The farm-out signed between Chariot Oil & Gas Ltd.’s wholly owned subsidiary, Chariot Oil & Gas Investments (Morocco) Ltd., and a wholly owned subsidiary of Woodside has been approved for the Rabat Deep Offshore permits I-VI by the Moroccan authorities, according to a Chariot press release.

As part of the farm-out agreement, Woodside committed to pay 100% of the 3-D seismic acquisition and processing costs incurred across the license by Chariot and other back costs, and in addition the company agreed to carry Chariot on future work up to an agreed cap, including a multibeam side-scan sonar and seabed coring survey.

A substantial part of these funds has now been received. The remaining balance of these funds is anticipated to be received during first-quarter 2015, which is when the multibeam side-scan sonar and seabed coring survey is expected to take place.

Chariot remains operator of the license with a 50% equity interest, with the Office National des Hydrocarbures et des Mines retaining a 25% carried interest and Woodside holding 25%.

As part of the agreement, Woodside has an option to acquire a further 25% of Chariot’s equity and become operator of the license in return for a full well carry up to an agreed cap consistent with other farm-outs concluded in the area.