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Chariot Oil & Gas Ltd (LON:CHAR) report:Pre Close Update

Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Prior to releasing its results for the period ending August 31st 2010 Chariot provides further updates on its Namibian assets

- 3D seismic data has been received from the Northern (1811A&B) and Southern (2714A&B) blocks and interpretation has been underway over the past several weeks

- Once the seismic data has been interpreted and analysed Chariot intends to publish an update on its resources for these blocks

- Chariot also plans an engaging a third party consultant to develop a Competent Persons Report (CPR) to review all findings to date and to publish in Q4

- The farm-out process is ongoing. Significantly, as 3D seismic data is available to data room attendees, Chariot reports that new visits and revisits have increased substantially. Chariot reports that its data room is fully booked for the next several months

- Clearly having a data room fully booked with interested parties is positive. Although the new entrants may have held off until now knowing that 3D data would be available it is another positive factor in the farm-out process. Recall that Chariot has its own criteria before it allows entry to the data room including having a market cap of $1bn

- When the 3D interpretation is published, we would anticipate greater changes to the Chance of Success (CoS) than we would to prospective resources and perhaps even potential drilling locations

- We remain bullish on the company and its prospects. There are now a number of near term catalysts which should support the share price