Chariot drops heavily as nerves heighten on Nimrod prospect – releases RNS in response to share price movement

Update – RNS just released – 

Chariot Oil & Gas Limited

Response to Share Price Movement

Chariot Oil & Gas Limited (AIM: CHAR), the independent Africa focused oil and gas company, notes the recent fall in the share price.

As announced on 27 July 2012, the drilling of the Kabeljou exploration well on the Nimrod prospect has commenced and operations are continuing. The results of the well are not yet known. Once the well has reached TD and the results have been logged a further announcement will be made.

Chariot Oil & Gas is having quite a day today. After rising strongly at the open, it is currently down almost 20% at 110p as expectations ebb and flow for the Nimrod prospect well – the second well in Chariot’s 4 to 5 well drilling programme offshore Namibia.

The Kabeljou (2714/6-1) exploration well using the Ocean Rig Poseidon drill ship was spudded at the end of July and drilling and logging operations were expected to take approximately 60 days I.e. end September.

It may be the classic AIM tree shake, but it seems unlikely that Chariot are anywhere even close to announcing a result from the well. There are plenty of rumours of gas shows but, with this being a 3,350 metre drill, it seems unlikely that they will have reached target depth yet.

One to watch, could be an elephant of a field! Or not!

2 day intra day chart

Contrarian Investor UK