Energean enters Morocco markets through Chariot deal

(Sharecast News) - Energean announced its entry into a new venture offshore Morocco on Thursday by farming into Chariot's acreage. The FTSE 250 company said the move included the acquisition of 45% of the Lixus licence, with the option to increase its stake to 55% following drilling results and 37.5% of the Rissana licence.

In addition to those interests, Energean said it would assume operatorship of both licences.

The focal point of the partnership was the Anchois gas development, boasting 18 billion cubic metres of gross gas resources.

Energean said the development was strategically positioned close to existing infrastructure, facilitating gas supply to both domestic and international markets.

Energean would provide an upfront cash consideration of $10m as part of the agreement.

An appraisal well was scheduled for 2024, aiming to tap into an additional 11 billion cubic metres of gross unrisked prospective resources, which would be integrated into the Anchois development.

Energean said it had also committed to carrying Chariot for its share of pre-final investment decision (FID) costs, with the assurance of recovering these costs from Chariot's future revenues.

"This is an exciting step in the next stage of our development, one that can only enhance our position as the pre-eminent independent natural gas producer listed in London," said chief executive officer Mathios Rigas.

"These assets are particularly attractive as we understand the core geological, commercial and political drivers of the region, we have a track record in developing material gas resources prioritised for the domestic market, and they are a complementary fit with our broader portfolio, not least the potential for surplus supply to other markets.

"We look forward to working with our partners Chariot and ONHYM, and developing an outstanding resource for the benefit of all parties, including Morocco and its people."

At 0823 GMT, shares in Energean were down 3.93% at 989.5p.

Reporting by Josh White for Sharecast.com.