4 June 2018 Chariot Oil & Gas Limited ("Chariot", the "Company"...

4 June 2018
Chariot Oil & Gas Limited
("Chariot", the "Company" or the "Group")
Operational Update
Central Blocks, Namibia
-- Ocean Rig Poseidon drill ship contracted to drill one firm and one optional well.
-- Fully funded drilling of Prospect S, offshore Namibia, in Q4 2018.
-- Prospect S has 459mmbbls gross mean prospective resource, with a further future potential upside of 2.2Bnbbls in other prospects within the Central Blocks licence in Namibia.
-- Drilling of an optional second well dependent on the outcome of Prospect S well and ongoing partnering processes.
Chariot Oil & Gas Limited (AIM: CHAR), the Atlantic margins focused oil and gas exploration company, has secured the Ocean Rig Poseidon, a sixth generation deepwater drillship to drill one firm and one optional well. Chariot, the operator of the Central Blocks licence offshore Namibia (Chariot 65%, AziNam 20%, NAMCOR 10% and Ignitus 5%) currently anticipates that the drillship will arrive on location in Q4 2018 and that the drilling of Prospect S will commence shortly thereafter.
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 km(2) of proprietary 3D seismic data on the Central Blocks with the result of the Prospect S well.
Larry Bottomley, CEO, commented:
"We are pleased to have secured the high performance Ocean Rig Poseidon drillship for the Prospect S well in Namibia. Operational plans are now well advanced for the first deepwater drilling in our Central Blocks licence in Q4 2018. We are continuing to take every advantage of the current historic low cost drilling environment as well as maximizing any further cost synergies by cooperating with other drilling operations in Namibia.
Our farm-out discussions are ongoing, strengthened by this well having already been fully funded, and we look forward to introducing new partners to share the costs and also the significant rewards of a discovery on Prospect S, and to accelerate the optional drilling on the transformational follow on potential."
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
Qualified Person Review
This release has been reviewed by Duncan Wallace, Exploration Manager of Chariot, who is a petroleum geologist with over 15 years' experience in petroleum exploration, MSc in Petroleum Geology from Imperial College and a member of the Petroleum Exploration Society of Great Britain. Mr Wallace has consented to the inclusion of the technical information in this release in the form and context in which it appears.