Oil and gas exploration and development company Chariot Oil and Gas Limited (LON: CHAR) saw its losses narrow due to a decline in its share based payments as it continued the developments of its ventures.
The Company booked a loss from operations of £1.898 million, contracting from £2.028 million. This was led by a fall in share based payments from US $507,000 to $355,000 year-on-year during the first half.
Additionally, Chariot Oil and Gas admin expenses stood at $1.5 million and their unaudited cash balance at 30 Junes stood at $12.1 million.
Operationally, the Group said it secured the Lixus Offshore Licence, which offers a near-term opportunity for cashflow generation. Going forwards, the Company will hope to secure partners for the appraisal and development of the Anchois gas field.
Chariot Oil and Gas comments
Larry Bottomley, CEO, stated,
“Using the information acquired from the 2018 drilling campaigns we have not only been able to de-risk and refine our giant prospect portfolio, but also identified and acquired a low risk appraisal asset with the capacity to generate significant cash flow for the Company.”
“Chariot’s risk portfolio is now balanced by a commercially attractive production opportunity, capable of sustaining the high impact exploration programmes of our giant potential prospects within the wider portfolio. Our cash position substantially exceeds our commitments and, with the significant interest received in our data rooms, we are confident about our ability to achieve on our near-term goals in Morocco. At the same time, we remain vigilant to further new venture opportunities that can further de-risk the portfolio whilst also looking to secure additional partners to deliver wells in a fast follower position on our Namibian and Brazilian assets.”
Following the update, the Company’s shares have dipped 11.17% or 0.40p, to 3.22p per share 25/09/19 15:36 BST. Peel Hunt analysts reiterated their ‘Add’ stance, while finnCap analysts reiterated their ‘Corporate’ stance on Chariot Oil and Gas stock. Neither a p/e ratio nor a dividend yield are available for the Group, their market cap is £11.83 million.
Elsewhere in oil and gas news, there have been updates from; Union Jack Oil PLC (LON: UJO), Prospex Oil and Gas PLC (LON: PXOG), IGAS Energy PLC (LON: IGAS), Trinity Exploration & Production PLC (LON: TRIN), Baron Oil PLC (LON: BOIL), Cabot Energy PLC (LON: CAB) and Reabold Resources PLC (LON: RBD).