Morocco has some of the most competitive domestic gas prices offered with a commercial contract when rated in the energy industry. With consideration of how high gas prices have risen around the world and the fact that the energy market continues to grow rapidly, Morocco leads in comparison. The recent Competent Persons Report on Additional Prospects, taken on behalf of Chariot Oil & Gas company for it’s Moroccan ‘Lixus’ Offshore License is significant. The report made available on September 18, 2019, by Netherland Sewell & Associates Inc. (NSAI), indicated that there is a potential of five oil wells “contributing towards an audited total remaining recoverable resource in excess of 2 Trillion Cubic Feet (Tcf).”
The report also indicates that Morocco has a stronger potential for gas exploitation than was previously thought. Moroccan current gas prices average between 9.0 – 10.5 $/mscf. Aside from gas, the bulk of its power generation comes from imported coal and fuel oil. Moroccan energy demand is expected to double between 2015 and 2030 making the news announcement exciting for both Morocco and potential outside investors.
These five gas wells are discoveries made in addition to Chariot’s current two well locations in Morocco. Their Lixus license covers an area of approximately 2,390km2 where their Anchois 1. The Anchois 1 area offers the potential for high rate wells at a low-cost development. Lixus also has two licensees in the Mohammedia and Kenitra Area, near Rabat.
Chariot Oil & Gas hold 75% ownership in Lixus. It aims to discover and access the potential in underexplored regions of the Atlantic margin.