Chariot raises $15 Million in funds for a new onshore gas drilling in Morocco

Chariot, a London-listed, Africa-focused energy company, announced on Tuesday it has raised $15 million (£11.7 million) for its onshore drilling operation in Morocco.

The company said the funds were raised through the placement and subscription of 89.6 million shares at an issue price of 14 pence per share, according to a statement from Chariot posted on the London stock exchange.

Chariot said it plans to use the proceeds from the fundraise for near-term onshore drilling and development planning on a new onshore Moroccan license, which it said it expects to be awarded imminently, as well as “new ventures and working capital.”

Commenting on the news, Adonis Pouroulis, CEO of Chariot, said: “We are pleased to announce the successful completion of our oversubscribed Placing and Subscription, subject to shareholder approval at the upcoming General Meeting.”

Chariot plans to hold a general meeting on August 2.

“We look forward to reporting on our drilling program on the new onshore Moroccan license, to be awarded, as well as our partnering process, other offshore activities, and further value generative corporate developments over the rest of 2023 and beyond,” he added.

Chariot is also seeking to raise a further £2.3mln through a separate share sale to qualifying existing shareholders via an open offer share sale.

Chariot currently holds a drilling license under the Lixus offshore license near Lareche, Morocco. The company holds a 75% stake in the drilling operations, while Morocco’s National Hydrocarbons and Mines Office ONHYM holds 25%.