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Chariot Oil & Gas losses deepen on Brazil, Namibia exploration writedown

By BFN News | 02:08 PM | Tuesday 29 September, 2020

Oil company Chariot Oil & Gas posted a deeper first-half loss after it wrote down the value of exploration assets in Brazil and Namibia. Pre-tax losses for the six months through June amounted to $68.8 million, compared to losses of $1.9 million year-on-year, and included a $67.7 million exploration impairment. 'In light of the challenging business environment which has been further compounded by the impact of Covid-19, exploration in both Namibia and Brazil has been assessed as non-core,' the company said. It added that any potential future value of the assets would be derived from drilling of offset wells by third parties nearby, which were anticipated to start drilling in in 2020-2021. Chariot Oil & Gas was currently focused on the Anchois development in the Lixus license area offshore Morocco. 'The recent strides forward made in sub-surface description of Lixus with the completion of the 3D PSDM seismic reprocessing and independently audited resource upgrades have elevated this project to a materiality that is grabbing the attention of the industry and wider market,' acting chief executive Adonis Pouroulis said. 'In addition to the active farm-out process, discussions being held with gas off-takers are encouraging.' 'The discussions held with institutional lenders have underlined the quality of the asset and development opportunity and we now look ahead to the next steps in our objective to secure project finance.' At 2:08pm: (LON:CHAR) Chariot Oil Gas Ltd share price was +0.24p at 3.74p Story provided by

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