London-listed Chariot Plc has moved swiftly to raise approximately $20 million through an equity placing and subscription, seeking to part-finance a strategic entry into Angola’s offshore oil production — a deal that could transform the Africa-focused company’s near-term revenue profile.
Chariot is working alongside Shell Trading and Etu Energias to support Etu’s acquisition of a working interest in Blocks 14 and 14K offshore Angola, assets currently producing around 8,000 barrels of oil per day. In exchange for providing the initial funding, Chariot will receive economic exposure equivalent to up to 4,000 bopd from the acquired interest — effectively buying itself a production income stream without a direct working interest.
The fundraising comprises a placing and subscription totaling roughly $20 million net of expenses, with an additional open offer capable of raising up to $4 million more. Shell Western Supply and Trading is separately providing an acquisition financing package of up to $170 million, to be repaid through future offtake barrels. Proceeds from Chariot’s raise will cover its portion of the acquisition financing, transaction costs, and working capital needs.
The transaction remains subject to customary regulatory approvals and finalization of transaction terms. For Chariot, the deal marks a pivotal push into producing upstream assets and immediate cash flow, accelerating its expansion beyond its traditional project-development model.
Source: worldoil.com