UNLOCKING AFRICA’S OIL & GAS POTENTIAL -...

www.chariotoilandgas.com1

September 2010

UNLOCKINGAFRICA’SOIL & GASPOTENTIAL


Disclaimer and Forward Looking Statements

These Presentation Materials do not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any

securities in the Company nor shall they or any part of them form the basis of or be relied upon in any manner or for any purpose whatsoever.

These Presentation Materials must not be used or relied upon for the purpose of making any investment decision or engaging in an investment activity and any

decision in connection with a purchase of shares in the Company must be made solely on the basis of the publicly available information. Accordingly, neither the

Company nor its directors makes any representation or warranty in respect of the contents of the Presentation Materials.

The information contained in the Presentation Materials is subject to amendment, revision and updating in any way without notice or liability to any party. The

presentation materials contain forward-looking statements which involve risk and uncertainties and actual results and developments may differ materially from those

expressed or implied by these statements depending on a variety of factors. No representation or warranty, express or implied, is made as to the fairness, accuracy

or completeness of the information or opinions contained herein, which have not been independently verified.

The delivery of these Presentation Materials shall not at any time or in any circumstance create any implication that there has been no adverse change, or any

event reasonably likely to involve any adverse change, in the condition (financial or otherwise) of the Company since the date of these Presentation Materials.

The Presentation Materials are confidential and being supplied to you for your own information and may not be reproduced, further distributed, passed on, or the

contents otherwise divulged, directly or indirectly, to any other person (except the recipient‟s professional advisers) or published, in whole or in part, for any purpose

whatsoever. The Presentation Materials may not be used for the purpose of an offer or solicitation to subscribe for securities by anyone in any jurisdiction.


Presenters

• Appointed CEO in October 2009

• 22 years of Global E&P Experience – 12 years with Shell, 10 years

with Independents (Hunt, Pioneer)

• Spent last 5 years in North Africa primarily focused on S.Tunisia

• Regional Manager of Pioneer, responsible for concessions of Jenin

Nord, Cherouq, Adam (Non-Op), BEK, & Anaguid

• Instrumental in growing production from 1,500 to 30,000 BOPD

(gross) during tenure

• Strong technical background BS & MS degrees in Petroleum

engineering (Colorado School of Mines) & financial skills with an

MBA (SMU)

Paul Welch, CEO


Company Listing & Trading Information

Listing: AIM, London

Ticker Symbol: CHAR

Admission to AIM: 19th May 2008

Offering Size: £45m

No. of Shares in issue: 144m

Current Market Cap: £161m

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23 Feb 2010 15 Mar 2010 04 Apr 2010 24 Apr 2010 14 May 2010 03 Jun 2010 23 Jun 2010 13 Jul 2010 02 Aug 2010 22 Aug 2010

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Chariot Oil & Gas 6 Month - Share Price Performance


Chariot - At a Glance

Enviable position

in Namibia

• One of last frontiers for oil and gas exploration

• 2nd largest acreage position in country – 30,504km2

• Licences in 3 geologically distinct basins

Significant

investment to

date

• Exceeded work programme commitments

• Largest exploration programme undertaken offshore to date

• Exploration spend – US$79MM

Comprehensive

Work Programme

• Undertaken across all blocks of interest totalling:

– 4500 km2 of 3D seismic

– 3000 km of 2D seismic acquisition

Notable success

to date

• Increased gross mean prospective resources from 3.9 billion barrels to

10.1 billion barrels

• Attracted major partner in Petrobras

• Significant share price appreciation

Highly

Experienced

Management

• Strong Technical and Corporate Team

• Wealth of knowledge of both Namibian geology and operating in

country

• Complete skill set in-house, G&G, Engineering & Commercial

Clear Strategy

and Goals

• Continue to develop Namibian assets – unlock huge potential

• Secure further farm-in partners

• Take steps to add nearer term production assets into the portfolio to

balance risk profile – bring first oil date forward


Namibia – Large Acreage Position

• 9 exploration wells have been drilled

across the entire Namibian margin to date

• The Namibian margin is comparable in

area to the North Sea

Namibia vs. North Sea

Large block allocations in Namibia

relative to other oil and gas regions


Chariot/Enigma

– 5th Largest Acreage Holder in West Africa

5th largest

acreage holder in West Africa

0 20,000 40,000 60,000 80,000 100,000 120,000

PetroSA

Ophir Energy

Namcor

Premier

Chariot Oil & Gas

Oranto

Tullow Oil

BHP Billiton

Shell

Sonangol P&P

Canadian Natural Resources

Hyperdynamics

Sungu Sungu Petroleum

Encore Oil & Gas

Arcadia Petroleum

Anadarko

Petrobras

First Australia Resources

Young Energy Prize

Dana Petroleum

Net Block Acreage (km²)

Top 20 acreage holders offshore West Africa

Source: Wood Mackenzie pathfinder database, July 2010Total of 248 companies reviewed.


NAMIBIAN GEOLOGY


Putting Namibia in Geologic Context

• Exploration in the South Atlantic has traditionally has focused on the “Salt Basins”.

• Recent discoveries confirm that prolific source rocks extend both north and south of these salt basins into underexplored

areas such as Namibia

• Geochemical analyses of Kudu gas indicate an over-mature oil prone, lacustrine source rock is the origin of the gas – oil

may be expected from the same source rocks in areas where maturity is lower

Reconstruction of the South Atlantic in the Early Cretaceous –a narrow lake formed between Africa and South America accumulating rich source rocks

10.1


Charge Maturity of Basins

Charge data indicates that Chariot‟s licences are situated in the oil window

Generalized Stratigraphic Column modified from Bray et al 1998.


Chariot’s Position in Namibia

Chariot’s Position:

• 8 offshore blocks, all 100% owned except 2714A (50%

with Petrobras), in 3 geologically distinct basins

8offshore blocks

Completed seismic acquisition programmes:

• Northern Blocks – 1,500km2 of 3D

• Central Blocks – 3,000 line km of 2D

• Southern Blocks – 3,000 km2 of 3D

Resource Potential Identified:

• 11 prospects and 6 leads identified to date

• Un-risked gross prospective resource potential of

10.1 billion barrels


Northern Area (Blocks 1811 A & B)

Proven rich oil prone

Cenomanian/Turonian

Source in well with

associated oil shows

Current Activity

• Source rock extent & kitchen mapping;

• Prospect Inventory Build (reserves and risking)

• Existing Inventory

5 Prospects

2 Leads

Total: 2,257 MMbbls


Northern Area (Blocks 1811 A & B)

N

Draped anticlines

with seismic

Amplitudes

Preliminary

Amplitude

Extractions Show

Brights on Highs

(DHI‟s)


Cretaceous Basin floor fan / channel complexes

Cretaceous Basin

floor fan / channel

complexes

Cenozoic

Cenomanian-

Turonian

source intervalAptian source

interval Barremian synrift

source interval?

Top synrift

Thick sands in Cretaceous of shelf wells

Large fans

mapped in

Cretaceous

Basement

gas

hydrates?

Thick sands in Cretaceous of shelf wells

Thick sands

in Cretaceous

of shelf wells

Central Area (2312 A & B, 2412 A & B North)

Current Activity

• Source rock extent & kitchen mapping;

• Prospect Inventory validation - Completed

• Existing Inventory

3 Leads 4,061 MMbbls


Central Area (2312 A & B, 2412 A & B North)

Lead Mapping produced by Integrating Depth Map (Black Contours)

and Sand Isopach to define Combination Traps

Planned work to mature Leads to Prospects

Potential acquisition of 3D seismic survey, area 2500km2 approx.


Southern Area (2714 A & B)

Current Activity

• Petrobras as Partner with 50% interest;

• Processing PSTM/PSDM over entire cube;

• Sedimentological and Geochemical Analyses;

• Petroleum Basin Modeling;

• Regional Geological and Geophysical Integration.

• Existing Inventory Reminder

16 Leads 2,705 MMbbls

Aptian

Source

Interval

BasementBarremian?

Source Interval

Lower Cretaceous

stratigraphic pinch-

out traps

Upper

Cretaceous basin

floor fans

Sub-Aptian

stratigraphic pinchout

traps - Kudu

Lower

Cretaceous

sands with high

amplitudes

Current Activity

• Petrobras as Partner with 50% interest;

• Sedimentological and Geochemical Analyses;

• Petroleum Basin Modeling;

•Existing Inventory

6 Prospects

1 Lead

Total 3,742 MMbbls


Southern Area (2714 A & B)


Probabilistic Prospective Resource Volumes

Gross attributable to Licence in MMbbls Net attributable to Group MMbbls

Probabilistic Volume Method Low Best High Low Best High Working

Region Status (Monte Carlo Simulation) Estimate Estimate Estimate Estimate Estimate Estimate Risk Interest Operator

P90 P50 P10 Mean P90 P50 P10 Mean Factor (%)*** (%)

North Prospect Tapir N 321 409 514 414 321 409 514 414 11% 100% Enigma

North Prospect Tapir 167 208 255 210 167 208 255 210 11% 100% Enigma

North Prospect Tapir S 126 165 215 168 126 165 215 168 11% 100% Enigma

North Lead Tapir NE 367 500 671 511 367 500 671 511 10% 100% Enigma

North Prospect Tapir S Fan 171 260 383 270 171 260 383 270 13% 100% Enigma

North Prospect Zamba N 39 90 192 105 39 90 192 105 14% 100% Enigma

North Lead Zamba 247 518 999 581 247 518 999 581 15% 100% Enigma

Total Northern Block Oil* 1,845 2,223 2,714 2,257 1,845 2,223 2,714 2,257 100% Enigma

South Prospect A Structural 77 108 150 112 39 54 75 56 18% 50% Enigma

South Prospect B Structural 281 373 484 379 141 187 242 190 18% 50% Enigma

South Prospect C Structural 260 351 460 356 130 176 230 178 18% 50% Enigma

South Lead C Stratigraphic 752 1,107 1,550 1,133 376 554 775 567 10% 50% Enigma

South Prospect G Structural 693 917 1,189 932 347 459 595 466 20% 50% Enigma

South Prospect H Structural 136 188 254 191 68 94 127 96 18% 50% Enigma

South Prospect K Structural 408 602 845 617 204 301 423 309 18% 50% Enigma

Total Southern Block Oil* 3,220 3,718 4,298 3,742 1,610 1,859 2,149 1,871 50% Enigma

Central Lead Klipspringer 902 1,909 3,732 2,153 902 1,909 3,732 2,153 5% 100% Enigma

Central Lead Hartebeest 467 1,220 2,643 1,425 467 1,220 2,643 1,425 5% 100% Enigma

Central Lead Oryx 197 422 836 480 197 422 836 480 5% 100% Enigma

Total Central Block Oil* 2,291 3,855 6,168 4,061 2,291 3,855 6,168 4,061 100% Enigma

Namibia Total Northern, Central and Southern** 7,356 9,796 13,180 10,060 5,746 7,937 11,031 8,189 Enigma

* Total resource numbers are probabilistically summed and therefore the figures do not add arithmetically

** Arithmetic sum of statistical block totals

*** Many of the prospects and leads in the Northern and Southern blocks have multiple horizons with independent chances of success. For example, Tapir North has a

consolidated risk factor of 26% for finding hydrocarbons. The stated risk factors; however, are consistent with the given volumes.


Overall Programme

Current Activity

Securing Additional Blue Chip Partners

Data Room open in London

Summary of Commitments

o Initial Exploration Period:

• Geological and Geophysical Studies – Complete

• Seismic Acquisition

2D Seismic

Commitment: 2500 km

Actual: 3000 km

Difference: +500 km

3D Seismic

Commitment: 700 km2

Actual: 4,500 km2

Difference: +3,800 km2

• Expenditures

Commitment: $29.40 MM

Actual: $79.00 MM

Difference: +$49.60 MM

o Results:

8,536 MMbbls of Resource Potential Identified

Attracted a Blue Chip Major Operator

Significantly raised the oil exploration potential

profile of Namibia

Summary of Commitments

o Initial Exploration Period:

• Geological and Geophysical Studies – Complete

• Seismic Acquisition

2D Seismic

Commitment: 2500 km

Actual: 3000 km

Difference: +500 km

3D Seismic

Commitment: 700 km2

Actual: 4,500 km2

Difference: +3,800 km2

• Expenditures

Commitment: $29.40 MM

Actual: $79.00 MM

Difference: +$49.60 MM

o Results:

10.1 Bbbls of Resource Potential Identified

Attracted a Blue Chip Major Operator

Significantly raised the oil exploration potential

profile of Namibia


PORTFOLIO MANAGEMENT


Development of Portfolio - Strategy

New Business Development Activities Accelerating

• Key priority to introduce cash flows into the Group

Objective:

• Reduce the exploration risk in the portfolio

• Identify undervalued near-producing / producing assets

• Bring „first production‟ date forward

• Lower cost profile as most areas are on-shore

Numerous opportunities identified and under evaluation

• Screened over 80 opportunities to date

• Several in advanced stages of discussion


Production &

Development opportunities

Low risk, exploration &

production opportunities

Higher risk, high value

exploration opportunities

Higher risk, low cost

exploration opportunities

New Venture Search – Africa 2010

APPROACH:

Maximise focus

• High grade countries

• Screen opportunities

Target range of opportunity types

• See map and legend


TRADING COMPARABLES


Trading Comparables – AIM Listed Explorers

CompanyMarket Cap

US$M

Cash

US$M

Debt

US$M

Enterprise

Value

US$M

Unrisked

Net

Prospective

Resources

(MMbbls)

EV/Unrisked

Resources

US$/bbl CoS (%)

Net Risked

Resources

MMbbls

EV/Risked

Resources

US$/bbl

Dominion Petroleum$57.4 $50.0 $28.0 $35.4 1715 $0.02 10% 172 $0.21

Falkland Oil & Gas$261.6 $80.4 $0.0 $181.2 3087 $0.06 10% 309 $0.59

Borders & Southern$479.1 $170.7 $0.0 $308.4 1000 $0.31 10% 100 $3.08

Desire Petroleum$487.4 $88.0 $0.0 $399.4 3000 $0.13 10% 300 $1.33

Africa Oil$80.1 $36.1 $1.3 $45.3 5723 $0.01 10% 572 $0.08

BPC Ltd$37.0 $1.3 $0.0 $35.7 5500 $0.01 10% 550 $0.06

Energulf Resources$19.4 $3.3 $0.0 $16.1 300 $0.05 10% 30 $0.54

Tower Resources$48.1 $1.9 $0.0 $46.2 1700 $0.03 10% 170 $0.27

Chariot Oil & Gas (120p)$262.0 $16.2 $0.0 $245.8 10060 $0.02 10% 1006 $0.24

AVERAGE $0.07 $0.71

Chariot Oil & Gas (335p)$739.8 $24.7 $0.0 $504.5 10060 $0.07 10% 1003 $0.71

Chariot still significantly undervalued relative to its peers

Figures as of 06.09.2010


$2

$20

$200

$2,000

200 2,000 20,000

Ente

rpri

se V

alu

e (

$m

)

Unrisked Prospective Resources (MMbls)

Trading Comparables - AIM Listed Explorers

Figures as of 06.09.10

Chariot-335p

Chariot-120p

Average EV/Resource: US$ 0.07/bblAbove the line = more expensiveBelow the line = less expensive Desire

Falklands

Africa Oil

BPC

Tower

Energulf

Borders & Southern

Dominion


Summary

Significant Progress Made • Completed current work programme commitments

• Remain debt free with cash on hand

• Moving into an exciting period in development cycle

• Northern and Southern Blocks - Completion of interpretation of the 3D seismic

• Gross prospective resources increased to 10.1 Bbbls

Namibia – Going Forward

• Full CPR completed 4th Qtr

• Dataroom open - Multiple expressions of interest received to review processed 3D seismic data

• Expect to secure 1 additional farm-in partner in 2010 (likely 4th Qtr)

Strategy – Going Forward

• Maximise value from position in Namibia and mature prospects for drilling

• Reduce exploration risk and bring first oil production date forward

Share Price – Still Undervalued Relative to Peer Group

High impact offshore potential in Namibia to be underpinned by development and

producing asset acquisitions


APPENDICES


Chariot Oil & Gas Limited (incorporated in Guernsey) +

Chariot Oil & Gas Invests (Namibia) Limited

(incorporated in Guernsey)

Enigma Oil & Gas Exploration (Pty) Limited

(incorporated in Namibia)

Company History and Corporate Structure

2007:

– Guernsey based Company formed to acquire 2 exploration businesses with Namibian licences

– Initial exploration work commences

2008:

– Listed on AIM in May, raised £45million

– Reprocessing produces 1 prospect, 22 leads

– 2D and 3D seismic acquisition programmes commenced across all offshore blocks

2009:

– Petrobras farms into Block 2714A

– Completion of seismic acquisition programmes

– Appointment of CEO, Paul Welch, from Royal Dutch Shell, Hunt Oil & Pioneer Natural Resources

– Progressed additional opportunities

2010 to date:

- Completed acquisition of 3,000 Km of 2D seismic and 4,500 Km sq of 3D

- Dataroom opened in London

- Increase in gross prospective resources, up 62% to 8.5 Bbbls

- First Renewal Phase approved

- 11 Prospects and 6 Leads identified from 3D datasets

- Further increase of gross prospective resources up 18% to 10.1 Bbbls

Enigma is ultimately wholly owned and controlled

by Chariot. Enigma is the operator and holds the

petroleum agreements and licences.

+ Quoted Investment Company


Adonis Pouroulis, Non-Executive Chairman

• Extensive experience in the exploration and mining sector, primarily on the African continent

• Expertise lies in the discovery and exploration of natural resources and bringing them into production

• Founded and listed Petra Diamonds (AIM: PDL) in 1997 – now the largest diamond company on AIM

James Burgess, Commercial Director

• 20 years working in broking sector in London working with Hoare Govett which is now part of RBS.

• Set up Everett Financial Management in 1992 which he sold in 2003

• Involved in the fund raising for and listing of a number of companies in the energy and resource sectors on AIM

Heindrich Ndume, Country Director, Namibia

• Namibian national with wide-ranging mining exploration experience throughout sub-Saharan Africa

• Developed Namibia‟s mining & energy strategies including National Energy Council Secretary and World Energy Council

• Representative for the Namibian Ministry of Mines & Energy

George Canjar, Non-Executive Director

• 30 years with Shell and then Carrizo supervising exploration & seismic operations; deep offshore W. Africa and the Gulf of Mexico

• Expertise in the exploration and development of E&P projects and bringing them into production

• Specific expertise in deal structuring, portfolio development, risk analysis and strategic modelling.

• Broad experience in the E&P sector as well as a variety of corporate activity

Philip Loader, Non-Executive Director

• Over 27 years experience in the upstream oil and gas industry, core strengths in international exploration and business development.

• Currently Senior Vice President of Exploration for Mubadala Oil & Gas, accountable for their exploration inventory across the Eastern

Hemisphere

• Spent over 10 years with Anadarko Petroleum Corporation in a variety of positions, latterly as Vice President of International Exploration

• Worldwide exploration experience; responsible for discoveries in Tunisia, Algeria and Equatorial Guinea

Robert Sinclair, Non-Executive Director

• Partner and Managing Director of Artemis Trustees Limited, a Guernsey-based fiduciary services group

• Over 37 years experience in finance and accountancy, of which 27 have been spent in the Guernsey financial services industry

• Extensive experience of offshore trusts and corporate entities and financial planning for both individuals and corporations

Other Board Members


Matthew Taylor, Director of Exploration

• A petroleum geologist with 30 years of industry experience

• Began his career with BP Exploration and has held senior geologist posts with BHP Petroleum and Triton Energy

• Consulted and advised a range of clients including Chevron, Dana Petroleum and Marathon Oil on New Venture projects, both

identifying targets and providing detailed prospect and basin evaluations and opportunity assessments.

Played a major role in the acquisition of exploration acreage in Namibia, Oman, Senegal, Togo and Western Europe for Hunt Oil

Julia Kemper, Senior Staff Geophysicist

• Specialises in the development, interpretation and evaluation of 2D and 3D seismic programmes as well as the assessment of

new opportunities

• 25 years of experience in the oil and gas industry, worked as a geophysicist for both BP and Shell and more recently as senior

geophysicist with Hunt Oil and MND Exploration & Production

• Has been involved in all aspects of geophysical work throughout her career and has been a formative part of, and had key roles in,

New Venture divisions

Martin Richards, Chief Reservoir Engineer

• Over 30 years in the oil and gas industry with an in-depth experience of all aspects of subsurface management, reservoir

engineering and petroleum economics

• Worked as both a Chief and Senior Reservoir Engineer for a variety of companies, including Petro-Canada, Suez Oil Company,

Deminex and Mobil

• Particular expertise in operational and functional reservoir management, leading multi-disciplinary reservoir studies, asset

management and reserves reporting - numerous exploration and drilling successes

Alex Green, Commercial Manager

• Over 20 years experience in business development and commercial and financial analysis in the upstream oil and gas sector

• Previously worked for Clyde Petroleum, BG Plc, Paladin Resources and Stratic Energy

• Wide range of experience in developing corporate business models, evaluating acquisition opportunities and negotiating

successful joint ventures

Senior Management


Company Information

Number of shares in issue: 144,330,245

Fully diluted: 149,820,245

NOMAD: Ambrian Partners Limited

Joint Brokers: Ambrian Partners Limited

: RBC Capital Markets

Broker Target Price: 262p (Ambrian June „10)

Significant Shareholders: %

Westward 15.8

Protech Namibia 14.8

Citigroup 13.7

Generali 5.5

Baillie Gifford 5.0

Libra Advisors 3.4

Board 1.9


Namibia - Licence Details of Chariot Blocks

Summary of licence period terms:

Exploratory 4 year period – evaluation geology & geophysics

Two, 2 year renewal periods – drilling & drilling evaluation

Asset Licence Operator Interest % Status Phase Licence Renewal Date Licence Area Km²

Offshore Basins

Block 1811A&B 14 Enigma 100 Exploration 27 October 2012 5,481

Block 2312A&B 19 Enigma 100 Exploration 31 August 2011

N/2 of Block 241A&B 19 Enigma 100 Exploration 31 August 2011

Block 2714 A 20 Enigma 50 Exploration 31 August 2011 5,481

Block 2714 B 15 Enigma 100 Exploration 27 October 2012 2,741

16,801


Namibia – Investment Climate

GDP: US$9.145 billion (2009 estimate)

Annual Growth: 0.7% (2009 estimate)

Population: 2.1 million

Inflation: 8.8% (2009 estimate)

Major Industries: Mineral production, game and cattle

ranching, fishing, tourism.

- Mining is 2nd largest industry (20% of GNP): copper,

diamonds, uranium, zinc

Major trading partners: South Africa, UK, Spain, Japan,

China and USA.

Taxation of oil production:- 5% State Royalty / 35%

corporation tax / no capital gains

Existing presence: BHP, Anglo, Areva, DeBeers, Rio Tinto

• Stable democracy

• Good relations with neighbours

• Encouraging international foreign investment

• Country risk profile of BBB = Brazil and South Africa

Source: CIA Factsheet / The Economist


West African – Fiscal Terms Comparison

Source: Wood Mackenzie – July 2010

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Government Share - %

UNLOCKING AFRICA’S OIL & GAS POTENTIAL -...

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