Chariot receives approval for Mauritanian farm-out deal

Cairn has paid Chariot US$26mn for 3D seismic data and other costs. (Image source: Chariot Oil & Gas)Cairn has paid Chariot US$26mn for 3D seismic data and other costs. (Image source: Chariot Oil & Gas)A farm-out deal between Chariot Oil & Gas and Cairn Energy for Block C19 offshore Mauritania has been approved by the country's Ministry of Hydrocarbons

The farm-out agreement was signed between Chariot and Capricorn Mauritania, a wholly owned subsidiary of Cairn.

As part of the agreement, Cairn committed to pay approximately US$26mn for the costs of 3D seismic data acquired by Chariot on the block and for other back costs incurred.

Chariot now holds a 55 per cent stake and operatorship in the block, Cairn holds a 35 per cent equity interest and the Société Mauritanienne des Hydrocarbures (SMH) retains 10 per cent as a carried interest.

A resource update will be published in the first quarter of 2014, according to Chariot.

Drilling planning and the evaluation of partnering options will begin afterwards.

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