Energean completes farm-of Morocco licences with Chariot

10th Apr 2024 07:21

(Sharecast News) - Energean announced on Wednesday that it has finalised its farm-in to Chariot's offshore acreage in Morocco, after obtaining all the necessary approvals from the Moroccan authorities.

The FTSE 250 company said that as part of the farm-in agreement, Energean paid $10m in cash on closing.

The board said the move solidified the firm's position in the region, with a revised participation structure in the Lixus and Rissana licences.

In the Lixus licence area, Energean now held a 45% stake, operating alongside Chariot at 30% and ONHYM at 25%.

Similarly, in the Rissana licence area, Energean's participation stood at 37.5%, with Chariot holding an equal share, and ONHYM maintaining a 25% interest.

At the same time, Energean said it had inked a rig contract with Stena for the use of its Stena Forth drill ship.

The deal would encompass the drilling of an appraisal well, with an option for an additional well.

Energean said the focus of the operation would be on the Anchois field within the Lixus licence area, with drilling scheduled for the third quarter of this year.

The company said the primary objective of the appraisal well would be to conduct a drill stem test on the main gas-containing sands.

Additionally, the consortium aimed to target an estimated 11 billion cubic metres of gross unrisked prospective resource.

"We are delighted to start working in Morocco, where we hope to repeat our previous successes in the Mediterranean - enhancing domestic production, helping to meet the country's growing demand, with the potential for exports for any surplus supply, and facilitating both energy security and long-term coal reduction," said chief executive officer Mathios Rigas.

At 0800 BST, shares in Energean were up 0.48% at 1,048p.

Reporting by Josh White for Sharecast.com.