of operations at Heron, the rig will immediately move to the Gazelle 1 location. Gazelle 1 will take approximately 35 days to drill and log. The planned TD is 2,500m.

Red Deer 1 is expected to spud in July and is forecast to take 35 days to drill and log. The planned TD of the well is 2,100m. On completion of drilling and depending on the success of the well, the Company will then take the decision to either drill a further well at Red Deer; move the rig to drill a well in Block V; or focus on activities in the north of Block XX.

Running two rigs, with a separate workover rig for any testing operations, gives the Company sufficient time to complete its 2019 four well drilling campaign before the winter operational shutdown late in Q4.

Block XX drilling targets

Heron Prospect

The Company has recently secured access to a high-quality 3D seismic data set which covers the northern part of Block XX. This data, along with recently reprocessed 2D seismic data, clearly shows the Heron Prospect to be a southerly extension of the proven oil-bearing structure drilled by the T19-46-3 discovery well in Block XIX. The latest mapping shows the majority of the structure, including the crest of the trap, lying in Block XX. The Heron Prospect is estimated to have mean recoverable prospective resource potential of 25 MMbo. Heron 1 will be located 1.1km south of the T19-46-3 oil well and is prognosed to encounter the top of the primary reservoir targets at approximately 2800m.

Gazelle Prospect

The Gazelle Prospect is located on the south-western flank of the Tamsag Basin, which is the primary source kitchen charging the Block XIX discoveries. The Gazelle 1 well will be drilled 5km west of Heron 1 and 4.5km southwest of the T19-46-1 oil well. The mean prospective recoverable resource assessment for the Gazelle Prospect is 13 MMbo.

Red Deer Prospect

The Red Deer 1 well will target a basin centre, fault bounded, structural closure in the southern part of Block XX. The mean prospective recoverable resource assessment for the Red Deer Prospect is 48 MMbo.

Mike Buck, the CEO of Petro Matad said:

“We are pleased to announce the signing of the two rig contracts which marks a major milestone for the four well drilling programme scheduled for 2019. The contracts secured allow for simultaneous drilling of prospects and immediate appraisal in the event of a discovery which could be transformational for the company. It is an exciting year ahead for Petro Matad and we look forward to working with our contractors to deliver value for our shareholders.” 

EOG – Interim Results

Europa Oil & Gas (Holdings) plc, the AIM traded Ireland and UK focused oil and gas exploration, development and production company, announces its interim results for the six month period ended 31 January 2019.

Operational highlights

  • Ongoing negotiations regarding farm-in agreements to three Irish licences (LO 16/20, FEL 1/17 and FEL 3/13) with a major international oil company:
    • expect Europa to be fully carried on a well on each licence
    • expect Europa to retain a material interest in each licence
    • the Board is confident of concluding the farm-ins in the coming months however, there can be no guarantee that the current negotiations will lead to completed agreements
    • final investment decision awaited from the major’s head office
  • Site surveys for wells at Inishkea, Kiely East and Edgeworth – targeting summer 2019, are under application subject to regulatory approval
  • Successfully executing strategy to manage the decline in production at onshore UK fields
    • workover of the WF6 well at West Firsby utilising a drain hole jetting technique – WF6 is currently producing 6 boepd net to Europa having previously produced zero oil
    • 90 boepd produced in H1 2019 (H1 2018 97 boepd)
  • Final phase of discussions with the National Office of Hydrocarbons and Mines (“ONHYM”), in respect of securing a petroleum agreement in Morocco

Financial performance

  • Revenue £0.9 million (H1 2018: £0.8 million)
  • Pre-tax loss of £0.4 million, (H1 2018: pre-tax tax loss of £0.5 million)
  • Net cash used in operating activities £0.3 million (H1 2018: cash from operating activities £16k)
  • Cash balance at 31 January 2019: £4.4 million (31 July 2018: £1.8 million)
  • Successfully raised £4.3 million (before expenses) from existing and new shareholders including BGF Investment Management Limited, a wholly owned subsidiary of the Business Growth Fund (“BGF”)
    • approximately 33% of the shares in the Company now owned by institutions,
    • a further 9.5% are held by the Board

Post reporting period events

  • Wressle planning appeal submitted to Planning Inspectorate on 5 February 2019 and draft bespoke programme issued by the Inspectorate on 13 February
  • Gross un-risked prospective resources at the Inishkea gas prospect in LO 16/20 confirmed as 1.5 tcf with one in three chance of success (RNS 26 February 2019)
  • Transferred operatorship of PEDL143 to UK Oil & Gas PLC as announced on 14 March 2019

Europa’s CEO, Hugh Mackay, said: “The last six months have been a highly active period for Europa, not just in terms of the progress we are making to advance our industry-leading licence position offshore Ireland, which to date has estimated gross prospective resources of 6.4 billion barrels of oil and 1.5 tcf of gas and where negotiations are ongoing for a farm-in for three licences with a major international oil and gas company. In addition, we completed a £4.3 million fund raising, which increased the institutional representation on our shareholder register to over one third. We also restored production at the WF6 well at West Firsby and moved closer towards landing a high impact new venture in Morocco.

“The momentum behind the Company has continued post period end with the completion of a major piece of exploration work at our flagship Inishkea gas project. I look forward to providing further updates on our progress during the second half, a period which will see the resumption of drilling activity in the South Porcupine Basin at CNOOC International’s Iolar prospect.  Success here would be a value trigger event for Europa, as it would significantly de-risk our drill-ready prospects in the basin, specifically, the 280mmboe Kiely East and 225mmboe Edgeworth targets.”

ROSE – Issue of equity, Board Changes and appointment of Joint Broker and Adviser

Further to its recent announcement on 28 March 2019, Rose Petroleum plc (AIM: ROSE), the AIM-quoted natural resources business, provides a further update on the Company’s funding plan and Board composition.


·     £275,000 raised, before expenses, through a direct subscription with the Company for 25,000,000 ordinary shares in the Company (the “Fundraise”);

·     Robert Bensh, an experienced Chairman with extensive experience of onshore US oil & gas, has joined the Board in the capacity of Executive Chairman and to support the Company has subscribed for all of the Fundraise shares;

·     Tom Reynolds will also join the Board, as Non-Executive Director; and

·     David Sefton and James Berwick will no longer be joining the Board.


Rose has raised £275,000, before expenses, via a subscription by Robert Bensh for 25,000,000 new ordinary shares (the “New Ordinary Shares”) at a price of 1.1 pence per share. The New Ordinary Shares have been issued using the Company’s existing share authorities and will rank pari-passuwith the existing ordinary shares of 0.1p each in the Company (“Ordinary Shares”). 

The proceeds of the Fundraise will be used for general corporate purposes including the appraisal of identified investment opportunities within the Company’s current portfolio of business development projects.

Settlement of the Fundraise is expected to take place in the next two weeks.  Once the funds have been received by the Company, application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM (“Admission”). A further announcement will be made at the appropriate time.

Following Admission, Robert Bensh will have an interest in 25,000,000 Ordinary Shares, equivalent to 14.84% of the Company’s enlarged issued share capital.

The Board of the Company has been notified that it is the intention of certain Directors and Management of the Company to place orders to purchase in aggregate £75,000 worth of Ordinary Shares of the Company in the open market. 

Directorate changes

On 28 March 2019, the Company announced that David Sefton and James Berwick had agreed to join the Board following being proposed by a group of shareholders. The Company has subsequently been informed by Mr Sefton and Mr Berwick that they are no longer seeking to join the Board.

As a result, the Company has continued to implement its plan to strengthen the Board through the appointment of new directors and is pleased to announce the appointment of Robert Bensh to the Board as Executive Chairman, with immediate effect. In addition, Tom Reynolds will also join the Board as a Non-Executive Director, subject to completion of the regulatory due diligence process.

Robert Bensh is an international energy executive with over 20 years of senior management and board level experience. Mr Bensh has significant capital markets experience both in London and North America and is based in the US. His experience will assist Rose as it develops its existing assets and looks at complementary opportunities.

Amongst other senior executive roles previously held, Mr Bensh led and financed Oklahoma-based Condor Exploration, transforming it into a 1,000 boepd, 14 MMboe of reserves and US$145million of PV oil and gas operation in just two and half years.  He has previously worked in Ukraine and Eastern Europe, as well as South America and in the Mid-continent United States shale plays.   Prior to this, he was Chairman and CEO of NCNRG, a Mississippi Lime and Hunton focused business that grew from 50,000 acres and 3 employees to 5,000 bopd of production before its sale to private equity investors. Before this he was again Chairman and CEO of AIM traded Cardinal Resources plc, an independent oil and gas company with operations in Ukraine, before its sale for US$72million in 2007.

Mr Reynolds has been working with the Company for the past six months on a consultancy basis and has a detailed knowledge of the Group’s operations.  He is a Chartered Engineer with over 25 years’ experience in the energy sector, including a range of technical and commercial roles with BP plc, Total SA and British Nuclear Fuels plc. He has also held management positions at private equity investment and advisory firms, including 3i plc, and specialises in strategic planning, investment management and cross-border M&A transaction execution in the oil, gas, energy and infrastructure sectors.

Mr Reynolds has held board seats on various companies listed in London, Oslo and Toronto. He is a non-executive director of AIM listed Solo Oil plc. He was previously CEO of Iona Energy Inc. and, immediately prior to that, he was CEO of Bridge Energy ASA, which Mr Reynolds grew through a series of acquisitions before listing the group in both Oslo and London, prior to its c.US$150m sale to HitechVision-backed Spike Exploration Holding AS in 2013.

The Company has previously notified of Philip Jeffcock and Kelly Scott’s intentions to step down from the Board.  Philip Jeffcock has now stepped down from the Board with immediate effect and Kelly Scott will step down upon the appointment of Mr Reynolds to the Board. Following this, Kelly Scott will continue in his executive role with the Company in a non-Board capacity. The Board is extremely grateful to both of them for their work during this challenging period.

Additional appointments to the Board are being considered, both executive and non-executive, and the Company will make further announcements at the appropriate time.


Rose continues to engage with prospective farm-in partners for its Gunnison Valley property in Utah, USA, as well as screening other opportunities which offer a route to establishing cash generative production in the near term. With interim funding now in place and with the assistance of the new Board members and advisers, the Company will continue to work on identifying the optimal path to deliver shareholder value and will provide an update to shareholders in due course.

The Company has, amongst others, identified one such potential project in Texas, USA, which it believes could offer the potential for rapid production. The project is to drill a side track well off an existing vertical well with relatively low drilling costs. Rose has engaged an independent petroleum engineer to assess the project and the associated risks. The Directors believe the project could produce at an Initial Production rate of 350bopd, which would imply payback within approximately six months. The Company has developed an excellent working arrangement with the owner/operator who has access to a number of other similar projects which have the potential to act as a pipeline of projects for the Company to build production in the near-term. For the avoidance of doubt the Company does not currently have a binding agreement over this project.

Total Voting Rights

The Fundraise is conditional, among other things, upon Admission becoming effective. Following Admission, the issued share capital of the Company will comprise 168,413,940 Ordinary Shares with one voting right per share.

The Company does not hold any shares in treasury. Therefore, following Admission, the total number of Ordinary Shares and voting rights in the Company will be 168,413,940. The above figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.

Appointment of Joint Broker and Adviser

The Company is pleased to announce that it has appointed Novum Securities as Joint Broker with immediate effect. Turner Pope Investments and Cantor Fitzgerald Europe will remain as Co-Brokers.

The Company is pleased to announce it has appointed Gneiss Energy Limited (“Gneiss”) as its commercial and strategic advisor. Gneiss is a specialist corporate advisory boutique with extensive energy sector M&A experience.  Gneiss has been appointed to assist the Board with the Company’s existing asset portfolio alongside delivering a sustainable and growth focused asset operation.

Regulatory Disclosures

Further information on Robert Bensh as required to be disclosed in accordance with Schedule 2 (g) of the AIM Rules for Companies:

Robert (“Rob”) Joseph Bensh (formerly Robert Joseph), aged 51, is or has been a director of the following companies or partnerships in the past five years: 

Current directorships/partnerships

Past directorships/partnerships

(within the past 5 years)

·      44 Bensh Media Holdings LLC

·      Red Bensh Fork Energy LLC

·      Altore Inc

·      Benes Advisors LLC

·      Pelicourt Limited

·      Chama Energy Inc

·      Leadville Resources Partners LLC

·      Kub-Gaz LLC (also known as Kub-Gas LLC)

·      Gastek LLC

·      Taurex Resources Plc (formerly known as Cardinal Resources Plc)*

·      TV2U International Limited (formerly known as Cossack Energy Limited)

·      Westeros Holdings Ltd


* Mr Bensh was appointed a director of Cardinal Resources Plc (later renamed Taurex Resources Plc) on 19 February 2004. On 27 October 2009 petition was filed and on 1 February 2010 winding up of the company commenced. The company was in compulsory liquidation until 15 January 2015 and it was subsequently dissolved on 23 April 2015.

Matthew Idiens, CEO, Rose Petroleum plc, said: “I am delighted to welcome Rob Bensh as Executive Chairman and believe that his outstanding regional and operational expertise will be of great value to Rose as we look to optimise our portfolio and unlock additional opportunities in the upcoming months.

“Tom has been working with Rose on a consulting basis for the past six months and I am pleased he has agreed to join the Board to extend the capacity in which he can assist. I would also like to take this opportunity to thank Philip and Kelly for their service to Rose and wish each well for future endeavours.

CHAR – 2018 Final Results

Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas company, today announces its audited final results for the year ended 31 December 2018.

2018 and Post Period Highlights

Creating a Balanced Portfolio and Sustainable Business:

New Venture, Lixus licence, containing Anchois-1 discovery, secured in Morocco

·      Anchois-1 well gas discovery – 307 Bcf of 2C contingent resources offering near-term development opportunity

·      Deeper potential not penetrated by the Anchois-1 well of 116 Bcf 2U prospective resource has also been identified

·    Material tie-back opportunities from low risk, exploration prospects offer an attractive upside of 527 Bcf of 2U prospective resources in satellite prospects adjacent to the Anchois discovery

·      Additional on-block exploration running room in licence

·      World-class commercial contract terms with high gas prices in a developing market with growing energy demand offers a potentially high-value project

·      Minimal initial licence commitment funded from current cash

·      Future development anticipated to deliver strong returns and significant cash flow

Operational Flexibility achieved through Capital Discipline:

·      Debt free with a cash balance of US$19.8 million as at 31 December 2018

·      Fully funded for current work commitments – less than US$1.0 million

·      Annual cash overhead remains below US$5.0 million

·      Strong cash position enhanced by Q1 2018 placing and open offer of net US$16.5 million providing funds to allow the Company to deliver Prospect S at the bottom of the cost cycle

Delivery of Drilling Programme at Optimum Point of Cost Cycle:

·      Achieved Zero Cost Drilling: Rabat Deep 1, Morocco – Dry: Successful partnering meant drilling was achieved at zero cost to Chariot. Information from the well provides valuable insight into the prospectivity of the Company’s remaining licences and the newly awarded Lixus licence

·     Demonstrated Chariot’s Operational Capability: Prospect S, Namibia – Dry: The well is anticipated to be the lowest cost deepwater well of 2018, with a gross cost of c. US$16 million, significantly under budget and operated with no incidents. Analysis of results ongoing

De-Risking of the Broader Portfolio:

Rabat Deep 1 well analysis, Morocco:

·      Primary Jurassic carbonate was tight with oil shows

·      Geochemical analysis indicates a hydrocarbon charge from Cretaceous or younger source rock, with the Cretaceous known as a world class source rock – this has led to a new prospect inventory in Mohammedia and Kenitra, and the acquisition of the Lixus licence

·      Excellent quality upper Jurassic sandstone reservoirs and effective seal significantly de-risk the Clastic prospects and leads in Mohammedia and Kenitra with prospect MOH-B (gross mean prospective resource of 637mmbbls) and KEN-A (gross mean prospective resource of 445mmbbls) priority targets

Prospect S drilling, Namibia:

·      Cretaceous targets were water bearing. Results expected to degrade the risk profile of prospects T, U and D, but that of V and W remain unaffected

·      Calibration of well results with proprietary 2D and 3D data as well as information from nearby wells ongoing

Drill-Ready Prospect Inventory, Brazil:

·      Integrated seismic interpretation and CPR completed with a large four-way dip-closed structure identified and a portfolio consisting of seven reservoir targets individually ranging up to 366mmbbls of gross mean prospective resource

·      A single vertical well located at Prospect 1 can penetrate the TP-1, TP-3 and KP-3 stacked targets which have a summed on-licence gross mean prospective resource of 911mmbbls


·      Board strengthened with the appointment of Chris Zeal (Q3 2018) as Independent Non-Executive Director. Chris’ depth of knowledge in corporate finance is anticipated to provide valuable contributions to the decision making and strategic planning process 

2019 Strategic Focus:

·      Develop gas market opportunities and identify strategic alliances for Lixus appraisal programme

·      Continue partnering processes in Brazil and Morocco to progress drilling of giant prospects in exploration assets

·      Apply technical expertise to calibrate well results with regional knowledge and proprietary 2D and 3D data across the Namibian and Moroccan assets

·      Maintain Capital Discipline in all areas of business

·      Remain vigilant of additional value accretive new venture opportunities that will continue to balance the risk profile of the Company

Larry Bottomley, Chief Executive Officer of Chariot, commented:

“Chariot has had an exciting start to 2019 with the recent award of the Lixus licence offshore Morocco. The addition of discovered resources rebalances the portfolio providing a near-term development opportunity, low risk exploration upside and ultimately a sustainable footing to continue to pursue our high impact exploration portfolio. We will be looking to source strategic partners to develop the Anchois-1 gas discovery.

Chariot’s 2018 drilling programme, whilst disappointing in not delivering a giant discovery, did demonstrate Chariot’s ability to attract quality industry partners and enhance its reputation for operational efficiency, safety and effectiveness. These wells take the Company another step further in maturing and de-risking the areas in which it operates at no to low cost.

We remain committed to progressing our high impact exploration programme. The analysis of the Namibian drilling results is ongoing and we are excited by the implications of the Rabat Deep 1 well in Morocco, which has led to a new portfolio of prospects charged by world class source rock and de-risked the Clastic priority prospects MOH-B and Ken-A in Mohammedia and Kenitra. This, alongside our independently audited Brazilian prospect inventory will be the focus of our partnering process in the year ahead.

The shift in balance of risk and reward with the addition of the Lixus licence fulfils the Company’s goal of seeking an opportunity to generate cash flow. We now have a diversified inventory of giant, high margin, high risk prospects complemented by a high value, low risk, low cost gas appraisal project in an emerging gas market supported by a growing energy demand. With our exceptional team, supported by an enhanced board and strong balance sheet, we believe that the year ahead offers exciting opportunity for progressing all areas of the Company’s portfolio.”