A farm-out deal between Chariot Oil & Gas and Cairn Energy for Block C19 offshore Mauritania has been approved by the countrys Ministry of Hydrocarbons
The farm-out agreement was signed between Chariot and Capricorn Mauritania, a wholly owned subsidiary of Cairn.
As part of the agreement, Cairn committed to pay approximately US$26mn for the costs of 3D seismic data acquired by Chariot on the block and for other back costs incurred.
Chariot now holds a 55 per cent stake and operatorship in the block, Cairn holds a 35 per cent equity interest and the Société Mauritanienne des Hydrocarbures (SMH) retains 10 per cent as a carried interest.
A resource update will be published in the first quarter of 2014, according to Chariot.
Drilling planning and the evaluation of partnering options will begin afterwards.
