Chariot Oil Says Woodside Chose Not to Boost Stake in Morocco Project

By Alex MacDonald

LONDON--U.K.-listed Chariot Oil & Gas Ltd. (CHAR.LN) said Tuesday that it is disappointed that its partner Woodside Petroleum Ltd. (WPL.AU) chose not to exercise an option to increase its stake in the Moroccan Rabat Deep prospect and become project operator.

Australia-based Woodside had an option to take over as operator of the project from Chariot and fund drilling costs for a further 25% equity stake in Rabat Deep. Instead Woodside decided to maintain its existing 25% stake, Chariot said.

Chariot owns a 50% stake in the project while Morocco's state-backed Office National des Hydrocarbures et des Mines also owns 25%.

"It is disappointing that Woodside has not exercised its option, but we remain optimistic regarding the potential of the Rabat Deep permits and particularly that offered by the JP-1 prospect," said Larry Bottomley, chief executive of Chariot. "As mentioned previously, partnering is tougher, but we also believe that this climate can be an opportunity for those who are looking to take advantage of high-potential assets, such as those within our portfolio."

At 0718 GMT, Chariot's shares were down 2.4% at 8.10 pence a share, giving a market capitalization of GBP21 million ($31 million).

The company also said that the results from its Loukos and Mohammedia seismic data surveys offshore Morocco had identified several material prospects.

Chariot holds exploration licences covering four blocks in Namibia, one block in Mauritania, three blocks in Morocco and four licenses in the Barreirinhas Basin offshore Brazil.

Write to Alex MacDonald at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires