Broker snap: A disappointing year for Chariot, says Seymour Pierce

10th Sep 2012 10:12

Seymour Pierce has retained its 'sell' recommendation for AIM-listed oil and gas group Chariot Oil and Gas, which plummeted on Monday morning after revealing that it has plugged and abandoned its Kabeljour exploration well, offshore Namibia.Logging results at the well on the Orange basin indicated that no commercial hydrocarbons had been found."We have been long-term 'sellers' of Chariot since our February initiation, highlighting the under explored nature of their acreage. We also pointed to the optimistic chance of success estimate prior to drilling," said Seymour's Sam Wahab.Wahab said that the Kabeljou result, as well as the setback at Tapir South, "concludes a disappointing year for Chariot following heavy initial fundraising." "Nevertheless, whilst we see a large sell down in the share price this morning, it is important to note that the company was carried for the Kabeljou well (through its partners Petrobras and BP) therefore we do not see the price falling below Chariot's net cash balance (31p/share)."The shares, at 10:05, were down 62.34% at 37p.BC?