Chariot Oil & Gas decided Thursday to not pursue a new exploration license for the offshore Namibia block 1811A&B, calling the block too risky to warrant further investment.
Chariot said it analyzed “significant amounts” of proprietary seismic date, well data and third party drilling activity to asses the possibility for long range hydrocarbon migration to the Zamba prospect located in the block.
The studies did not reduce risk in the prospect enough to justify further investment in the license.
“Management considered it too high risk to justify further near term exploration expenditure,” Chariot said.
However, Chariot still considers the acreage to be prospective.
Although Chariot will not renew its exploration license for block 1811A&B the company will continue to develop projects in Namibia.
“Namibia continues to be a key focus for Chariot as we believe this region has the potential to be a world-class hydrocarbon province,” Chariot CEO Larry Bottomley said.
London-based Chariot was recently re-awarded licenses in central and southern Namibia that it hopes to de-risk as its work in the country continue.
The company currently holds 65 percent stakes in blocks 2312 and 2412A as well as a 85 percent stakes in blocks 2714A and 2714B. All of those blocks are operated by Namibia-based Enigma, Chariot’s wholly-owned subsidiary.