Shares in Canadian Overseas Petroleum (COPL) and Chariot (CHAR:AIM) gained 36% to 27.75p and 37% to 10.2p respectively as both announced major discoveries.
Chariot’s Anchios-2 well offshore Morocco discovered significant natural gas accumulations, a result which acting chief executive Adonis Pouroulis said ‘materially exceeds’ internal expectations.
The Stena Don rig will now move to drill the historic Anchois-1 gas find with the aim of adding another potential production well to bolster the development of the field.
SIGNIFICANT OIL DISCOVERY
Meanwhile, Canadian Overseas Petroleum unveiled a significant light oil discovery in Wyoming amounting to 1.5 billion to 1.9 billion barrels of oil in place. The total estimated oil or gas in a reservoir - which includes that which can and cannot be produced - is known as the oil or gas ‘in place'. The ‘recovery factor’ refers to the proportion of this oil or gas which can be brought to the surface.
This will be determined after further drilling to exploit the find which the company says will commence later this year.
Chief executive and president Arthur Millholland commented: ‘This is a significant oil discovery and the size of the upside at our Wyoming asset was a surprise to us all. Conventional light oil discoveries of this magnitude have been rare in continental North America for years if not decades.’
‘TRANSFORMATIONAL GAS STRATEGY’
FinnCap analyst Jonathan Wright, commenting on the Chariot announcement said: ‘Excellent news for Chariot, who - after a number of drilling disappointments over the years - has seen its revamped, lower risk, transformational gas strategy come good at the first asking.
‘The Anchois-2 appraisal/exploration well on the Lixus licence, offshore Morocco, has come up trumps, significantly exceeding expectations with multiple high-quality gas reservoirs encountered.
‘Further analysis will be needed to fully understand the positive implications of the well on the gas resources of the expanded Anchois field and its development scale.’
Wright adds that he has doubled his risked net asset value for the company to 54p per share in the wake of the find.
