Chariot Oil & Gas Limited provides an update with regard to its drill rig contract negotiations. As reported in the Interim statement on 24 October 2011, the Company has been aggressively pursuing various rig options for drilling its Tapir South prospect, which included an option that would have enabled the well to spud prior to the 2011 year end.

As Chariot noted previously, the market for deep water rigs has tightened markedly, making it more challenging to secure an appropriate rig to carry out a one-well programme in Namibia without paying a significant premium.

As mentioned in the Interim statement, Chariot's Tapir South prospect is drill ready - all long lead items have been delivered, all service contracts signed, the support base secured and the drill permit granted. However, the rig anticipated to be available for the Q4 2011 spud has been contracted by another operator for a longer programme. As a result of this change in programme the rig will no longer be coming into the area in the requisite timeframe.

Tags: Chariot Oil & Gas Limited