Competent Person’s Report (CPR) Results

Source: www.gulfoilandgas.com 10/28/2010, Location: Africa

Chariot Oil & Gas Limited, the Africa focused oil and gas exploration company, is pleased to announce the results from its independent Competent Person’s Report (“CPR”) from Netherland Sewell & Associates Inc. (“NSAI”) which reports a gross P50 unrisked prospective resource volumes of 9.03 billion barrels with a gross mean unrisked prospective resource volumes of 10.08 billion barrels for its 4 licences offshore Namibia. This compares with and supports Chariot’s internal gross mean unrisked prospective resource figure of 10.06 billion barrels, as announced in its resource update on 6 September 2010.

Highlights: • Gross mean risked resource potential of 1.13 billion bbls (Net to Chariot - 0.85 billion bbls) • Chariot determines an Expected Monetary Value (“EMV”) of £4.6 billion (P50) – corresponding to £5.98/bbl (US$9.27/bbl) per net risked bbl • Probabilities of Success marginally higher – average up from 10.7% to 11.3% • Underpins investment case and supports the excellent work undertaken by Chariot’s in-house technical team

The CPR was independently compiled by industry specialist Netherland Sewell & Associates Inc. and this corroboration of volume potential is both a strong endorsement of work undertaken by Chariot to date and underscores the significant value held within the Company’s licence areas. NSAI performed evaluation work on the original CPR undertaken for Chariot at the time of its admission to trading on AIM in May 2008 and is highly regarded in its field for work of this nature.

As part of the new CPR, NSAI undertook a geologic risk assessment on the 11 prospects and 6 lead inventory as identified by Chariot and conducted an independent review of the individual prospect and lead risking. NSAI’s risking was slightly improved from the Chariot risking in that the average Probabilities of Success increased from 10.7% to 11.3%. In addition, NSAI commented “Chariot is currently conducting 3-D seismic analysis, and we believe the results of this analysis may further reduce prospect risk”. The results of this analysis are expected to be completed during the 4th Qtr of 2010.

On receiving the report, the Company has calculated a total risked EMV of £4.6 billion, equivalent to £5.98 / bbl (US$9.27/bbl). This is the first time that an EMV has been placed on the assets to date.

As noted in the NSAI report, “Chariot’s technical evaluation and documentation are comprehensive and high quality,” and it is a testament to the work that has been undertaken to date that resource figures similar to Chariot’s own calculations were generated by a third party. Please see table below for a breakdown of the key figures from the CPR.

Paul Welch, CEO of Chariot commented: “I am delighted to report that the CPR has confirmed our previous resource estimates and has also provided a representative value for our assets. The validation of our resource potential not only consolidates our investment case but is also indicative of the excellent work carried out by our in-house technical team. The risking and subsequent value that is now attributable to our assets underpins our conviction that Chariot continues to offer huge upside potential.”


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