Chariot Oil & Gas Limited says that the farm-out signed between its wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Ltd. and a wholly owned subsidiary of Woodside, has been approved for the Rabat Deep Offshore permits I-VI by the Moroccan authorities.

As part of the farm-out agreement, Woodside committed to pay 100% of the 3D seismic acquisition and processing costs incurred across the licence by Chariot, other back costs and in addition agreed to carry Chariot on future work up to an agreed cap, including a multibeam side-scan sonar and seabed coring survey.

A substantial part of these funds has now been received and, as a result, Chariot now expects its cash balance as at 31 December 2014 to be approximately US$52 million. The remaining balance of these funds is anticipated to be received during Q1 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.

Tags: Chariot Oil & Gas Limited, Woodside Petroleum Ltd