Chariot has confirmed that a subsidiary of Etu Energias S.A has signed a sale and purchase agreement (SPA) to acquire a 20% working interest in Block 14 and a 10% working interest in Block 14K, offshore Angola Etu Energias S.A is a 100% Angolan-owned exploration and production company.
Chariot has part-financed this Acquisition through providing deposit funds of US$12m and additional financing related transaction costs, and in doing so has secured exposure to the economics associated with material oil production following completion of the Acquisition
Shell Western Supply and Trading Ltd has provided an acquisition financing package in return for future offtake barrels. These facilities will be used to finance the final consideration payable on completion, which will be reduced by interim period adjustments
The funding combination ensures that the Acquisition is fully financed and the Chariot Funds will be repayable from future cash flows from the asset, after servicing the Shell Facilities
In addition, Chariot will be economically exposed to long-term future cashflows equivalent to current production of circa 4,000 bopd and an equivalent indicative asset value of net NPV10 in excess of US$100 million at a US$60/bbl oil price. The completion of the Acquisition is subject to regulatory approvals with closing expected in H2 2026
Adonis Pouroulis, CEO of Chariot commented: “Thisis a key step in the transaction processfor our Angolan partners, Etu Energias. We are delighted to have raised the funds and to be able to support them in this acquisition, alongside the significant financing support from Shell Trading. We look forward to completion later this year and working alongside both parties going forward. This is a new chapter for Chariot as we now have economic exposure to material production in one of the best oil provinces in the world. With the future cashflows this deal brings, we are putting valuable oil barrel income on the book and we look forward to growing this out from here.”
There are material upsides on Block 14, notably further development of the PKBB discovery, as well as additional neighbouring discoveries that can utilise existing production and processing infrastructure. Block 14K produces circa 1kbopd on a gross basis and this licence does not expire until 2030. Current producing reserves from the assets are estimated to be 93MMbbls.
