2023-12-07 10:52:07
(Alliance News) – Energean PLC on Thursday announced an operating agreement with Chariot Ltd, the FTSE 250 listed company’s first foray into Morocco.
Energean, a Mediterranean-focused hydrocarbon exploration and production company, said the tie-up with Africa-focused transition energy company Chariot will involve offshore gas development and exploration Moroccan.
Energean said: “This entry into a new country fits perfectly with Energean’s strategy to become the leading independent producer in the Mediterranean.
The company’s focal point is the Anchois gas field, which has gross gas resources of 18 billion cubic meters.
Energean will take a 45% stake in the Lixus offshore license, where Anchois is located. Lixus covers an area of approximately 1,794 square kilometers. The two companies plan to drill an appraisal well in 2024, following which Energean will have the option to increase its stake to 55%.
If this option is exercised, Chariot will be able to choose as payment either a convertible loan of USD 50 million over five years, or three million Energean shares issued immediately following the exercise of this option.
Energean will also operate just under 38% of the Rissana license and will take over the operation of this license and Lixus.
Mathios Rigas, Managing Director of Energean, said: “These assets are particularly interesting as we understand the key geological, commercial and political drivers of the region.
In exchange, Chariot will receive an upfront cash payment of $10 million once the deal closes, and will retain stakes of 30% and just under 38% in Lixus and Rissana, respectively.
The National Office of Hydrocarbons and Mines of Morocco holds 25% of each license.
Adonis Pouroulis, Managing Director of Chariot, said: “Energean is a partner with a proven track record of rapid construction and delivery of offshore projects of this type. Energean also shares our view that Anchois and the surrounding areas offer significant growth potential and we are in line with our plans for the future.
Chariot shares were down 9.3% at 12.42 pence each in London on Thursday morning. Energean was down 3.4% at 995.00 pence each.
By Hugh Cameron, Alliance News reporter
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