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Chariot unit gets approval for farm-out deal with BP in Namibian block

EBR Staff Writer Published 02 February 2012

Enigma Oil & Gas Exploration, a unit of Chariot Oil & Gas, has obtained full approval from the Ministry of Mines and Energy in Namibia for its farm-out agreement with BP in block 2714A.

As part of the farm-out deal, BP has committed to cover Chariot's cost of drilling the first exploration well in this block as well as past costs incurred, which have now been received.

As a result, Enigma now holds a 25% interest in the Southern Block 2714A, while Petrobras and BP hold a 50% and a 25% stake, respectively.

The block currently has 11 identified prospects, one of which - Nimrod - is due to be tested in the second half of this year with the drilling of the Kabeljou-1 exploration well.

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