Chariot Oil & Gas Limited (LON:CHAR) has confirmed that its farm-out deal with Eni, bringing the Italian major into the Rabat Deep project offshore Morocco, is now complete.
Eni now becomes the operator and a 40% stakeholder in Rabat Deep where a well is planned for 2018, following an environmental impact assessment and the hiring of contractors.
Chariot retains 10% of the project.
The terms of the farm-out deal mean that Chariot’s participation in the proposed well will be paid for by Eni.
Chariot chief executive Larry Bottomley said: “We are pleased to have satisfied all conditions precedent and welcome Eni as the operator of the Rabat Deep acreage.
"This agreement continues to demonstrate Chariot's ability to deliver on its strategy of securing third-party validation through partnering, and we are excited that we will now take one of our priority targets through to drilling.
“Retaining a 10% equity interest in this well has the potential to create transformational value in the success case due to the large scale prospective resources, excellent contract commercial terms and robust economics.
“Success will also materially de-risk other targets we have identified within our neighbouring Mohammedia permits in which we hold a 75% interest."