Chariot Oil & Gas Limited, the Atlantic margins focused oil and gas exploration company, reports that, as detailed in the announcement of 4 July 2014, the farm-out signed between its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Ltd. and a wholly owned subsidiary of Woodside, Australia's largest independent oil and gas company, has been approved for the Rabat Deep Offshore permits I-VI by the Moroccan authorities.
As part of the farm-out agreement, Woodside committed to pay 100% of the 3D seismic acquisition and processing costs incurred across the licence by Chariot, other back costs and in addition agreed to carry Chariot on future work up to an agreed cap, including a multibeam side-scan sonar and seabed coring survey. A substantial part of these funds has now been received and, as a result, Chariot now expects its cash balance as at 31 December 2014 to be approximately US$52 million. The remaining balance of these funds is anticipated to be received during Q1 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.
Chariot remains Operator of the licence with a 50% equity interest, with the Office National des Hydrocarbures et des Mines ("ONHYM") retaining a 25% carried interest and Woodside holding 25%. As part of the agreement, Woodside has an option to acquire a further 25% of Chariot's equity and become Operator of the licence in return for a full well carry up to an agreed cap consistent with other farm-outs concluded in the area.