transformational growth through exploration june 2017 · reservoir demonstrated in jurassic...

www.chariotoilandgas.com Growth through Exploration June 2017 1

South Atlantic 100 Ma Reconstruction

Morocco

Brazil

Namibia

Transformational Growth Through Exploration

June 2017

www.chariotoilandgas.com Growth through Exploration June 2017

Disclaimer and forward looking statements

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any

offer to buy or subscribe for any securities in the Company nor shall they or any part of them form the basis of or be relied upon in any

manner or for any purpose whatsoever.

These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an

investment activity and any decision in connection with a purchase of shares in the Company must be made solely on the basis of the

publicly available information. Accordingly, neither the Company nor its directors makes any representation or warranty in respect of

the contents of the Presentation Materials.

The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without notice or

liability to any party. The presentation materials contain forward-looking statements which involve risk and uncertainties and actual

results and developments may differ materially from those expressed or implied by these statements depending on a variety of

factors. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information or

opinions contained herein, which have not been independently verified. The delivery of these Presentation Materials shall not at any

time or in any circumstance create any implication that there has been no adverse change, or any event reasonably likely to involve

any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials.

The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further

distributed, passed on, or the contents otherwise divulged, directly or indirectly, to any other person (except the recipient’s

professional advisers) or published, in whole or in part, for any purpose whatsoever. The Presentation Materials may not be used for

the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.

2


Chariot – Transformational growth through exploration

3 **** As at 31.05.17

High impact Atlantic Margins explorer

Giant potential in an extensive portfolio of prospects and leads .

Each asset has material follow-on potential and large running room.

5 drill-ready* prospects, one of which is already funded.

Each prospect has the potential to create transformational value.

Team focused on maximising value

Experienced team managing technical, commercial and financial risk.

Demonstrated capital discipline.

Focused on delivering shareholder value by the early monetisation of discoveries.

Strong balance sheet

Cash position exceeds work programme commitments.

No debt.

Prudent financial management.

Near-term value triggers

Drilling RD-1 in Morocco planned for 2018 with net mean PR of 77mmbbls.

Preparing to drill Prospect S* in Namibia targeting a 2H, 2018 spud with net mean

PR of approximately 300mmbbls.

Aim is to drill 3 wells within the next 2 years*.

Morocco Drill-ready Inventory

Prospective resources

768mmbbls**

350mmbbls** Emerging region

Brazil

Lead Inventory


300mmbbls+*** Frontier region

Namibia Drill-ready Inventory


459mmbbls**

469mmbbls**

8.1Tcf** Frontier region

* Subject to funding

** From Netherland Sewell and Associates Inc. (“NSAI”) estimate of individual prospect Gross Mean Prospective Resource

*** Internal Chariot estimate

Market Cap ~£39m ~US$50m****

YE 2016 Cash US$25m


Delivering the Strategy

4

ACCESS

Secure large acreage positions in new and

emerging basins

Take operated position in the early phases to

maintain control over destiny

Build a diversity of basins and plays

Retain broad portfolio and risk profile

DE-RISKING

Position the portfolio as a Fast Follower

Apply appropriate risk reduction technologies

Levered partnering at investment phases

Maintain portfolio diversity and management

Maintain Capital Discipline

VALUE

CYCLE

DRILL

Build a Drill-ready Inventory: RD-1 ; Prospect-S ; LKP-1a; Prospect B; AO1

Accelerate the drilling programme: RD-1 Q1 2018 ; Prospect-S 2018 H2

Return transformational shareholder value by the early monetisation of discoveries


Track record of delivery

5

ACCESS

De-risked multiple assets at low cost through seismic, partnering & 3rd party drilling

Levered partnering with major industry players: Eni, Woodside, Cairn, BP and Petrobras

Actively managed the portfolio with both relinquishments and acquisitions

Demonstrated capital discipline, reducing annual cash overhead from $9.4m to $5.0m*

Expanded portfolio in high potential, new and emerging basins characterised by

flexible work programmes and excellent contract commercial terms

Currently operator of all but one licence – with operatorship transferred for drilling

Assets in 3 countries, 4 basins and 5 plays in 6 licence areas

Demonstrated operational capability by successfully operating a deep water well &

multiple seismic programmes

Built a giant-scale drill-ready inventory of high quality opportunities using in-house

skills and experience – key to success in farm-outs

4 independent drill-ready prospects, all transformational

Secured a capped carry on one funded well, to be drilled in 1Q, 2018

DE-RISKING

DRILLING

* 2013 cash overhead compared to 2016

** Subject to acquiring partners and funding

AIM IS TO DRILL 3 WELLS OVER THE NEXT 2 YEARS**

ROUTE TO DELIVERY IS THROUGH CHARIOT’S RIGOROUS PARTNERING PROCESS


Well Partnering

6

MOROCCO

NAMIBIA

BRAZIL

Rabat Deep

Central

Blocks 2312 & 2412A

BAR-M-292

BAR-M-293

BAR-M-313

BAR-M-314

1H

2017

2H

2017

2H

2018 Country Licence

Well Partnering

New

Ventures

Drilling*

Zero Cost

Carried well

Option acreage

no remaining

commitments

3D Interpretation

1H

2018

RD-1

Planned Activity

Evaluation of New Venture Opportunities

Mohammedia

Kenitra

1H

2019

10%

Funded well

75%

65%

85%

100%

Option acreage

no remaining

commitments

Seismic

commitment

MOROCCO

Well Partnering

Drilling*

Drilling*

Drilling*

NAMIBIA

Option acreage

no remaining

commitments

Well Partnering

Southern

Blocks 2714A&B

100%

* Subject to acquiring partners and funding

** Netherland Sewell and Associates Inc. (“NSAI”) estimate of Gross Mean Prospective Resource

*** Internal Chariot estimate

JP-1

768mmbbls**

LKP-1a

350mmbbls**

Prospect S

459mmbbls**

AO1

8.1Tcf**

Lead potential

300 – 500mmbbls***

3D

2D

3D

Interp

Drilling*

Prospect W

284mmbbls**


Portfolio of drill-ready assets in emerging and frontier basins - substantial play opening opportunities

• A range of play types and investment opportunities.

• Water depths range from 350m to 1650m in basins with benign metocean conditions and normal pressure/temperature

regimes – lower deepwater exploration and development costs expected.

• Priority drilling candidates all have material follow on targets and running room in the success case.

• Transformational scale, excellent commercial terms and lower costs result in high margin assets with robust economics.

Summary of high-graded prospects and follow on potential:

Drill-ready inventory of high margin targets in diversity of plays

7 * NSAI estimate of Gross Mean Prospective Resources

Drill-ready inventory in lower-cost deepwater operating environments in new and emerging basins with excellent

commercial contract terms creating high-margin assets offering transformational potential in the success case.


YE 2016 cash $25.0m

Cash in excess of licence commitments

Recovery of Rabat Deep investment through farm-out

received in January 2017

Moroccan seismic commitment met ~US$5m

No remaining commitments

No debt

Capital discipline and allocation of funds

At YE 2016 US$6.2m secured against licence work commitment

bank guarantees

En

d 2

01

2 C

ash

Eq

uit

y

rais

e

Farm

-in

re

co

ve

rie

s

YE

20

16

Ca

sh

Inve

stm

en

t in

th

e p

ort

foli

o

$14m

$91.8m

$68.3m

$25m $38.5m

Prudent financial management of funds 2013 to YE 2016: Reduction in Annual Cash Overhead ($m) 2013 to date:

Cash position:

$95.8m


Late

Jurassic

Early

Cretaceous

Mid

Cretaceous

Morocco Nova Scotia

9

Argentina / Uruguay Namibia

Brazil Barreirinhas Ghana

Springhill play Repsol et al

BP, Shell, Total, Exxon, Statoil, Tullow, Petrobras, YPF

Reserve 4TCF and associated liquids

Panuke Deep (Encana) Sable (ExxonMobil, Shell)

Jubilee 370mmbbls

TEN 300-500mmbbls

Discoveries Exploration targets

Portfolio theme


Chariot Planned Activity 2017 / 2018

Drill RD-1 (Rabat Deep) with a capped carry:

768mmbbls* 4-way dip closed Jurassic carbonate prospect in 1210m WD.

Potential to de-risk an additional 6 Jurassic leads ranging from 119 to 1041mmbbls*.

Drill LKP-1a** (Mohammedia) or Kenitra-A** (Kenitra):

LKP-1a 350mmbbls* is an attribute supported 3-way dip closed faulted Cretaceous clastic prospect in 350m WD

defined on 3D seismic data.

Kenitra-A 464mmbbls*** is an attribute supported 3-way dip closed faulted lead in Cretaceous deepwater

clastics targeted by the 2017 3D seismic acquisition campaign.

Complete 3D and 2D seismic processing over Mohammedia & Kenitra to define additional prospectivity.

10

Ownership

Rabat Deep 10%; Eni (Op.) 40%; Woodside 25%; ONHYM 25%

Mohammedia 75% (Op.); ONHYM 25%

Kenitra 75% (Op.); ONHYM 25%

Recent Chariot Activity

Rabat Deep farm-out and transfer of Operatorship to Eni.

Now zero-cost and capped carry on the JP-1 prospect

expected to be drilled in early 2018 by the RD-1 well.

Acquired commitment 2D and 3D seismic data over

Mohammedia & Kenitra.

* NSAI estimate of Gross Mean Prospective Resources

** Subject to acquiring partners and funding

*** Internal Chariot estimate of Gross Mean Prospective Resources

Morocco Summary

Jurassic light oil production

Gas-condensate discovery

Gas production

RD-1 to spud early 2018 Repsol

Chariot

Rabat Deep

Mohammedia

Kenitra

JP-1

LKP-1a

Kenitra-A

Morocco


Proven source rocks, modelled mature

kitchens and nearby onshore legacy light

oil fields support hydrocarbon source

presence and effectiveness.

Reservoir demonstrated in Jurassic

carbonates from on-trend offshore wells

and in Lower Cretaceous deltaic and

shallow marine clastics mapped in outcrop

adjacent to the Mohammedia licence.

Rabat Deep Prospectivity:

JP-1 768mmbbls* is a 4-way dip closed

200km2 structure in 1210m WD in the

Jurassic carbonate play.

Additional 6 Jurassic leads ranging

from 119 to 1041mmbbls*.

Mohammedia Prospectivity:

JP-2 117mmbbls* is 3-way dip closed

faulted structure in 350m WD in the

Jurassic carbonate play, below -

LKP-1A 350mmbbls* is an attribute

supported 3-way dip closed faulted

structure and overlies JP-2 . Additional

3 prospects in the Lower Cretaceous

shallow-marine clastic play.

Kenitra Prospectivity:

Kenitra-A 464mmbbls** is an attribute

supported 3-way dip closed faulted lead

in Lower Cretaceous deepwater clastics.

Morocco Portfolio


** Internal Chariot estimate of Gross Mean Prospective Resources

11

JP1

JP2

NE Mohammedia Rabat Deep

SW NE Kenitra

JP-2

Early Aptian Structure & AVO

Kenitra-A LKP-1a LKP-2 JP-1 LKP-1A Kenitra-A JP-1 LKP-2A

3D 2D


Ownership

Central Blocks: 65% (Op.); AziNam 20%; NAMCOR 10%; BEE 5%

Southern Blocks: 85% (Op.); Namcor 10%; BEE 5%


Central Blocks 2312 & 2412A :

2600km2 3D seismic acquired over the outboard high processed in conjunction

with existing 3500km2 3D.

The evaluation of these data has defined a structural fairway with five 4-way

dip-closed structures identified in the Upper Cretaceous turbidite play.

Focus prospects are:

Prospect S 459mmbbls** 2018 drilling candidate.

Prospect W 284mmbbls** Follow-on candidate.

Prospect B 469mmbbls** Deeper target in a stratigraphic trap.

Partnering process initiated and preparations for drilling underway.

Southern Blocks 2714A & 2714B:

Evaluation complete high-grading:

AO1 prospect 8.1Tcf** drilling candidate.

AO2 prospect 2.2Tcf** follow-on candidate.

Partnering discussions underway.

Chariot Planned Activity in 2018

Central Blocks: Drill Prospect S* with option on Prospect W*.

Southern Blocks: Drill AO-1*.

12

Good reservoir

World-class

source rock

Kudu Gas

Field

2 source

rocks

Namibia Summary

* Subject to acquiring partners

** NSAI estimate of Gross Mean Prospective Resources

2 source

rocks

AO1

Prospect B

Prospect W

Prospect S

Shell

Tullow

GALP

GALP

Chariot

Chariot

Serica

Maurel

& Prom

41 API Oil

Namibia


Wells adjacent to Chariot acreage

encountered excellent quality source

rocks.

Light oil (41o API) recovered adjacent to

Central Blocks.

Excellent quality Upper Cretaceous

turbidite reservoir rocks encountered in

Namibian deepwater wells.

Structural Prospectivity:

Prospect S 459mmbbls* in 3 separate

Upper Cretaceous deepwater turbidite

reservoir targets in a 4-way dip closure.

Prospect W 284mmbbls* in 2 separate

Upper Cretaceous deepwater turbidite

reservoir targets in a 4-way dip closure.

Additional 3 structural 4-way dip-

closed prospects.

Stratigraphic Prospectivity:

Prospect B 469mmbbls* in Upper

Cretaceous deepwater turbidite

reservoir in an upper slope fan

stratigraphic trap.

Prospect D 416mmbbls* in Upper

Cretaceous deepwater turbidite

reservoir in an upper slope fan

stratigraphic trap.

Namibia Portfolio


Primary Reservoir Secondary Reservoir Primary Source Secondary Source R R

Prospect W Prospect S


Ownership

BAR-M-292, 293, 313, 314; 100% (Operator).

Plan to bring in partner for drilling.


Acquired and processed 775km2 of 3D seismic (PSDM)

covering all 4 blocks; no remaining commitments.

Interpretation underway.

Chariot Planned Activity in 2017 / 2018

Evaluate 3D seismic and develop a drill ready prospect.

Partnering process for drilling to follow a play opening

well to be drilled in the neighbouring deepwater block.

Industry Activity

10 deepwater wells, most committed from Round 11, to

be drilled over the next 3 years.

1 well committed in the block to the north of Chariot’s

acreage.

Petrobras

Brazil

1 well

3,000 km2 3D seismic

131 M$ signature bonus

8 wells

5,000 km2 3D seismic

178 M$ signature bonus

<800 km2 3D

2 M$ bonus

PTTEP & Mitsui

farm ins

Guajuru

Prospect

Chariot

Brazil Summary

Chariot proprietary

3D acquired 2016

CGG multiclient 3D

acquired 2015/16

Shell

Shell

Petrobras

BP

Petrobras


Only 3 deepwater wells drilled in the basin.

Presence of excellent Tertiary and Cretaceous

turbidite reservoirs.

Presence of Cenomanian-Turonian source rocks

demonstrated in shallow-water wells drilled in-

board of Chariot’s acreage.

Evidence for sufficient burial of the Cenomanian-

Turonian source rock for hydrocarbon generation;

supported by shows and potential seismic DHI’s.

Direct conjugate to Cote d’Ivoire & Ghana

discoveries.

Prospectivity

200 km2 four-way dip-closed structure

identified on Chariot acreage from high quality,

commitment proprietary 3D seismic data.

Deepwater turbidite seismic facies and fan

entry points indicate presence of reservoir sand

on the fastrack processing of the 3D data.

Numerous leads identified within Chariot

acreage on legacy 2D seismic data and

subject of the 2016 3D seismic survey ranging

from 50m to 1800m WD.

Potential for material hydrocarbon

accumulations comparable to those found in

Ghana (Jubilee 370mmbbls*, TEN 300-

500mmbbls**).

15

*Offshore Technology ** Reuters

Chariot

A

A’

Brazil Portfolio

Barreirinhas Basin

Jubilee Discovery

Kosmos / Tullow

Depth migrated 3D traverse Depth slice c.2400m

200 km2

Large four-way

developed at multiple

levels Shell

Depth migrated 2D line

1km

2km

3km

4km

5km

6km


Strategy underpinned by:

Diverse portfolio and a drill-ready inventory with transformational potential.

Core focus on risk management - partnering and technical development to optimise drilling outcomes.

Strong balance sheet, strict capital discipline. Cash exceeds commitments and no debt.

A highly experienced technical, financial and commercial team.

Delivery of a capped carry on the RD-1 well expected to be drilled in 1Q, 2018 with transformational potential.

Preparations underway to drill Prospect S* targeting 2H, 2018 spud.

Focused on growth and development

Aim is to drill 3 wells within the next 2 years*.

Looking to capitalise on current sector environment.

Ongoing evaluation of potential opportunities to broaden and balance the risk profile.

Seeking to create transformational value and generate sustainable growth over the longer term.

Outlook and Objectives

16

* Subject to funding


Appendices – Drilling Inventory

17


W E

15km

RD-1

JP-1

JP-2

Top Carbonate Depth

Structure Map JP-1

0.10.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.1

0.10.1

0.1

0.1

0.1

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2

0.2 0.2

0.2 0.2

0.20.2

0.2

0.2

0.3

0.3 0.3

0.3 0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.3

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.4

0.5

0.5

0.50.5

0.5

0.5

0.5

0.5

0.50.5

0.5

0.5

0.5

0.6

0.6

0.6

0.6

0.6

0.6

0.60.6 0.6 0.6

0.6

0.6

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.7

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.80.8

0.8

0.9

0.9

0.90.9

0.9

0.90.9

0.9

0.9

0.90.9

500 550 600 650 700

3720

3760

3800

3840

LBS-1 2016

Pseudo-1 2016

Pseudo-2 2016

Pseudo-3 2016

Pseudo-4 2016

Pseudo-5 2016

RSC-1X 2016

Top Earliest Jurassic SR Transformation Ratio 0 Ma

0 0.2 0.4 0.6 0.8 1

70 km

PaulR Jul 28 2016

Jurassic Source

Maturation Map

Nearby onshore legacy fields have produced 34

- 41o API oil from Jurassic carbonates and

clastics.

Jurassic source rocks proven to be excellent

quality in nearby DSDP deepwater probe and in

outcrop in the Moroccan Atlas mountains.

Source rock modelling describes mature

kitchens adjacent to the JP-1 prospect with the

potential for a significant oil charge.

On-trend wells in Jurassic carbonate reservoirs

show net reservoir ranging up to 110m with

average porosities between 12% - 17%.

JP-1 falls on an isolated shelf-edge with the

potential for enhanced primary porosity in clean,

high energy carbonates. Shelf bounding faults

may enhance fluid flow and associated

dolomitisation for improved secondary porosity

as seen the analogue Panuke field on the

conjugate margin in Nova Scotia.

JP-1 is a 4-way dip closed structure in excess of

200km2 prospect with 768mmbbls* resource.

There are an additional 6 Jurassic leads in

Rabat Deep ranging from 119 to 1041mmbbls*.

Following Woodside’s farm-in in 2014, Eni has

subsequently entered the permits as operator

and will carry Chariot in drilling the deepwater

well RD-1 to an agreed cap, which will target the

JP-1 prospect.

RD-1 is expected to be drilled in Q1 2018.

JP-1

Jurassic Carbonate Platform

Lower Cretaceous Turbidite Fairway

U Jurassic Øavg:16% Net: 110m

N S




L Jurassic Øavg:12% Net: 20m






UPPER JURASSIC

MID JURASSIC

MID JURASSIC

UPPER JURASSIC

MID JURASSIC

UPPER JURASSIC

Jurassic facies and porosity – regional well correlation

Drilling Inventory

Morocco – RD-1 (drilling the JP-1 prospect)

Drill-ready and funded for drilling in early 2018

Jurassic – Cretaceous

Paleogeography


www.chariotoilandgas.com Growth through Exploration June 2017 19 * NSAI estimate of Gross Mean Prospective Resources

Drilling Inventory

Morocco – LKP-1a

Drill-ready

TW-1

SN-1

FB-1

BM-1

LAM-1

DOB-1ZEM-1

THL-1

SEA-3SEA-2

SEA-1

SAH-1

RSC-1

RJB-4RJB-3

RJB-2

RJB-1

OZN-1

OYF-1

OYB-1

ONZ-5ONZ-4

OLM-9

OLM-8OLM-1

OLB-2

OLB-1

OBZ-1

OBD-2

NRT-6MKR-1

MBS-1

MAO-1

LTO-3LTO-2

LTO-1

LBS-1

KAT-2

KAT-1

IZA-1

HRN-3

EBA-2

EBA-1

DOS-1DOG-1CGD-4

BHL-1

OLD-1A

KZ-101

KA-101

DF-101

BT-101

BJ-118

BJ-117

BJ-116BJ-115

BJ-114

BJ-113

BJ-112

BJ-111

BJ-110BJ-109

BJ-108

BJ-106

BJ-105

BJ-104

BJ-102

Merou-1

SMA-101

Lar A-1

Baton-1

Tselfat-1Haricha-1

Dardara-1

Anchois-1

Ksiri West

Bou Draa-1

Deep Thon-1

Tisserand-1

Sidi Amer-1

El Anasba-1

Beni Fdal-1

Bled Azrar-1

BJ-102 (bis)

Oued Mellah-1

Azib El Hamra-1

Douar Nouaoura-1

Douar Khelalfa-1

Dardara Southeast-1

0 10 20 30 405

Kilometers

CH_AFR_Basemap(A4-LNDSCP)_NSM_110107.mxd

Lwr Cretaceous outcrop

Cretaceous

Paleogeography

W E N S LKP-1a LKP-1a

LKP-1a Structure, Amplitude & AVO map

LKP-Complex - Top Progrades Amplitude map

Cretaceous Facies

Proven source rocks, modelled mature kitchens

and nearby onshore legacy light oil fields

support source presence and effectiveness.

Outcropping Lower Cretaceous fluvial clastics

identified supports the seismic facies description

of down-dip delta top and delta front facies over

the Mohammedia licence.

LKP-1a is a faulted 3-way dip closed structure

with Class III AVO dip conformance from

proprietary 3D seismic data, analogous to the

Cohasset field on the conjugate margin in Nova

Scotia.

At a water depth of 350m, LKP-1a has a PR of

350mmbbls* and is part of a complex of 3D

defined prospects with a summed mean gross

prospective resources in excess of 1Bbbls*.

The LKP complex of prospects extends

southwards into part of Mohammedia with no

current seismic coverage.

LKP-1a

Rabat

Deep

Class III AVO anomaly Class III AVO anomaly


Dimming above spill

20

Wells adjacent to the Central Blocks

encountered excellent quality mature

Apto-Barremian source rock, modelled

to be oil mature in the region.

Nearby Wingat well recovered 41o API

oil from thin sands in the Aptian.

Shallow water wells in the offshore

Walvis Bay area show the presence of

significant volumes of sand updip of

the Central blocks.


turbidite reservoir rocks encountered

in Namibian deepwater wells, with an

average porosity of 19% reported in

Baobab sands in the Murombe well.

Prospect S seismically defined as 4-

way dip closed upper slope turbidite

fan with 3 potential targets with

dimming on structure. Combined

prospective resources are estimated

at 459mmbbls*.

Prospect W seismically defined as 4-

way dip closed upper slope turbidite

fan with 3 potential targets with

dimming on crest of upper target.

Combined prospective resources are

estimated at 284mmbbls*.

Three additional 4-way dip closed

structures identified in the play.

Drilling Inventory

Central Blocks Namibia – Prospects S & W

Drill-ready


NE

U.Cretaceous sands

10m

Prospect S Prospect W

S 94

Structure

S 94

Amplitude

S 106

Structure

S 106

Amplitude

W 94

Structure

W 94

Vp/Vs


Wells adjacent to the Central Blocks

encountered excellent quality mature

Apto-Barremian source rock, modelled

to be oil mature in the region.

Nearby Wingat well recovered 41o API

oil from thin sands in the Aptian.

Shallow water wells in the offshore

Walvis Bay area show the presence of

significant volumes of sand updip of

the Central blocks.


turbidite reservoir rocks encountered

in Namibian deepwater wells, with an

average porosity of 19% reported in

Baobab sands in the Murombe well.

Prospect B seismically defined as an

upper slope turbidite fan with Vp/Vs

conformance with structure coincident

with a subtle flat event. In 1100m of

water, Prospective Resources are

estimated at 469mmbbls*.

Additional 5 prospects and 6 leads

identified on the 2012 proprietary 3D

seismic data, with Prospect D with a

resource of 416mmbbls*.

Multiple additional leads identified on

the 2015 proprietary 2D seismic data

and subject of the current 3D seismic

survey.

Drilling Inventory

Central Blocks Namibia – Prospect B

Drill-ready


NE Aptian

Source Rock

Maturity

Gas

Mature

Immature

U.Cretaceous sands

2312

2412A

Prospect B

Marls &

Carbonates

Marls &

Carbonates Platform

Marls

Aptian Source

Seismic line

Seismic line

10m


Aptian source rock proven to be excellent quality in the Moosehead

well and modelled oil mature on-block, with significant, down-dip off-

block gas kitchen likely to cause a late gas flush as reported at the

nearby Kudu gas field.

Aptian clastic onlap onto basement analogous to the volumetrically

significant Early Cretaceous Springhill onlap play in the Magallanes

(Austral) basin in Argentina.

Aptian S1/S2 Onlap prospects AO1 and AO2 defined on proprietary

3D seismic data demonstrate far-offset amplitude conformance with

structure. Whilst seismic response is uncalibrated this observation is

consistent with a hydrocarbon accumulation.

Prospect AO1 extends over 420km2 and has a gross mean

prospective resource estimated in excess of 8.1Tcf and lies in 400m

of water.

Prospect AO2 extends over 150km2 with a gross mean prospective

resource estimated in excess of 2.2Tcf, also in water depth of 400m.

Although high risk these prospects have the potential to be

transformational for Chariot, our partners and Namibia.

Drilling Inventory

Southern Blocks Namibia – AO1 & AO2

Drill-ready and partnering process initiated

50km

Aptian

Source Rock

Maturity

2714A

2714B

Immature

Gas

Mature

Kudu gas

Field

25km

25km

2714A

2714B

2714A

2714B

S1/S2 Depth

Structure

Map

S1/S2 Depth

Far Offset

Amplitude

Map



Appendices - Corporate

23


Analyst Coverage & Targets

Market Statistics Share Price (31 May 2017): 14.50p

Key Shareholders

Source: Bloomberg, Factset

24

Major Shareholders* % OS

Westward Investments (Adonis Pouroulis – Director) 10.6

TD Direct Investing 8.0

Hargreaves Lansdown Asset Management 7.6

Protech Namibia 7.5

Barclays Personal Investment Management 6.4

Halifax Share Dealing 5.1

Sprott Asset Management 4.8

Richard Griffiths 4.4

*Figures as per latest Equiniti share holding analysis (31.03.2017)

Shareholders (31.03.17)

Corporate snapshot

Market Statistics (31.05.17)

Listing: AIM, London

Ticker Symbol: CHAR

No. of Shares in Issue (at 31 May 2017): 268,522,457

Share Options 3,000,000

Share Awards under employee LTIP 14,347,278

Non-Executive Directors restricted share units 1,559,873

Current Market Capitalisation : US$50.0m

Daily Volume (3 Month Avg.): 1,162,420

Firm Name Recommendation Date Target price

finnCap Corporate Feb 2017 35.0

BMO Capital Markets Market Perform March 2017 6.0

Cantor Fitzgerald Hold Jan 2017 9.0

Peel Hunt Buy April 2017 20.0

Average 17.5


The Management Team

25

• 35 years experience

• Track record of building exploration &

production businesses

• Developed exploration programmes that led to

major discoveries including Franklin, Cusiana,

Cupiagua, Ursa Minor, Thunder Horse, Tubular

Bells, Blind Faith, INXS and Ceiba .

Larry Bottomley

CEO and BOD

member

In house technical, operational and commercial skill set ; Track record of securing funding and delivering exploration success

• 15 years experience in exploration and production.

• Held a wide variety of technical and management

positions, focused largely on the African Atlantic margin

and Andean foreland basins in Latin America.

• Specialises in the identification and evaluation of new

acreage and farm-in opportunities.

Duncan Wallace Exploration Manager

Alex Green Commercial Manager

• Over 25 years of experience in the business

development, commercial and financial aspects of the

upstream oil and gas sector.

• Expertise in negotiating oil and gas sales agreements

and undertaking financial and commercial analysis for

business development.

• 35 years experience

• Held senior geologist and consult and posts

• playing a major role in prospective acreage

identification and acquisition

• Participated in the evaluation, access and

interpretation leading to the discovery of Ceiba

and Chinguetti

Matthew Taylor Technical Advisor

• Chartered Accountant with over ten years of

experience in the oil and gas sector.

• Previously with BDO LLP’s natural resources

department

• Worked with Main Market, AIM and ASX quoted oil

and mining companies with exploration and

production assets

Julian Maurice-Williams CFO

• Over 25 years of experience in the oil and gas industry

• A Senior Geophysicist with a specialisation in the

seismic acquisition, processing and quantitative

geophysical analysis in the interpretation and evaluation

of 2D and 3D seismic programmes as well as the

assessment of new opportunities.

Julia Kemper Principal Geophysicist


George Canjar, Non-Executive Chairman

30 years with Shell and then Carrizo supervising exploration & seismic operations; deep offshore W. Africa and

the Gulf of Mexico

Specific expertise in deal structuring, portfolio development, risk analysis and strategic modelling

Broad experience in the E&P sector as well as a variety of corporate activity

Currently Director of New Business Development for Hess Corporation

Adonis Pouroulis, Non-Executive Director

Extensive experience in the exploration and mining sector, primarily on the African continent

Expertise lies in the discovery and exploration of natural resources and bringing them into production

Founded and listed Petra Diamonds (LSE: PDL) in 1997 – a FTSE 250 company and one of the largest

independent diamond producers in Africa today

Co-founder of Chariot and a founder of Pella Resources

Robert Sinclair, Non-Executive Director

Managing Director of Artemis Trustees Limited, a Guernsey-based fiduciary services group

Over 37 years’ experience in finance and accountancy, of which 27 have been spent in the Guernsey financial

services industry

Extensive experience of offshore trusts and corporate entities and financial planning for both individuals and

corporations

26

The Non-Executive Team


Over 200 years of experience in exploration, development and production

Participated in the evaluation, access and interpretation leading to the discovery of over 40 fields with 14 major discoveries

Management team with a track record of securing funding and delivering exploration success

History for accessing quality acreage ahead of the Industry

27

11 Countries with Operator development and production experience within the Chariot team

31 Countries with Operator exploration experience within the Chariot team

Track Record


Re-award Central blocks & 2714A.

Namibia

28

2011 2012 2013

CPR on 2D of all

Blocks, Namibia

Placing raises

US$140

million

Acquired Loukos, Casablanca/Safi and

Rabat Deep Morocco

3,500km² 3D

Mauritania

Placing raises US$48.7

million to part fund the

drilling of Tapir South

Farm-in Cairn

C-19 Mauritania

Acquired BAR-M-

292,293,313,314 Brazil

2014

Acquired Mohammedia

Recon Morocco

1,700km² 3D

Morocco

2,128km 2D

2714B Namibia

CPR on Moroccan

2D

Farm-in

Petrobras

2714A Namibia

Farm-ins BP (2714A)

and PGS (Central blocks)

Namibia

CPR on Central

Blocks 3D Namibia

3,500km² 3D Central

blocks, Namibia

Relinquished Casablanca

Morocco

Tapir South well

Northern Blocks, Namibia

Chariot was founded in 2008 with an IPO on AIM raising US$90m with a purely Namibia focused portfolio

Since 2011 Chariot has developed a balanced portfolio, demonstrating its ability to identify and access high potential acreage as an early

entrant, secure key industry partners and funding in order to mature its assets and test its high potential prospects through the drill bit

Farm-in Woodside

Rabat Deep

Morocco

Placing raises US$15.0m

to fund NV and Brazilian

seismic programme

2015

1,700km 2D

Central blocks,

Namibia

CPR on

Mauritanian 3D

Achievements to date

2016

2,600km² 3D

Central blocks,

Namibia

Relinquished

Loukos, Morocco

Acquired C-19

Mauritania

Relinquished

C-19, Mauritania

Kabeljou well

2714A, Namibia

775km² 3D BAR-M-

292,293,313,314

Brazil

CPR audit on

Moroccan 3D

Farm-in Eni

Rabat Deep

Morocco

Acquired Mohammedia & Kenitra

Morocco

Relinquished Northern Blocks,

Namibia

2017


MOROCCO:

GDP: US$104.9 billion ; Annual Growth: 1.8%

Population: 33.6 million; Inflation: 1.8%

Major Industries: automotive parts; phosphate mining and

processing; aerospace; food processing; leather goods; textiles;

construction; energy; tourism

Major trading partners: Spain; France; USA; China

Constitutional monarchy; Robust economy; Good trade

relations

Country risk profile: BBB-

NAMIBIA:

GDP: US$10.18 billion; Annual Growth: 4.2%


Major Industries: meatpacking; fish processing; dairy products;

beverages; mining (diamonds; lead; zinc; tin; silver; tungsten;

uranium; copper)

Major trading partners: South Africa; South Korea; Botswana;

Switzerland

Democracy; Good relations with neighbours; Encouraging

international foreign investment

Country risk profile: BBB-

BRAZIL:

GDP: US$1.7 trillion; Annual Growth: 3.3%


Major Industries: textiles; shoes; chemicals; cement; lumber; iron

ore; tin; steel; aircraft; motor vehicles and parts; other machinery

and equipment

Major trading partners: China; USA; Argentina; Netherlands

Democracy; Significant player in world markets; Diverse

economy

Country risk profile: BB

Atlantic Margins Explorer

South Atlantic 100 Ma Reconstruction

29

Sources: CIA World Factbook (2014/2015 estimates);

FCO; Standard and Poor’s; Fitch Group;

http://globaledge.msu.edu/countries/namibia/tradestats

Countries

Why Morocco?

Highly prospective geology – proven source,

proven reservoirs, major discoveries in the

conjugate basin in Nova Scotia in the same

plays

Giant-scale targets validated by partners

World-class fiscal and commercial terms

Why Namibia?

Frontier region with drilling proving all elements

of a working petroleum system

Partially analogous with the proven Argentinian

margin and similar to Uruguay – also frontier

with numerous majors exploring

Giant-scale targets

Good fiscal regime

Why Brazil?

Frontier region with excellent reservoirs and

source proven by nearby drilling, major

discoveries in the conjugate Tano basin of

Ghana and Cote d’Ivoire in the same plays

Potential for giant-scale targets

Third-party drilling has the capacity to de-risk the

play

Good fiscal regime


Chariot Morocco:

Tax & Royalty:

• 30% Corporation Tax and CGT

• Royalty: Oil 7-10%, Gas 3.5-5%

• 10 year Corporation Tax Holiday on

production

Chariot Namibia:

Tax & Royalty:

• Royalty: 5%

• 35% Corporation Tax and CGT

• 25%- Additional Profits Tax when IRR

>15% Cash flow after Corporation Tax

Chariot Brazil:

Tax & Royalty:

• Royalty: 10%

• 34% Corporate Income Tax and CGT

• ~15% indirect value added taxes on

Opex & Capex and other minor taxes

and fees

• Special Participation Tax depending on

water depth and production rates

Indicative Contractor Share* MOROCCO:

BRAZIL:

NAMIBIA:

Morocco

Namibia

Brazil

0 50% 100%

*Source: Woodmac 2013, with Chariot terms integrated

for Namibia

Guinea

Ghana

Equatorial Guinea

Congo - B

Angola

Nigeria

30

Commercial terms

Mauritania


Chariot’s Portfolio

transposed on to

southern UK

BRAZIL

NAMIBIA

31

Chariot portfolio and our neighbours

MOROCCO


Contract Area

Acquired

Working

Interest

Approximate

Licence Area

(km2)

Operator

Ongoing

Commitments

Significant Seismic

Acquisition To Date

Drill Ready

(subject to Partnering)

Namibia offshore

Central Blocks

2312, 2412A

2014 65% AziNam 20%

16,800 Chariot None 4700km 2D; 3500km2 3D;

1700km 2D; 2600km2 3D

Southern Blocks

2714A&B

2013

2014

85%

10,943 Chariot None 2128km 2D; 3000km2 3D

Morocco offshore

Rabat Deep 2012 10% Eni 40% (Op.)

Woodside 25%

10,782 Eni 1

exploration

well

1075km2 3D

Mohammedia 2016 75% 4,654 Chariot None 375km2 & 318km2

2254km 2D

Kenitra 2017 75% 1,400 Chariot None 710km2 3D

Brazil offshore

BAR-M-292, 293, 313, 314 2013 100% 768 Chariot None 775km2 3D

Partnering Process in

2017

Partnering Process

underway

Portfolio maturity

32

Eni farm-out process

completed


2017


2017


2017


All estimates based on the evaluation of 3D seismic data

Prospect Inventory

Netherland Sewell and Associates Inc. (“NSAI”)

Chariot Internal Estimate*

Morocco: Namibia:

transformational growth through exploration june 2017 · reservoir demonstrated in jurassic...

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