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Chariot Oil & Gas Ltd (LON:CHAR) report: CPR by Netherland Sewell confirms 10bnbbl volumes

Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Netherland Sewell have done an independent review which confirms the gross mean unrisked prospective volumes of 10.06bnbbl

- Gross mean risked resource potential of 1.13bnbbl (Net to Chariot - 0.85 bnbbls)

- The CoS is marginally higher at 11.3% v managements figures of 10.7% with improved figures in the North which Chariot has a 100% stake in

- For the first time Chariot has calculated an Expected Monetary Value (EMV) for the assets which they asses at ?4.7bn or $9.27/bbl

- We are encouraged by the EMV and in particular the dollar/barrel metric that has been calculated. In out initiation note we had a range of $3.21/bbl - $11.43/bbl with a weighted average of $10.15/bbl

- Furthermore, the increase in the overall CoS as determined by Netherland Sewell provides credibility to the work and estimates provided by management to date

- We were not expecting any update on the farm out, however this report should support Chariots case for valuation in comparison to the first farm out with Petrobras