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Chariot Oil & Gas Ltd.

02/22/2021 | Press release | Distributed by Public on 02/22/2021 01:07

Agreement with Subsea Integration Alliance

22 February 2021

Chariot Oil & Gas Limited

('Chariot', the 'Company' or the 'Group')

Collaboration Agreement with Subsea Integration Alliance

Fast-Tracking Development of Value Accretive Anchois Gas Project

Chariot Oil & Gas Limited (AIM: CHAR), the Africa focused transition energy company, is pleased to announce that it has signed a Collaboration Agreement ('Agreement') with Subsea Integration Alliance to work together to enable the front-end design, engineering, procurement, construction, installation and operation of the Anchois Gas Development project in Morocco. Subsea Integration Alliance is a nonincorporated strategic global alliance between Subsea 7 and OneSubsea®, the subsea technologies, production, and processing systems division of Schlumberger.

Chariot and Subsea Integration Alliance will adopt a 'One-team', integrated and collaborative approach to safely fast-track first gas to maximise the return oninvestment.

The scope of the Agreement covers:

· Front-end engineering support and engineering design work.

· Engineering, procurement, construction, installation, pre-commissioning and commissioning work.

· Operations and maintenance of the facilities.

· Commitment to ESG and the importance of contributing to social development through the creation of direct and indirect jobs in Morocco.

Stuart Fitzgerald, CEO, Subsea Integration Alliance commented:

'We are pleased to be starting a journey with Chariot on the exciting Anchois gas development in Morocco. We believe the Subsea Integration Alliance 'One-team' collaboration with Chariot will helpunlock the planning and execution of the developmentand uncover the true value of the project for all stakeholders.'

Adonis Pouroulis, Acting CEO, Chariot Oil & Gas Limited commented:

'This Collaboration Agreement with Subsea Integration Alliance further endorses our view that the Anchois development is a high value project. With the recent announcement on potential project finance, Chariot is clearly showing that it is delivering on what it said it would do, namely, advancing the commerciality of the Lixus asset and generating value to shareholders in the process.

We believe that 2021 will be an exciting year for the business, as we look to commence with our operational plans at Anchois and further enhance our portfolio to include other commercial opportunities along the theme of energy transition. We look forward to keepingour investors updated on progress with these initiatives over the coming months.'

Further Information About Chariot

Chariot, through its wholly owned subsidiary, Chariot Oil & Gas Holdings (Morocco) Limited, has a 75% interest and operatorship of the Lixus Offshore Licence, Morocco ('Lixus'), in partnership with ONHYM which holds a 25% interest.

The Lixus licence, which is on the Atlantic coast of Morocco, just south of Spain, contains the significant Anchois gas discovery with audited total remaining recoverable resource (2C & 2U) of in excess of 1 Tcf. The sampled gas is 97% methane, without impurities, and is held in high quality porous and permeable sandstone reservoirs.

The development plan from a Pre-FEED study consists of two subsea wells tied into a subsea manifold with a 40km offshore flowline connected to an onshore gas processing facility, from which a short 40km pipeline connects to the trunk pipeline to Europe allowing access not only to the growing Moroccan energy market but also to the European gas market.

In Q4 2020 Expression of Interest Letters to debt finance the development were received from the African Finance Corporation ('AFC'), a pan-African Multilateral Development Financial Institution with over US$6 billion in assets, and a major Multinational Investment Bank.

In December 2020, the key terms of a new Moroccan licence were negotiated which is approximately 3.5 times the area of the Lixus licence. The Rissana Offshore licence completely surrounds the offshore boundaries of the Lixus licence providing material potential running room in various gas plays on-trend with the Anchois gas discovery.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

For further information please contact:

Chariot Oil & Gas Limited

Adonis Pouroulis, Acting CEO

Julian Maurice-Williams, CFO

+44 (0)20 7318 0450

finnCap(Nominated Adviser and Broker)

Christopher Raggett (Corporate Finance)

Andrew Burdis (ECM)

+44 (0)20 7220 0500

Celicourt Communications(Financial PR)

Mark Antelme

Jimmy Lea

+44 (0)20 8434 2754

NOTES TO EDITORS

Chariot Oil & Gas Limited is an African focused transition energy company which holds a high value, low risk gas development project with strong ESG credentials in a fast-growing emerging economy with a clear route to early monetisation, delivery of free cashflow and material exploration upside. The ordinary shares of Chariot Oil & Gas Limited are admitted to trading on the AIM Market of the London Stock Exchange under the symbol 'CHAR'.