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2 bits of farm out news today, one with BP and the other with PGS :


BP = http://www.investegate.co.uk/Article.aspx?id=201108080700088903L

PGS = http://www.investegate.co.uk/Article.aspx?id=201108080700088868L


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So with BP paying for the first well on that block, and also paying for back costs, and wtih PGS paying for a large lump of the seismic work on the other block then CHAR have just saved a lot of their cash.

Meaning any dilution for fund raising (further) is some way away now.

More news on farm outs to come and drilling to start in not too many months time.

From Northland Capital Partners Ltd

OIL & GAS: CHARIOT OIL AND GAS (CHAR.L); 124P/224 NO REC

UPDATE FROM MANAGEMENT FOLLOWING BP FARM-OUT

n We have spoken to management following yesterdays announcement that BP will conditionally acquire a 50% share of Chariot's equity interest in Southern Block 2714A (Licence 20), of which Petrobras has a 50% stake, leaving Chariot with a net 25%.

n The Southern well is likely to cost in the region of $60m, so the company has effectively offset $30m of exposure and gained around $20m in back costs a strong deal.

n There is potentially further news to come on the Northern block where drilling is planned for this November (est. cost $65m), though this is dependent on rig options with two working and one new build under consideration.

n The company has the funds to go it alone so is not beholden on a farm out but remains in active discussions so it will be interesting to see developments.

n A farm out is likely to be similar to the BP deal, although of course Chariot would farm down from a 100% stake, so it would more likely result in a 50/50 JV, with potentially a free carry over one well.



Northland UK view: The BP farm-out looks a very strong deal offsetting a significant capital exposure and maintaining a healthy interest in the Southern blocks. Having spoken to management, it is encouraging that the company will press ahead regardless of whether or not a further farm-out on the Northern block is achieved. As stated the BP farm out will release funds for further exploration so the company is in a strong position to go it alone on the Northern blocks if necessary, which also means that a farm out, if secured, is likely to be on favourable terms.

Chariot finally does the deal
Created: 9 August 2011Written by: Martin Li
What's new:

■ BP farms in to the southern block

■ Petroleum Geo Services farms into the central blocks

■ On target to drill this year

Chariot Oil & Gas has revealed BP as its long-awaited second major partner for its huge exploration prospects offshore of Namibia. BP will earn 50 per cent of Chariot's equity in the southern block - currently shared on a fifty-fifty basis with Petrobras - in return for paying Chariot's past costs and share of costs of drilling a first well.

The news was keenly awaited and positively received by sector analysts, who see BP's interest as adding further endorsement to acreage that already boasts Petrobras as a partner. Petrobras will retain its 50 per cent interest and assumes operatorship.

Following the deal, Chariot will be in partnership with two of the world's foremost deepwater exploration experts. Furthermore, BP should be as keen as Chariot to advance the project, which could see the massive Nimrod prospect, estimated at 4.5bn barrels, drilled by the first half of 2012.

UBS says...

Buy. BP has farmed into Chariots southern block containing the 4.5bn-barrel Nimrod prospect. This confirmation of the potential of Chariots southern acreage, first by Petrobras and now by BP, is a very positive signal. The majors evidently believe that Namibia could be a significant oil province, and that Chariots acreage is one of the best routes to test this potential. Our net asset value comprises 46p for financial items and 602p of risked exploration. We set our price target, of 510p, at a 20 per cent discount for country risk and the risks inherent in a stock with limited downside protection in the event of drilling a dry hole.

Collins Stewart says

Buy. Chariot has attracted the interest of two of the world's most experienced deepwater explorers, demonstrating the validity of its exploration strategy. Under a second farm-in agreement, Petroleum Geo Services will obtain a 10 per cent interest in the central blocks in exchange for funding half of the cost of a 2,500 square km 3D seismic acquisition programme. We view this deal as attractive, allowing Chariot to retain a 90 per cent equity interest in the acreage while significantly reducing its cost exposure. Conclusion of these agreements will remove any scepticism regarding the potential of Chariot's exploration programme offshore of Namibia. We retain our buy rating and 350p target.


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SHARE TIP UPDATE:

Buy

At 125p, Chariot's shares languish below our tip of the year buy advice (191p, 7 January 2011). But there can be no better endorsement of an oil and gas play than securing financial and operating commitments from Petrobras and BP and these impressive deals also prepare the way for near-term drilling, potentially this year. We reiterate our earlier advice. Buy.

Last IC view: Buy, 231p, 31 May 2011

Upside from activity in Q4-2011 and Q1-2012

Three companies stick out in the biggest way (and do not forget Aminex).



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Worth remembering the potential upside with BOR and FOGL with CHAR not far behind.



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In demand a bit today.

Alphaville's view on today............

Chariot Oil and Gas Ltd (CHAR:LSE): Last: 143.25, up 21.25 (+17.42%), High: 149.95, Low: 123.25, Volume: 2.12m - oil off the coast of Nambia with share price rise being pinned on Citigroup have finished a big sell order.lots of leverage clients holding the stock round there many of them traders I believe. Anyway stake went below 3% on 8th and there has been ongoing selling last week so maybe finally clear

www.gulfkeystone.com/uploads/investorschronicle-22july2011.pdf

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I think that this is about to take off !......not an expert on charts but to me it looks like it.... plus reading through the rns's and you can't help not being impressed !....

Certainly warming up :)

RNS Number : 6698W

Chariot Oil & Gas Ld

02 February 2012

02 February 2012

Chariot Oil & Gas Limited

("Chariot")

Conclusion of farm-out agreement with BP in block 2714A

Chariot Oil & Gas (AIM:CHAR), an independent oil and gas exploration company, today announces that its wholly owned subsidiary, Enigma Oil & Gas Exploration (pty) Limited ("Enigma"), has received full approval from the Ministry of Mines and Energy in Namibia for its farm-out agreement with BP in block 2714A, which was announced on 8 August 2011. As part of the farm-out agreement, BP has committed to cover Chariot's cost of drilling the first exploration well in this block as well as past costs incurred, which have now been received.

As a result, the ownership of Southern Block 2714A now consists of 50% Petrobras, 25% BP and 25% Enigma. The block currently has 11 identified prospects, one of which - Nimrod - is due to be tested in H2 of this year with the drilling of the Kabeljou-1 exploration well. The proposed well location has been agreed by all parties and Petrobras, as Operator, will update the partners with its progress throughout the coming months.

Paul Welch, CEO, commented:

"We are very pleased to have concluded this agreement with the support of the Ministry of Mines and Energy in Namibia. We can now push forward with our drilling campaign on Kabeljou-1 using the additional knowledge and experience of our new partner, whilst reducing our capital and risk exposure."

RNS Number : 9876W

Chariot Oil & Gas Ld

08 February 2012

08 February 2012

Chariot Oil & Gas Limited

("Chariot")

Completion of Seismic Acquisition in Central Blocks

Chariot Oil & Gas (AIM:CHAR), an independent oil and gas exploration company, is pleased to announce that it has completed the 3500km(2) 3D seismic acquisition programme across its Central Blocks (2312 A & B and Northern halves of 2412 A & B) offshore Namibia. The operation, carried out in conjunction with Petroleum Geo-Services ("PGS"), was acquired by the Ramform Viking using the latest GeoStreamer(TM) technology. The survey targeted an area in the north east section of the licence that contains 11 leads with a combined prospective resource potential of 3.972 billion barrels of oil. Processing and interpretation of the data collected has commenced and we look forward to being able to report the results in the second half of this year.

Paul Welch, CEO, commented:

"This 3D seismic survey is the largest undertaken by Chariot to date and, due to the Geostreamer(TM) technology, has provided excellent quality data despite difficult weather conditions at times. The Central Blocks are the least mature of our portfolio and we look forward to receiving the processed information, which will enable us to identify further targets to include in our long term drilling campaign."

Hotting up again........... could just be profits taken in GKP getting put into CHAR, but who knows.

200p soon ? possible.

More zoom zoom for CHAR, up she goes.

Another 5%.

Strong again, into the 160's now.

Nearing the 170's..... :)

Nice rises of late, and drilling a well soon as well. :)

180's........... :)