Chariot Oil & Gas Limited 
Annual Report and Accounts 2011
An operational year ahead Chariot Oil & Gas Limited is an 
independent Africa focused oil and 
gas exploration company with four 
licences covering eight blocks spanning 
30,504km² offshore Namibia. These 
licence areas are held by Enigma Oil & 
Gas Exploration (Pty) Limited, a wholly 
owned subsidiary of Chariot. 
This year the Company has made significant progress in 
preparation for the operational year ahead. We continue 
to look to develop our existing assets, consider additional 
farm-in options and evaluate other opportunities as we 
commence our drilling campaign offshore Namibia.
A strong case for investment:
Frontier region 
k   Significant acreage position in one of the few remaining West African frontier 
regions for oil and gas exploration
k   Eight blocks over three geologically distinct basins
k   Estimated gross mean un-risked prospective resource volume  
of 20.0 billion barrels of oil
High quality portfolio
k   Significant investment of US$108 million; largest exploration programme  
undertaken offshore Namibia to date
k   Attracted BP , Petrobras and PGS as farm-in partners; discussions ongoing 
with potential additional partners
k   Experienced technical and corporate team
Huge growth potential
k   Drill ready inventory: 15 prospects, 16 leads, two wells to be drilled 2012
k   Further two to three wells to be drilled in 2013
k   Success will result in new African oil province
k   Well funded – net cash position ~US$175 million
k   Looking to secure additional African opportunities Company Overview
01 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Business Review Corporate Governance Financial Statements Company Overview
Company Overview
Highlights 01
Chariot at a glance 02
Chairman’s statement 04
Business Review
Chief Executive’s review 06
Review of operations 08
Corporate Social Responsibility 12
Corporate Governance
Board of Directors 14
Senior Management Team 16
Directors’ remuneration report 18
Corporate governance statement 20
Report of the Directors 21
Financial Statements
Independent auditors’ report  24
Consolidated statement 
of comprehensive income 25
Consolidated statement 
of changes in equity 26
Consolidated statement 
of financial position 27
Consolidated cash flow statement 28
Notes forming part of 
the financial statements 29
Advisers IBC
Highlights during and post period
k  Placing completed April 2011, raising US$140 million (net), further placing 
in March 2012 raised ~US$47 million (net)
k  Increased gross mean un-risked prospective resource potential from 13.9 billion 
barrels to 20.0 billion barrels (12.5 billion barrels net to Chariot), 15 prospects 
and 16 leads
k  Farm-out agreements signed with BP in Southern Block 2714A and PGS 
in Central Blocks 2312A&B and N/2 of 2412A&B 
k  Petrobras elected to take up operatorship in Block 2714A; well location agreed 
by all parties
k  3,500km² 3D Geostreamer seismic acquisition programme carried out with 
PGS on the Central Blocks, completed February 2012 
k  Drill rig contract signed with Maersk for a one well drilling slot on Tapir South 
(1811/5-1), spud 5 April 2012
k  Debt free, with cash position of US$129.0 million at 31 December 2011, 
~US$175 million post placing March 2012
Contents
k  To learn more about our 
developments this year read 
the Review of operations 
on page 8 1811A
ENIGMA
1811B
ENIGMA
NAMIBIA
Central Blocks 2312A&B 
NAMIBIA
2312A&B ENIGMA
(PGS 10%)
2412A&B (NORTHERN HALVES)
ENIGMA
(PGS 10%)
02 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Ownership %
90%
k  Located in the Walvis Basin
k  Cover an area of 16,801km²
k  Volume potential 8.3 billion barrels 
of oil based on 2D seismic data
k  3,500km² of 3D seismic data acquired, 
processing and interpretation due to be 
complete H2 2012
k  14 leads identified to date – water depth 
at location 500–3,000m
2012 Target
Process and interpret 3D seismic data H2 2012, 
provide interim target definition and resource 
update in Q4 2012 and start data room process. 
k find out more about our sites on page 10
k Located in the Namibe Basin
k Cover an area of 5,481km²
k Volume potential 2.8 billion barrels of oil
k  1,500km² of 3D seismic data acquired, 
processed and interpreted
k Four prospects, two leads identified to date 
– water depth at location 700–3,000m
k Tapir South prospect, part of the Tapir Trend, 
commenced drilling April 2012 with Maersk 
Deliverer – total depth 5,100m TVDss
2012 Target
Drill Tapir South Q2, analyse results.
Chariot’s four to five well drilling campaign 
commenced in the Northern Blocks with 
Tapir South (1811/5-1), spud 5 April 2012. 
Ownership %
100%
k find out more about our sites on page 10
Chariot is entering a new phase of 
development with the initiation of its 
drilling campaign whilst continuing to 
develop its portfolio and balance risk. 
Chariot at a glance
Our strategy  
and goals
Chariot’s key focus is to develop its current 
assets through to production, while 
seeking further farm-out agreements and 
introducing other opportunities to the 
portfolio – minimising risk and maximising 
value to shareholders. This can be 
summarised in four points:
PGS farmed into the Central Blocks for a 10% 
interest, in exchange for covering the costs of 50% 
of 3,500km² of a 3D seismic survey (August 2011) 
which was carried out and completed in 
February 2012. Resource update is anticipated 
once the data is interpreted H2 2012.
Our locations
Central Blocks 2312A&B 
and N/2 2412A&B
Northern Blocks 1811A&B NAMIBIA
2714B ENIGMA
2714A ENIGMA
(PETROBRAS 30% BP 45%)
Company Overview
03 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Business Review Corporate Governance Financial Statements Company Overview
2714A: Petrobras (30% – farmed in 2009) and 
BP (45% – farmed in 2011). Kabeljou (2714/6-1) 
well on the Nimrod prospect is due to be drilled 
Q3 2012, operated by Petrobras, with Chariot’s 
costs of the well carried by BP. 2714B: remains 
100% Chariot.
Ownership %
25%
k find out more about our sites on page 10
k  Located in Orange Basin
k  Cover an area of 8,222km²
k  Volume potential 9.0 billion barrels of oil
k  3,000km² of 3D seismic acquired, processed 
and interpreted
k  11 prospects identified to date, (including the 
“mega structure”, Nimrod) – water depth at 
location 400–850m
k  Kabeljou (2714/6-1), on the Nimrod prospect 
due to be drilled Q3 2012 – total depth 
3,100m TVDss 
2012 Target
Drill Kabeljou (2714/6-1) Q3 2012, 
analyse results. 
Our strategy  
and goals
1. Develop current assets further through continued geological and seismic evaluation
2. Carry out initial four to five well drilling programme
3. Secure further farm-out agreements
4. Balance current portfolio with new opportunities
Chariot acreage gross
mean unrisked resource 
estimate 20 billion boe
West African Salt Basin
(~25 billion boe)
Kudu gas ﬁeld
more than 1 TCF
Bredasdorp Basin
(oil and gas ﬁelds)
Not to scale
 
Recent large oil discoveries
Recent large 
oil discoveries
Brazillian Salt Basin
(~30 billion boe)
North Falklands
Recent reported 
oil discovery
NAMIBIA
Our locations
Southern Blocks 2714A&B Adonis Pouroulis
Non-Executive Chairman
04 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Chairman’s statement
Over the last ten months the Company 
has worked hard to successfully position 
itself and ensure that it is fully prepared 
for the significant developments that the 
forthcoming year will bring. The team has 
advanced its technical work, identifying 
key areas within our prospect and lead 
inventory to further mature targets 
for drilling. The addition of two new 
international Joint Venture partners 
has not only affirmed the high potential 
of our blocks but also mitigated our 
risk and enabled us to evaluate further 
projects as we seek to develop our 
portfolio. This, combined with our strong 
financial position, stands us in good stead 
as we look to initiate our four to five well 
drilling campaign with the spudding of 
Tapit South (1811/5-1) on the Tapir South 
prospect in April of this year. 
Continued portfolio development
The Company has spent a total of 
US$108 million to date progressing our 
highly prospective acreage. Throughout 
the period, the portfolio has continued 
to grow with total gross mean un-risked 
prospective resources now estimated 
at 20.0 billion barrels with 15 prospects 
and 16 leads, 11 of which were identified 
in the Central Blocks following the 
reprocessing and reinterpretation of 
previous data sets. This is a significant 
value enhancement of our portfolio 
that has been achieved through the 
ongoing disciplined and systematic 
efforts of our technical team. 
Through additional geological and 
seismic work, the Company has been 
able to increase its portfolio as well 
as de-risk certain prospects such as 
Tapir South, now poised to be spud 
in April 2012, and to develop other well 
targets. The continued development 
and better understanding of our 
portfolio as well as the subsequent 
de-risking of our prospects will only 
improve further, following the processing 
and interpretation of the extensive 
3,500km² of seismic data acquired 
over our Central Blocks in February. 
These results are due to be announced 
at the end of 2012.
The world class quality of our assets 
and prospects was endorsed during the 
period under review through a successful 
fundraising in April 2011 which resulted 
in net cash received of US$140 million. 
At the same time the Company 
completed farm-in partnerships with 
PGS and BP in August and furthermore 
secured the approval from the Ministry 
of Mines and Energy Namibia for the 
First Renewal Phase of the Central Blocks 
and Southern Block 2714A where Chariot 
was able to retain 100% of its acreage. 
In addition to this, the election of 
Petrobras to take up operatorship 
and their commitment to an exploration 
well later this year in Block 2714A 
demonstrates their confidence in 
our prospective resources.
Successful farm-out agreements
With the introduction of a second 
major and subsequent support from 
one of the world’s leading seismic 
companies, Chariot witnessed an 
increase in confidence and interest 
not only in the potential of its highly 
prospective acreage but also in firmly 
placing Namibia as a new frontier 
region for major oil exploration.
The Company now has two international 
oil majors farmed into Block 2714A (BP 
holds 45% of the block, Petrobras 30% 
and Chariot 25%), a significant affirmation 
of the potential within our acreage. 
All partners have agreed on the well 
location of the first exploration well, 
Kabeljou (2714/6-1), on the Nimrod 
prospect and Petrobras is currently 
tendering for a drilling rig. Nimrod is 
a very large structural prospect, some 
500km² in area, which is estimated 
to contain 4.9 billion barrels of gross 
un-risked mean prospective resources. 
PGS’ 10% farm-in into the Central Blocks 
has funded 50% of the 3,500km² 3D 
seismic campaign that commenced 
in December 2011 and completed in 
Highlights
k  Continued progress on prospect 
and lead inventory, further matured 
targets for drilling
k  3,500km² 3D seismic carried out on 
Central Blocks
k  Addition of two new international 
joint venture partners – endorsement 
of quality and potential of acreage
k  Fundraising during and post period 
end places Company in strong 
position to achieve its objectives
k  New additions to Board and 
Management further bolster 
technical and commercial team “ The Company is in a position of strength, 
with a strong balance sheet, high quality 
joint venture partnerships and a good 
understanding of the hydrocarbon 
potential offshore Namibia.”
Company Overview
05 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Business Review Corporate Governance Financial Statements Company Overview
Chariot Oil & Gas Limited Annual Report and Accounts 2011
February 2012. The survey was designed 
to cover as many of the recently identified 
high graded leads as possible, with 
the intention of further expanding the 
prospect and lead inventory, mitigating 
risk and maturing further targets for 
drilling. The data acquired is considered 
to be of excellent quality and is currently 
being processed. The Company looks 
forward to providing a resource update 
once interpretation is complete. This 
will then be followed up by a further 
Competent Person’s Report.
Whilst the addition of these farm-in 
partners is a significant endorsement 
of Chariot’s acreage, it also provides 
the Company with further funds to 
concentrate on developing its portfolio 
and to focus on its longer term 
drilling campaign.
Financial review 
The Group remains debt free and as at 
31 December 2011 it held cash balances 
of US$129.0 million (US$9.2 million as 
at 28 February 2011). The successful 
fundraising in April 2011, whereby 
US$140 million (net) was raised, places 
Chariot in a very strong position to 
achieve its current strategic objectives 
and the Company’s cash position 
was further strengthened with a 
placing announced post period end, 
in March 2012, for gross proceeds 
of approximately US$48.7 million. 
The BP farm-out on Block 2714A and 
the PGS farm-out on the Central Blocks 
have had a significantly positive impact 
on the Group’s cash resources. In terms 
of Block 2714A, BP has paid a significant 
majority of Chariot’s back costs in relation 
to the licence and will also meet Chariot’s 
obligations in relation to the drilling of 
the first well on the block.
The PGS farm-out has also resulted in 
significant cost savings for the Group 
in terms of the 3D seismic acquisition 
programme, with PGS funding 50% 
of the cost of the programme. 
During the ten month period to 
31 December 2011 the Company 
incurred losses of US$9.2 million 
(Year to 28 February 2011: US$7.3 million) 
with other administrative expenses 
accounting for US$5.6 million (Year to 
28 February 2011: US$5.0 million), of 
this loss. Excluding foreign exchange 
losses of US$2.1 million and share based 
payments of US$2.4 million, the loss 
for the period reduces to US$4.7 million 
(Year to 28 February 2011: US$4.9 million). 
The US$140 million funds raised in 
April 2011 were received in Sterling 
and the majority was converted into 
US Dollars at the time of the fundraising. 
However, the Group continues to hold 
Sterling balances to cover its foreseeable 
costs in that currency and, due to the 
strengthening of Sterling against the 
US Dollar during the period under review, 
the loss for the period includes the 
foreign exchange loss of US$2.1 million 
(Year to 28 February 2011: gain of 
US$15,000) discussed above.
Capitalised exploration costs for the ten 
month period ended 31 December 2011 
amounted to US$15.3 million (Year to 
28 February 2011: US$4.1 million), a large 
portion of which related to the 3,500km² 
3D seismic acquisition programme with 
PGS which was carried out on the Central 
Blocks and which was completed in 
February 2012. The balance of the 
material exploration expenditure incurred 
in the period relates to the preparation 
and planning for the Company’s 
upcoming drilling campaign.
The Group changed its accounting 
reference date from 28 February to 
31 December to ensure that its reporting 
date is more aligned with its industry 
peer group. 
Board of Directors and 
management changes
We were pleased to welcome 
Larry Bottomley to the Board as a 
Non-Executive Director in September. 
Larry has been working in the oil 
and gas industry for over 30 years 
and has a wealth of experience in 
frontier exploration and a significant 
understanding of the hydrocarbon 
potential of Namibia. 
I would also like to take this opportunity 
to welcome Robert Mwanachilenga, 
who joined us post period end in our 
Namibian office as Country Manager. 
Robert is a Petroleum Engineer with 
20 years of international experience in 
the oil and gas industry. Prior to joining 
Chariot he worked for the National 
Petroleum Corporation of Namibia 
(NAMCOR), as Acting Managing 
Director, having also held positions in 
the Company as Engineering Manager 
and Development Engineer. We very 
much look forward to working with 
Robert, whose in-depth knowledge 
of Namibia and industry experience 
will be instrumental as we continue 
to develop our Namibian assets.
Conclusion 
The period under review has seen the 
Company prepare itself for an extensive 
drilling campaign offshore Namibia. 
The Company is in a position of 
strength, with a strong balance sheet, 
high quality Joint Venture partnerships 
and a good understanding of the 
technical merits of the hydrocarbon 
potential of the country. I would like to 
thank all staff and contractors for their 
efforts in achieving this and thank the 
Ministry of Mines and Energy Namibia 
and the Government of Namibia for 
their continued support throughout. 
Should the results of our exploration 
wells be positive, Chariot looks forward 
to becoming an integral part of the 
economic growth of Namibia that will 
inevitably follow.
Adonis Pouroulis
Chairman 
20 March 2012 06 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Chief Executive’s review
Chariot stands at a pivotal stage of its 
development as we move into the drilling 
phase of our exploration programme, 
the results of which have the potential 
to be transformational for the Company 
and for Namibia. The team has continued 
to explore and maximise the prospectivity 
of our assets in preparation for the 
operational year ahead in which we 
will continue to develop our portfolio 
and balance risk through further 
farm-out agreements and new business 
opportunities whilst concurrently 
commencing our Namibian four to 
five exploration well programme 
through to the end of 2013.
Exploration progress –  
an operational year ahead
The period under review saw significant 
improvement in our exploration progress, 
working towards mitigating risk and 
funding further projects to develop our 
assets, culminating in the successful 
procurement of a drilling rig contract 
with A. P. Moller Maersk A/S (“Maersk”) 
for a one well drilling slot on the Tapir 
South prospect commencing next 
month using the Maersk Deliverer 
drilling rig, with Chariot as operator. 
The Maersk Deliverer is an ultra 
deepwater semi-submersible drilling 
rig, ideal for the planned total vertical 
depth subsea level (5,100m) of Tapir 
South. It is anticipated that the rig 
will arrive on location, 80km offshore 
Namibia, at the end of March 2012 
and that the drilling of the Tapir South 
prospect will commence shortly 
thereafter. This is only the second 
well to be drilled in the Namibe Basin 
and its results could see Namibia 
become a significant oil province.
Following the drilling of Tapir South, 
a second well, Kabeljou (2714/6-1), 
is anticipated to be spud in H2 2012. 
This will be operated by Petrobras and 
the Chariot cost of the well carried by 
BP. With the well location agreed by all 
partners, Petrobras is currently ordering 
long lead items and setting up a support 
base in Luderitz Bay whilst concurrently 
tendering for a suitable drilling rig. 
Kabeljou (2714/6-1) is located on the 
Nimrod prospect in a water depth of 
350m with an anticipated total depth 
of 3,100m. The prospect has a 24% 
chance of success and gross un-risked 
mean prospective resources of 4.9 billion 
barrels, making the potential outcome 
of this well extremely exciting.
Following the results of Tapir South 
(1811/5-1), Kabeljou (2714/6-1) and the 
evaluation of the 3,500km² of 3D seismic 
data recently acquired in the Central 
Blocks, the Company will look to drill 
a third well. This will be a crucial time 
for the Company as we stand on the 
verge of seeing the high potential 
of our assets realised. 
Farm-out development
In August the Company signed two 
farm-in contracts, one with BP (50% of 
Chariot’s equity in 2714A, one well carry 
and back costs) and the other with PGS 
(10% Central Blocks, 50% of costs of 
3,500km² 3D seismic acquisition). 
Throughout the year Chariot has 
continued to meet with high calibre 
companies who have shown significant 
interest in our data across all of our 
licence areas and negotiations remain 
ongoing. Since opening the data room, 
further West African oil discoveries have 
been made near to our acreage, such 
Highlights
k   Well prepared for an operational 
year ahead
k   Two wells to be spud this year:
 k   Tapir South (1811/5-1): April 2012
 k   Kabeljou (2714/6-1): Q3 2012
k   Petrobras elected for operatorship 
of Kabeljou (2714/6-1), currently 
tendering a rig
k   Farm-out discussions continue
k   Evaluation of other African 
opportunities progresses
Paul Welch
Chief Executive Officer “ The last ten months have seen the Company 
work hard to make ready for the drilling phase 
of our exploration programme, the results of 
which have the potential to be transformational 
for the Company and for Namibia.”
Company Overview
07 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements Company Overview Business Review
as that of Cobalt International Energy’s 
Cameia-1 well in Southern Angola, 
which is on trend with our Northern 
Licence Blocks and appears to share 
analogous features with our prospects. 
This has sparked further interest in 
our Northern prospects and we thus 
continue in our negotiations and will 
update the market with any material 
developments when they occur. The 
funds raised in the placing announced 
post period end ensure that we are in 
a very strong position when negotiating 
farm-out terms.
Opportunities evaluation
Throughout the period, the technical 
team has continued to evaluate and 
analyse numerous new business 
opportunities with the intention of 
finding an African asset of suitable fit 
within the Chariot portfolio. In doing 
so, we aim to balance the Company’s 
risk at the same time as developing 
Chariot’s broader involvement in Africa. 
We are currently in discussions regarding 
a number of carefully considered assets 
and we look forward to reporting our 
progress in due course.
Operating in Namibia
It is a pleasure working alongside the 
Namibian Government and Ministry 
of Mines and Energy Namibia who 
have supported the Company into its 
First Renewal Phase. We would like to 
thank both bodies for their continued 
support and their co-operation in 
the development of our operational 
bases in Walvis and Luderitz Bay as the 
Company moves into the drilling phase. 
Chariot has continued to monitor its 
effect on the environment, carrying 
out appropriate Environmental Impact 
Assessments as well as devising an 
Environmental Management Plan in 
preparation for drilling. Chariot also 
looks to ensure that local Namibian 
companies are employed in a variety 
of ways, from technical services and 
logistics to catering. As we move 
deeper into 2012 the number of local 
partnerships will continue to increase 
and, should we encounter success, we 
will be able offer further job opportunities, 
providing educational and economic 
support to the country. 
Looking forward
I would like to thank our staff and all 
those that have been associated with 
the Company’s progress over the last 
ten months for their consistent hard 
work and our shareholders for their 
continued support. This is a very 
exciting time for the Company at the 
commencement of our four to five well 
drilling programme, the outcome of 
which could see Namibia become an 
important hydrocarbon province, and 
Chariot a significant independent 
African oil explorer and producer.
Paul Welch
Chief Executive Officer 
20 March 2012
Subsequent events
On 5 April 2012 the Company 
announced that the Tapir South 
(1811/5-1) well had spud. The 
position and total depth of the well 
remains unchanged: it is located 
80km offshore Namibia in the 
Company’s Northern Block 1811A, 
in which Chariot has a 100% equity 
interest. The well is being drilled to 
an estimated total depth of 5,100m 
TVDss and, as announced following 
the placing of 20 March 2012, this 
will now include extended drilling 
time to ensure that one of the deeper 
identified targets is drilled through 
to its base. The drilling and logging 
operations are expected to take 
approximately 70 days and the results 
received will provide invaluable 
information for furthering our 
knowledge in the area. This will also 
have the potential to significantly 
de-risk other prospects in near 
proximity, as well as to make Namibia 
a recognised oil province.
Also on 5 April 2012 Chariot reported 
that, having received an update from 
the operator, the Kabeljou (2714/6-1) 
well would now be likely to spud 
earlier due to the likelihood of a drilling 
unit being secured in Q3 2012.  08 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Review of operations
Highly prospective acreage
The Chariot acreage position comprises 
eight large blocks held within four 
licences that encompass an area of 
30,504km² offshore Namibia – the third 
largest holder in country, and eleventh 
largest in the whole of offshore West 
Africa. The blocks are grouped in three 
sets, each located in a separate basin 
with distinctive geological characteristics. 
Each basin is recognised to have huge 
hydrocarbon potential and the Company 
is on the brink of determining that 
potential with the onset of its drilling 
campaign. Success in either of the first 
wells will mark the transition of Namibia 
from a frontier region to a lucrative 
oil province.
West Africa – still Africa’s main 
under-explored oil play
The South Atlantic margin of Africa has 
many common elements of geology 
through the various basins along it, 
as well as many shared characteristics 
with the South American Atlantic margin 
from which it separated in early 
Cretaceous times. Exploration has 
focused traditionally on the prolific salt 
basins and the Niger Delta with limited 
success outside of these areas until 
recent exploration, driven by 3D seismic 
and new play thinking, demonstrated 
large potential along the Transform 
Margin (Ghana to Sierra Leone) and 
similarly on the South American 
equivalent margin. This successful 
exploration effort, going north of the 
salt basins, has not yet been matched 
by an equivalent effort going south 
of the salt basins where Namibia 
lies over the largest segment of highly 
under-explored Atlantic margin. Chariot’s 
two pending wells will be only the second 
and third exploration wells ever drilled 
in Namibia with the key benefit of 3D 
seismic control. 
Amongst the key shared characteristics 
of the Atlantic margin basins are source 
rocks; the Cenomanian-Turonian 
interval charges many of the largest 
discoveries along the margin and is 
developed in excellent, oil prone facies 
over the area of the 1811 Blocks. Similarly, 
Lower Cretaceous synrift and basal “drift” 
sequence source rocks are responsible 
for major oil accumulations along the 
margin and are indicated or proven 
to exist in the Namibian basins. A key 
contributing factor to the large size and 
prolific capability of many African oil 
fields is the good quality of the sandstone 
reservoirs. The extensive, cratonic 
Northern Block 1811A  
Tapir South (1811/5-1) well
Chariot’s first exploration well, T apir South, 
is only the second to be drilled in the 
Namibe Basin – the results of which 
will be invaluable to furthering our 
knowledge and development. 
Initiating the drilling campaign:
k  Operator: Chariot
k Ownership: Chariot 100%
k Drill rig: Contract signed with 
Maersk for the Maersk Deliverer 
semi-submersible
k Spud date: 5 April 2012
k 25% Chance of Success
k Mean un-risked prospective 
resources of 604 million  
barrels of oil
k Location: 80km offshore
k Water depth: 2,108m
k Estimated total depth 5,100m TVDss
k Multiple reservoir targets
k Expected phase: light oil
Well path of Tapir South (1811/5-1) 
on 3D seismic
Tapir trend of Block 1811A interpreted on 3D seismic Company Overview
09 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements Company Overview Business Review
hinterland of Africa is a good provenance 
for clean sands and wells offshore 
Namibia have encountered good 
thick sands in a range of depositional 
environments, from Aeolian to deltaic 
sand sheets to deep marine turbidite 
fans and channels. Seals are typically 
marine shales. Older sandstone 
reservoirs can be degraded by clays but 
despite their age, deeply buried reservoirs 
such as the Kudu Field can be highly 
permeable even at a depth of over 4km. 
Chariot leading the way
Chariot, through its wholly owned 
subsidiary Enigma Oil & Gas Exploration 
(Pty) Limited, entered Namibia in 2007 
and since then has conducted the 
largest seismic survey in country to 
date, comprising 8,000km² of 3D 
seismic in addition to previous 2D 
seismic surveys. The use of 3D seismic 
evaluation is a primary tool for the 
effective de-risking of prospects prior 
to drilling but, to date, has only been 
used to guide one exploration well 
drilled in Namibia. With the benefit of 
its seismic dataset Chariot has been 
able to identify robust structural and 
stratigraphic traps building a portfolio 
of 15 prospects and 16 leads with total 
estimated mean un-risked resource 
potential of over 20.0 billion barrels of 
oil. With some 15 targets ready to drill 
we look forward to the spud this year 
of our first two wells on the Tapir 
South (Northern Blocks) and Nimrod 
(Southern Blocks) prospects. 
Anticipated outcome
In our prospect areas the mapped 
source rock kitchens are all in the 
oil window and at, or near to, their 
maximum maturity present day. 
This means that we expect to find a 
liquid charge to our traps with oil being 
the expected phase in the event of 
a discovery. It is important to note that, 
whilst the Kudu Field discovery was 
one of dry gas, it is located within the 
Orange Delta where the rift source 
rock has been buried to a depth of 
more than 5km, resulting in it being 
highly overcooked and gas generating. 
Chariot’s acreage, however, lies north 
of this area and contains a much 
shallower charge kitchen which 
sits in the oil window.
All of our prospects, if successful, are 
expected to be commercial and likely 
to be developed rapidly, bringing both 
Namibia and Chariot into the realm 
of significant oil producers. 
Southern Block 2714A  
Kabeljou (2714/6-1) well
The Kabeljou well is situated on the 
500km² Nimrod prospect, one of  
the largest prospects to be drilled 
worldwide this year. 
k  Operator: Petrobras
k  Ownership: BP 45%, Petrobras 30%, 
Chariot 25%
k  Currently tendering for a drilling 
rig contract
k  Spud date: Q3 2012
k  24% Chance of Success
k  Gross mean un-risked prospective 
resources of 4.9 billion barrels of oil 
k  Well location agreed
k  Water depth: 350m
k Estimated total depth 3,100m TVDss
k  Seismic anomalies identified 
in structural closure
k  Oil generating kitchen
Well path of Kabeljou (2714/6-1) 
on 3D seismic
Nimrod structure 
and attribute maps 
interpreted from 
3D seismic 10 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Review of operations continued
The Northern Blocks 1811A&B (100% Chariot) cover an area 
of 5,481km² and are located to the north of the Walvis Ridge 
in the Namibe Basin, which is conjugate to the oil producing 
Santos basin in Brazil. Chariot has identified four prospects 
and two leads within the blocks and estimates these to 
contain a potential mean un-risked prospective resource 
volume of 2.8 billion barrels of oil.
Within the 1,500km² 3D seismic survey that Chariot completed 
in 2010, the Company has identified a large ridge called the 
Tapir “trend” with three culminations forming three prospects, 
each commercial in its own right. The ridge is formed by a 
rotated fault block over which are draped deep marine sediments 
containing mid-Cretaceous source rocks at the base passing 
up into multiple turbidite sandstone reservoirs at several mapped 
levels interbedded with deep marine shale reservoirs. On the 
rotated fault block itself, Apto-Albian carbonates form an 
additional target. These underlie a horizon that appears 
to correspond to a level where mobile salt was present. 
Chariot is currently drilling the Tapir South prospect (well 
1811/5-1) which has a 25% Chance of Success and a mean 
un-risked prospective resource potential of 604 million 
barrels of oil. On this prospect, multiple four way dip 
closures that contain deep marine channel sandstone 
geometries which are adjacent to a well defined oil charge 
kitchen have been identified. The well trajectory is planned 
for a TVDss of 5,100m with multiple reservoir targets. It is 
expected that minor overpressure will be present, based 
on offset wells, and that the oil, if discovered, will be at 
the “light” phase. In the event of success, the results of 
this well will significantly increase the Chance of Success 
on the other prospects in the area as well as additional leads.
The Central Blocks 2312A&B and the Northern halves of 
2412A&B (90% Chariot, 10% PGS) are located within the 
Luderitz and Walvis Basins and cover an area of 16,801km². 
They lie adjacent to a shelf area with proven thick deltaic 
sands and current seismic mapping indicates that they have 
been reworked via canyon systems into the Central Blocks 
themselves. At this point the sands seem to be deposited as 
large submarine fan and channel complexes in the Upper 
Cretaceous section, likely to be interbedded with deep 
marine shales that form a good seal.
At present the Company has identified 14 leads and gross 
mean un-risked prospective resource volumes of 8.3 billion 
barrels of oil in this licence area. These blocks are the least 
mature in terms of exploration in the Company’s profile, with 
current estimates derived from 2D seismic data. This will be 
reassessed following the processing and interpretation of 
a 3,500km² 3D survey that was carried out at the end of 
2011/beginning of 2012 and is likely to provide increased 
prospective resource volumes and additional drilling targets.
This 3D seismic acquisition was carried out in conjunction 
with PGS using 3D Geostreamer technology. It covered the 
north eastern areas of the blocks following the reinterpretation 
and reprocessing of 3,000km of 2D seismic data which 
identified 11 new leads within this area that occur in several 
different target intervals within both structural and stratigraphic 
traps. These include analogues to the Nimrod feature identified 
in the Southern Blocks as well as an indication that two source 
rock levels are mature for oil generation. In directing the 3D 
survey over this area the Company anticipates having the 
best chance of delivering multiple drillable prospects. With 
no salt layer in this region the 3D data quality is considered 
to be excellent, with high clarity capable of indicating the 
type of fluids contained within the objective horizons. 
Chariot’s Southern Blocks 2714A&B cover 8,222km² and are 
situated in the Orange Basin. Chariot holds 25% of Block 2714A 
with Petrobras (30% and operator) and BP (45%) as partners 
and 100% of Block 2714B. The Company has identified gross 
mean un-risked prospective resources of 9.0 billion barrels 
of oil within the combined blocks, with 11 prospects positioned 
over three objective horizons.
A “mega-structure” prospect, Nimrod, which is estimated to 
contain 4.9 billion barrels of oil, is of particular interest in this 
licence area and is the location for the Southern Blocks’ first 
exploration well, Kabeljou (2714/6-1) – expected to be drilled 
in Q3 2012. Due to a presence of a Direct Hydrocarbon Indicator 
(“DHI”) over the large closure area which supports the presence 
of both charge and trap, the prospect has a Chance of Success 
of 24%. The main target of Kabeljou (2714/6-1) is Albian deltaic 
sandstones that are identified by a correlation to the nearest 
well in which excellent quality reservoir is present. Two separate 
sands appear to be present, both with a DHI in the Albian 
level and additionally there is a deeper Barremian sandstone 
target in a structural trap which will also be penetrated with 
Kabeljou (2714/6-1).
Further mapped prospects have been identified at the Albian 
target level and at a deeper horizon level, believed to be 
Barremian in age. The age and stratigraphic trap geometry 
of these prospects at this deeper level are similar to the 
Kudu Field which demonstrates the validity of the play. 
Importantly the kitchen for these prospects in Block 2714A 
is much shallower than for the Kudu field and oil is the 
expected charge rather than gas. These prospects look 
to be attractive follow-on targets in the event of success 
with the Kabeljou (2714/6-1) well. 
Matthew Taylor
Director of Exploration
Northern Blocks
Central Blocks
Southern Blocks Company Overview
11 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements Company Overview Business Review
2012 target
Having drilled Tapir South (1811/5-1) Q2, analyse results and commence potential 
appraisal work in 2013.
2012 target
Process and interpret 3,500km² of 3D seismic data H2 2012, provide interim resource 
update Q4 2012 followed by detailed interpretation and CPR early 2013.
2012 target
Drill Kabeljou (2714/6-1) exploration well on Nimrod prospect Q3 2012, analyse 
results and commence potential appraisal work in 2013. 12 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Social Responsibility
Chariot supports the growing awareness of 
social, environmental and ethical matters when 
considering business practices. This statement 
provides an outline of the policies in place that 
guide the Company and its employees when 
dealing with social, environmental and ethical 
matters in the workplace.
Code of conduct
Chariot maintains and requires the 
highest ethical standards in carrying 
out its business activities in regard 
to dealing with gifts, hospitality, 
corruption, fraud, the use of inside 
information and whistle-blowing. 
Chariot has a zero tolerance policy 
towards bribery. 
Equal opportunity and diversity
Chariot promotes and supports the 
rights and opportunities of all people 
to seek, obtain and hold employment 
without discrimination. It is our policy 
to make every effort to provide a 
working environment free from 
bullying, harassment, intimidation 
and discrimination on the basis of 
disability, nationality, race, sex, 
sexual orientation, religion or belief.
Employee welfare
Chariot aims to assist employees at 
all levels to improve their professional 
abilities and to develop their skills.
The Company will practice manpower 
and succession planning in regard to the 
number and type of personnel resources 
that will be required in the future. 
Individual career progression activities 
are developed with this in mind.
Joint venture partners, 
contractors and suppliers
Chariot is committed to being honest 
and fair in all its dealings with partners, 
contractors and suppliers. The Company 
has a policy to provide clarity and 
protection, within its terms of business, 
to ensure the delivery and receipt 
of products and services at agreed 
standards. Procedures are in place 
to ensure that any form of bribery or 
improper behaviour is prevented from 
being conducted on Chariot’s behalf 
by Joint Venture Partners, Contractors 
and Suppliers. Chariot also closely 
guards information entrusted to it by 
joint venture partners, contractors and 
suppliers, and seeks to ensure that it is 
never used improperly. 
Operating responsibly 
and continuous improvement
Chariot is committed to a proactive 
quality policy to ensure that stakeholders 
are satisfied with its results and the way 
in which the business operates and to 
promote continuous improvement in 
the overall operation of the Company. 
In pursuit of these objectives, Chariot 
will use recognised standards and 
models as benchmarks for its 
management system.
Environmental and 
socioeconomic policy
Chariot adopts an environmental policy 
which sets standards that meet or exceed 
industry guidelines and host government 
regulations. This is reviewed on a regular 
basis. Wherever we operate we will 
develop, implement and maintain 
management systems for sustainable 
development that will strive for 
continual improvement.
Prior to any seismic acquisition 
programmes and in preparation for 
the drilling of an exploratory well, 
Chariot employs environmental 
consultants to carry out area specific 
Environmental Impact Assessments 
(“EIAs”) which are subsequently put 
forward for approval to the Namibian 
Ministry of Mines and Energy in 
accordance with other relevant 
Ministries, for example, the Ministry 
of Fisheries and Marine Resources 
and the Ministry of Environment and 
Tourism. Chariot intends to carry out 
all necessary requirements to ensure 
that the environment in and around 
its areas of interest are maintained 
to the highest standards. 
As part of the environmental 
assessment, during the time of seismic 
acquisition, Chariot employed marine 
mammal observers to travel on board 
the seismic vessels. These observers 
were able to compile marine mammal 
and bird count statistics which will 
assist in the preparation of future EIAs.
With regards to preparation for the 
drilling of an exploratory well, an 
Environmental Management Plan has 
been devised and will be implemented 
from preparatory stage to well 
completion. Whilst drilling is underway, 
an Oil Spill Response and Emergency 
Response plan will be put in place. 
Going forward, an Environmental 
Management System will be developed to 
co-ordinate and monitor environmental 
activities and report the performance 
over the lifetime of the field from 
discovery to development, through 
to abandonment.
Social impacts will also form part of these 
assessments and preliminary work in this 
area will consider the local communities 
and the local economic effects on a 
progressive and permanent level in 
the event that Namibia becomes a 
petroleum province. It is Chariot’s 
aim to ensure that all the likely 
environmental and socioeconomic 
impacts will be managed with skill, 
care and diligence in accordance 
with professional standards.
Chariot is committed to maintaining 
and regularly reviewing its Health 
and Safety and Environmental 
(“HSE”) policies. Company Overview
13 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements Company Overview Business Review
Our goals
With the movement of the 
Company into the next phase, 
Chariot has striven to adhere to 
the strictest guidelines, aiming 
to operate responsibly and carry 
out its tasks with skill, care and 
diligence in accordance with 
professional standards. This, 
we hope, will ensure that the 
Company effectively reduces 
any negative impact and is 
effective in its positive impact 
to the local area and Namibia 
in both the short and long term.
k  High ethical standards
k  Honest and fair in all manners of business
k  Implement and maintain management 
systems for sustainable environmental 
and socioeconomic development 14 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Board of Directors
Adonis Pouroulis Non-Executive Chairman
Adonis, one of the founders of Chariot and Enigma, is a 
mining entrepreneur whose expertise lies in the discovery 
and exploration of natural resources. Adonis is also Chairman 
of Petra Diamonds Ltd., a pan-African diamond mining 
company which he founded and listed on London’s AIM 
market in 1997, and moved to the main market in 2011. Petra 
is now South Africa’s second largest diamond producer, with 
a balanced portfolio combining major producing mines and 
world-class exploration. He has been influential in the listing 
of a number of other companies onto AIM and has been 
instrumental in structuring and raising funds to help finance 
a number of early stage exploration and mining projects 
across Africa.
Robert Sinclair Non-Executive Director
Robert is managing director of the Guernsey based, 
Artemis Trustees Limited and a director of a number of 
investment fund management companies and investment 
funds associated with Artemis Trustees Limited. Robert is 
chairman of Schroder Oriental Income Fund Limited and 
a director of ING UK Real Estate Income Trust Limited. 
He is a Fellow of the Institute of Chartered Accountants 
in England and Wales and is resident in Guernsey. Robert 
represents the interests of Westward Investments Limited, 
a major shareholder of Chariot.
Paul Welch Chief Executive Officer
Paul has extensive oil and gas industry experience, having 
worked for Shell International for twelve years, followed 
by a further nine years with independent companies, most 
recently with Hunt Oil and Pioneer Natural Resources. 
He held a wide variety of engineering, management and 
business development positions throughout Shell’s global 
operations across all of its core regions of exploration, 
development and production. At Hunt Oil, Paul evaluated 
exploration and production opportunities across its 
international asset portfolio and more recently he worked 
in Northern Africa with Pioneer, responsible for producing 
assets in Tunisia. Paul was instrumental in significantly 
increasing Pioneer’s Tunisian production profile and 
overseeing new business development in Algeria, Libya, 
Morocco, Egypt and Iraq.
George Canjar Non-Executive Director
George has 30 years of experience in the oil and gas industry 
and began his career at Shell having graduated with a BS in 
Geologic Engineering from the Colorado School of Mines. 
He subsequently worked with Carrizo Oil and Gas as Vice 
President of Exploration and Development and more recently 
he was Executive Vice President and Chief Operating Officer 
for Davis Petroleum Corporation. His career has spanned a 
broad spectrum of the E & P sector involving all petroleum 
engineering and exploration disciplines as well as a variety 
of corporate activity. His expertise lies in deal structuring, 
portfolio development, risk analysis and strategic modelling, 
in addition to being the operational catalyst for bringing 
successful projects to first production.  Company Overview
15 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Financial Statements Company Overview Business Review Corporate Governance
James Burgess Commercial Director
James set up Everett Financial Management Limited in 
1992 and sold it in 2003. Since then, he has been involved 
in numerous fundraisings and the admission to trading on 
AIM of a number of companies in the energy and resource 
sectors operating largely in the African continent. Prior to 
Everett Financial Management Limited, James worked with 
Hoare Govett. He is a non-executive director of a number 
of resource companies.
Philip Loader Non-Executive Director
Philip has over 27 years of experience in the upstream oil 
and gas industry and his core strengths lie in international 
exploration and business development. He is currently 
Senior Vice President of Exploration for Mubadala Oil 
and Gas, accountable for their exploration inventory 
across the Eastern Hemisphere. Philip began his career 
as a geophysicist in 1983 and throughout his career has 
evaluated numerous opportunities across the globe. 
He has a wealth of experience in Africa, having made 
discoveries in Tunisia, Algeria and Equatorial Guinea. 
Prior to Mubadala, Philip worked for Anadarko Petroleum 
Corporation for over ten years, latterly as Vice President 
of international exploration where he oversaw exploration 
related activities in a variety of international provinces. 
Philip holds a B.Sc in Geology from the University 
of Manchester, an M.Sc DIC in Petroleum Geology 
(Geophysics) from Imperial College, University of London 
and an MBA from Henley Management College.
Heindrich Ndume Country Director Namibia
Heindrich is a Namibian national with mining exploration 
experience throughout sub-Saharan Africa. Heindrich has 
played a unique role within the development of Namibia’s 
mining and energy strategies, including acting as National 
Energy Council Secretary and World Energy Council 
Representative for the Ministry of Mines and Energy Namibia. 
Heindrich was one of the founding shareholders of Enigma, 
which is a 100% subsidiary of Chariot.
Larry Bottomley Non-Executive Director
Larry has worked in the oil and gas industry for over 30 years 
and has a significant track record of building exploration and 
production businesses on the international stage, delivering 
transformational growth and shareholder value. Larry has 
held senior management roles with Perenco SA, Hunt Oil, 
Triton Energy and BP, working across a broad spectrum 
of exploratory and business development roles worldwide. 
He has a strong background in integrated geosciences, team 
management and relationship building and a key aspect of 
his work has been in the creation, development and delivery 
of significant drilling programmes that have led to the 
discovery and development of giant oil fields.  16 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Senior Management Team
Martin Richards Development Engineering Manager
Martin has worked in the oil and gas industry for over 30 years 
and has in-depth experience of all aspects of subsurface 
management, reservoir engineering and petroleum economics. 
He has worked as both a Chief and Senior Reservoir Engineer 
for a variety of companies, including Petro-Canada, Suez Oil 
Company, Deminex and Mobil. He has particular expertise 
in operational and functional reservoir management, leading 
multi-disciplinary reservoir studies, asset management and 
reserves reporting. Martin has had numerous exploration 
and drilling successes to date.
Julia Kemper Principal Geophysicist
Julia has more than 25 years of experience in the oil and gas 
industry having worked as a geophysicist for both BP and 
Shell and more recently as senior geophysicist with Hunt Oil 
and MND Exploration and Production. She 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. Julia specialises in the development, interpretation 
and evaluation of 2D and 3D seismic programmes as well as 
the assessment of new opportunities. She has a long track 
record of working in Namibia and her knowledge of the 
country contributed to securing the offshore acreage for 
Hunt Oil in 2005.
Matthew Taylor Director of Exploration
Matthew is a petroleum geologist who has worked in 
the industry for nearly 30 years. He began his career 
with BP Exploration in 1980 and subsequently held senior 
geologist posts with BHP Petroleum and Triton Energy. 
Further to this Matthew consulted and advised for 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. Subsequent to this, working 
for Hunt Oil, he played a major role in the acquisition 
of exploration acreage in Namibia, Oman, Senegal, 
Togo and Western Europe.
Alex Green Commercial Manager
Alex has over 20 years of experience in business development, 
commercial and financial functions in the upstream oil and 
gas industry. Alex began his career as a Petroleum Economist 
for Clyde Petroleum where he was responsible for developing 
the company’s corporate business model and evaluating 
acquisition opportunities. He subsequently worked as a 
Risk Analyst for BG Plc and moved to Commercial Manager 
and then Group Economics Manager for Paladin Resources. 
At Paladin, Alex led successful joint venture negotiations and 
ran the financial and commercial analysis within the company’s 
business development team. He also played a key role in 
developing internal and external financial models. Company Overview
17 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Financial Statements Company Overview Business Review Corporate Governance
Anthony Jervis Senior Geoscientist
Anthony has been a geoscientist for over ten years and has 
worked across a variety of disciplines including petrophysics 
and wellsite operations, seismic interpretation, play fairway 
analysis, prospect generation and evaluation. Anthony has 
experience working in Australasia, Africa, Europe and the 
Middle East and began his career working in the development, 
exploration and operations teams for Santos Ltd, moving 
onto Gaffney, Cline and Associates where he led detailed 
field reviews, CPRs and reserve audits for independents, 
majors and NOCs. In 2009 he joined AWE Ltd as Senior 
Geoscientist where he assessed New Venture projects 
including exploration, pre-developments and corporate 
acquisitions, led a successful Licence Round and was 
a member of their Peer Review team.
Ian Thomas Senior Staff Geophysicist
Ian has a strong technical and commercial background 
with over 30 years of global experience as a geophysicist. 
His geological and geophysical skills have been applied 
across a diverse range of assets and he has identified, 
evaluated and successfully promoted business opportunities 
in Venezuela, Colombia, North Africa, Kazakhstan and the 
UK. He started his career with Cities Service, subsequently 
working for RTZ, Elf and Ultramar, with key roles in the 
formation of successful farm-in groups, bidding rounds, 
focused interpretations and new venture analysis. In 1992 
he moved to Nimir where he built up their worldwide 
exploration and production portfolio and from there 
joined Silverstone Energy (now Bridge Energy) which 
made three commercial discoveries during his tenure.
Robert Mwanachilenga Country Manager
Robert has been in the oil and gas industry for 20 years, with 
experience in a variety of international roles. Prior to joining 
Chariot, Robert worked for the National Petroleum Corporation 
of Namibia (“NAMCOR”) as Acting Managing Director, having 
also held roles within the Company as Engineering Manager 
and Development Engineer. Robert is a member of the 
Society of Petroleum Engineers, the Association for the 
Advancement of Cost Engineers International and the 
Engineering Council of Namibia. 18 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Remuneration Committee
The Group’s Remuneration Committee comprises Adonis Pouroulis (Chairman), Robert Sinclair, George Canjar 
and Philip Loader.
The purpose of the Remuneration Committee is to:
k  make recommendations to the Board on an overall remuneration policy for Executive Directors and other Senior 
Executives in order to retain, attract and motivate high quality executives capable of achieving the Group’s objectives; and
k  demonstrate to shareholders that the remuneration of the Executive Directors of the Group is set by a committee whose 
members have no personal interest in the outcome of their decision and who will have due regard to the interests of 
the shareholders.
Procedures for developing policy and fixing remuneration
The Board fixes executive remuneration and ensures that no Director is involved in deciding his or her own remuneration. 
The Committee is authorised to obtain outside professional advice and expertise.
The Remuneration Committee is authorised by the Board to investigate any matter within its terms of reference and 
it is authorised to seek any information that it requires from any employee.
Details of the remuneration policy
The basic fees to be paid to the Directors are recommended by the Remuneration Committee and are subject to approval 
by the full Board.
Directors’ service agreements
All service agreements for Directors are terminable by either party on six months’ notice. 
Directors’ remuneration
The following remuneration comprises Directors’ fees and benefits in kind that were payable to Directors during the period:
 
Fees/basic
salary
US$’000 
Performance
cash bonus
US$’000 
Benefits in
kind
(1) 
US$’000 
Pension
contribution
(2)
US$’000
December 
2011
Total 
US$’000 
February
2011
Total
US$’000
P Welch 439 341 11 — 791 808
J Burgess 202 — 1 10 213 363
A Pouroulis 77 — — — 77 69
P Kidney
(3)
 — — — — — 103
R Sinclair 61 — — — 61 52
H Ndume 125 — 5 — 130 234
G Canjar 67 — — — 67 63
P Loader 61 — — — 61 38
L Bottomley 26 — — — 26 —
Total 1,058 341 17 10 1,426 1,730
(1) Benefits typically comprise private health care arrangements and permanent health insurance. 
(2) Pension costs for the period ended 31 December 2011 in relation to Directors were US$10,000 (February 2011: US$12,000).
(3) Directors who resigned during the year ended 28 February 2011.
Directors’ remuneration report Overview Financial Statements Company Overview Business Review Corporate Governance
19 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Directors’ interests in shares
The Directors who held office at the end of the period had the following interests in the issued share capital of the Group:
31 December 
2011
28 February 
2011
P Welch 250,000 250,000
J Burgess 2,250,000 2,250,000
A Pouroulis
(1)
21,565,971 22,015,971 
R Sinclair 200,000 —
H Ndume
(2)
20,107,426 21,376,171
P Loader — —
G Canjar — —
L Bottomley — —
Total 44,373,397 45,892,142
(1) Shares are held by Westward Investments Limited a Company which is owned by a discretionary trust of which Adonis Pouroulis is one of a number of beneficiaries.
(2) Shares are held by Protech Namibia (Pty) Limited of which Heindrich Ndume is the sole registered shareholder.
Share options
The Group operates a share option scheme pursuant to which Directors and senior executives may be granted options 
to acquire ordinary shares in the Company at a fixed option exercise price. 
During the period, options were granted over a total of 250,000 ordinary shares. Peter Kidney, a former Director, exercised 
500,000 options in the Company. No current Director options were exercised during the period. The interests of the 
Directors to subscribe for ordinary shares have not changed since the year end.
Further details of the above share option scheme and long-term incentive plan can be found in note 21.
Directors’ share options
The Directors who held office at the reporting date had the following interests in the share option scheme:
Options held 
at 1 March 
2011
Options granted 
in the period
Options held 
at 31 December 
2011
Exercise 
price 
(p)
Exercisable 
from
Expiry 
date
P Welch 3,000,000 — 3,000,000 26.00 13/11/2011 13/11/2019
J Burgess 200,000 — 200,000 130.00 13/05/2010 13/05/2018
A Pouroulis 100,000 — 100,000 130.00 13/05/2010 13/05/2018
R Sinclair 100,000 — 100,000 130.00 13/05/2010 13/05/2018
H Ndume 250,000 — 250,000 130.00 13/05/2010 13/05/2018
G Canjar 250,000 — 250,000 115.00 01/06/2012 01/06/2020
P Loader 250,000 — 250,000 119.00 18/08/2012 18/08/2020
L Bottomley — 250,000 250,000 125.00 01/09/2013 01/09/2021
Total 4,150,000 250,000 4,400,000 
By order of the Board
Adonis Pouroulis
Chairman of the Remuneration Committee 20 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate governance statement
The UK Corporate Governance Code
Chariot Oil & Gas Limited’s shares are traded on AIM and as such, Chariot is not subject to the requirements of the UK Corporate 
Governance Code on corporate governance, nor is it required to disclose its specific policies in relation to corporate governance. 
The Directors, however, support high standards of corporate governance and will progressively adopt best practices in line 
with the UK Corporate Governance Code so far as is practicable. To this end, the Board of Directors operates within the 
framework described below.
Workings of the Board and its Committees
The Board of Directors
The Board meets frequently to consider all aspects of the Group’s activities. A formal schedule of matters reserved 
for the Board has been issued and approved and includes overall strategy and approval of major capital expenditure. 
The Board consists of the Chairman, the Chief Executive Officer, Executive Directors and Non-Executive Directors. 
All Directors have access to the advice and services of the Company Secretary and the Group’s professional Advisers. 
Philip Loader, George Canjar and Larry Bottomley are independent Non-Executive Directors.
Remuneration Committee
The Remuneration Committee comprises Adonis Pouroulis (Chairman), George Canjar, Philip Loader and Robert Sinclair. 
Its terms of reference are discussed in the Directors’ Remuneration Report. The Remuneration Committee met twice during 
the period ended 31 December 2011.
Audit Committee
The Audit Committee comprises Robert Sinclair (Chairman), George Canjar, Philip Loader and Larry Bottomley. It meets at 
least twice each year and at any other time when it is appropriate to consider and discuss audit and accounting related issues. 
The Audit Committee is responsible for monitoring the quality of any internal controls and for ensuring that the financial performance 
of the Group is properly monitored, controlled and reported on. It also meets the Group’s external auditors and reviews 
reports from the external auditors relating to accounts and any internal control systems. The Audit Committee met twice 
during the period ended 31 December 2011. 
Nomination Committee
The Nomination Committee comprises Adonis Pouroulis (Chairman), George Canjar, Philip Loader and Robert Sinclair. 
The Committee is responsible for reviewing the structure, size and composition of the Board, preparing a description of the 
role and capabilities required for a particular appointment and identifying and nominating candidates to fill Board positions 
as and when they arise. The Nomination Committee met once during the period ended 31 December 2011.
Relations with shareholders
Communication with shareholders is given a high priority by the Board of Directors which takes responsibility for ensuring 
that a satisfactory dialogue takes place. Directors plan to meet with the Company’s institutional shareholders following the 
announcement of interim and final results and at other appropriate times. The Directors are also in regular contact with 
stockbrokers’ analysts. The Company has developed a website containing investor information to improve communication 
with individual investors and other interested parties.
Internal control
The Directors acknowledge their responsibility for the Group’s system of internal controls and for reviewing its effectiveness. 
The system of internal control is designed to safeguard the Group’s assets and interests and to help ensure accurate reporting 
and compliance with applicable laws and regulation. Despite the inherent limitations in any system of internal control the 
Board considers that the Group’s existing systems operated effectively throughout the period.  Overview Financial Statements Company Overview Business Review Corporate Governance
21 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Report of the Directors
The Directors present their report together with the audited financial statements for the period ended 31 December 2011. 
Results and dividends
The results for the period are set out on page 25.
The Directors do not recommend payment of a final dividend (February 2011: US$Nil).
Subsequent events
Events subsequent to the reporting date are disclosed in note 23.
Principal activity
The principal activity of the Group is that of oil and gas exploration.
Going concern
The Directors consider that the Group has adequate financial resources to enable it to continue in operation for the 
foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.
Business review and principal risks and uncertainties
A full review of the Group’s activities during the period, recent events, and expected future developments is contained 
within the Chairman’s Statement on pages 4 to 5. These pages also form part of this Directors’ Report.
The Group is subject to various risks including those that derive from the nature of its oil and gas exploration activities. 
The following list sets out the Group’s principal risks and uncertainties and also provides details as to how these are managed.
Funding and financing risk
The nature of the Group’s business of exploring in deep offshore regions means that there are significant costs associated 
with seismic and drilling campaigns. The Group manages this risk by a number of means. First the Group closely monitors 
its cash position and each month produces updated cash flow forecasts to help it determine whether it has sufficient financial 
resources to fund its short and medium-term operations. The Group also ensures that it always has adequate levels of cash 
on deposit with varying terms of maturity to match with when significant items of expenditure become due. In addition the 
Group is continually seeking to reduce its exposure to these large expensive projects by engaging with farm-in partners with 
a view to reducing its equity stakes in the licences in which it operates. To date, the Group has been successful in both 
managing its cash position and bringing large well-funded partners into its licences.
Exploration risk
There is no assurance that the Group’s exploration activities will be successful. Recognising this, the Group continually seeks 
to manage this risk by managing its funding and financing risk as described above and in particular by bringing farm-in partners 
who have demonstrable technical skills and experience in similar projects worldwide. The Group has so far been successful 
with this strategy by introducing to its licences strong industry partners such as BP, Petrobras and PGS. Furthermore the Group 
seeks to employ individuals with strong technical skills and experience in the areas in which it operates. This is evidenced by 
the fact that a number of the Group’s Board of Directors and Senior Technical Team have previously worked both offshore 
and onshore in Namibia and throughout West and North Africa.
Operating risk
The nature of oil and gas operations means that the Group is exposed to risks as a result of equipment failure, well blowouts, 
fire, pollution and bad weather. In order to mitigate these risks the Group ensures that it adopts best-in-class industry operating 
and safety standards, it has sufficient levels of industry specific insurance cover and it only works with fellow operators and 
world-class contractors who can demonstrate similar high standards of safety, operating and financial capability. This is 
being evidenced in the Group’s currently operated drilling activity, where well construction, management and design are 
being carried out on the Group’s behalf by Senergy, a company with significant deepwater drilling experience and excellent 
management processes and safety record. Senergy has successfully undertaken this role in over 70 wells to date including 
eight recent deepwater wells in both offshore Greenland and West Africa. Integrated drilling services are supplied by Schlumberger, 
one of the major service companies in the sector and the drilling rig, which is being contracted from and operated by Maersk, 
one of the foremost and most reliable contractors, is a recent sixth generation semi-submersible, which is extremely well 
suited for the drilling operation to be undertaken.  22 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Report of the Directors continued
Business review and principal risks and uncertainties continued
Environmental risk
The Group is extremely conscious of the environmental risks that are inherent in the oil and gas industry and in particular 
those that exist as a result of operating offshore. Given this, the Group has worked closely with the Namibian Government 
and Ministry of Mines and Energy Namibia to ensure that all relevant Environmental Impact Studies are undertaken in advance 
of any proposed seismic or other offshore operations that it has undertaken and that best-in-class industry environmental 
standards and practices are adopted by the Group in all of its operations. This is currently being demonstrated by the Group 
contracting with the UK-based company Oil Spill Response Limited (“OSR”), a recognised leader in this area. The Group is 
engaging OSR for readiness planning and potential execution concerning i) any potential pollution incident and ii) emergency 
response planning related to the Group’s upcoming drilling programme. Furthermore during seismic acquisition programmes 
the Company routinely deploys Marine Mammal Observers on vessels who are empowered to stop or modify the seismic 
programme it they deem necessary. Whilst the Group can never fully mitigate against the cost and implications of future changes 
in environmental legislation and regulation, its strong working relationship with the Namibian Government and Ministry of 
Mines and Energy places it in a strong position to be able to work through any potential significant changes that could arise 
in the future.
Exchange rate risk
Although the Group’s functional currency is in United States Dollars and the significant proportion of its oil and gas expenditure 
is also in United States Dollars, it still has certain expenditure items that it is required to fund in Sterling and Namibian Dollars. 
In order to reduce its exchange risk on these non-United States Dollar expenditure items, the Group maintains sufficient levels 
of its cash resources in Sterling and Namibian Dollars to pay these expenses. In addition, upon receipt of the Sterling proceeds 
of its US$140 million placing and its US$47 million placing post period end, the Group immediately converted these proceeds 
in United States Dollars rather than holding significant amounts of Sterling for any period of time.
Key performance indicators
The Group has certain key performance indicators (“KPIs”) which seek to align its performance with the interests of its key 
stakeholders. These KPIs cover share price performance versus peers, management of cash resources and working capital, 
efficient growth of resource base, conversion of resources to reserves and maintaining high HSE standards.
Financial instruments 
Details of the use of financial instruments by the Group are contained in note 20 to the Financial Statements.
Directors
The Directors of the Company during the period were:
Paul Welch (Chief Executive Officer)   
James Burgess (Executive Director)  
Heindrich Ndume (Executive Director)  
Adonis Pouroulis (Chairman)  
Robert Sinclair (Non-Executive Director)  
George Canjar (Non-Executive Director)  
Philip Loader (Non-Executive Director) 
Larry Bottomley (Non-Executive Director)  Appointed 1 September 2011.  
Details of Directors’ interests in shares and share options are disclosed in the Remuneration Report on pages 18 to 19.
Significant shareholders 
Those shareholders that hold 3% or more of the issued share capital of Chariot Oil & Gas Limited are: 
Westward Investments Limited 11.8%
Protech Namibia (Pty) Limited 11.0%
Baillie Gifford & Co 9.0%
Janus Capital Management 8.2%
MSD Capital 4.3%
Barclays Personal Investment Management 3.5%
Fidelity Investments 3.3%
Approximate percentage of ordinary shares not in public hands: 25%. Overview Financial Statements Company Overview Business Review Corporate Governance
23 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Directors’ responsibilities
The Directors are responsible for preparing the Directors’ Report and the financial statements for the Group in accordance 
with applicable Guernsey law and regulations.
Guernsey legislation requires the Directors to prepare financial statements for each financial year which give a true and fair 
view of the state of affairs of the Group and of the profit or loss of the Group for that year.
International Accounting Standard 1 requires that the financial statements present fairly for each financial year the Group’s 
financial position, financial performance and cash flows. This requires the faithful representation of the effects of transactions, 
other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses 
set out in the International Accounting Standards Board’s “Framework for the preparation and presentation of financial 
statements”. In virtually all circumstances, a fair presentation will be achieved by compliance with all applicable International 
Financial Reporting Standards (“IFRS”). A fair presentation also requires the Directors to:
k  consistently select and apply appropriate accounting policies;
k  present information, including accounting policies, in a manner that provides relevant, reliable, comparable and 
understandable information;
k  provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to 
understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial 
performance; and
k  prepare the financial statements on a going concern basis unless, having assessed the ability of the Group to continue as a going 
concern, management either intends to liquidate the entity or to cease trading, or have no realistic alternative but to do so.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time 
the financial position of the Group and to enable them to ensure that the financial statements comply with The Companies 
(Guernsey) Law 2008. They are also responsible for safeguarding the assets of the Group and hence for taking reasonable 
steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
Group’s website. Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions. 
Auditors
All of the current Directors have taken all the steps they ought to have taken to make themselves aware of any information 
needed by the Company’s auditors for the purposes of their audit and to establish that the auditors are aware of that 
information. The Directors are not aware of any relevant audit information of which the auditors are unaware.
BDO LLP were appointed as auditors of the Group by the Directors. BDO LLP have expressed their willingness to continue 
in office and a resolution to reappoint them as auditors will be proposed at the next general meeting.
By order of the Board
Robert Sinclair
Director 
19 March 2012 24 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Independent auditors’ report 
to the members of Chariot Oil & Gas Limited
We have audited the financial statements of Chariot Oil & Gas Limited for the period ended 31 December 2011 which comprise 
the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated 
statement of changes in equity, the consolidated statement of cash flows and the related notes. The financial reporting framework 
that has been applied in their preparation is in accordance with applicable law and IFRS as adopted by the European Union.
This report is made solely to the Company’s members, as a body, in accordance with Section 262 of the Companies (Guernsey) 
Law, 2008. Our audit work is undertaken so that we might state to the Company’s members those matters we are required 
to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept 
or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, 
for this report, or for the opinions we have formed.
Respective responsibilities of the Directors and auditors
As explained more fully in the Directors’ Responsibilities Statement within the Directors’ Report, the Directors are responsible 
for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and 
International Standards on Auditing. Those standards require us to comply with the Auditing Practices Board’s (“APB’s”) 
Ethical Standards for Auditors.
Scope of the audit of the financial statements 
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. 
This includes an assessment of: whether the accounting policies are appropriate to the Company’s circumstances and have 
been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the 
Directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial 
information in the Directors’ Report to identify material inconsistencies with the audited financial statements. If we become 
aware of any apparent misstatements or inconsistencies we consider the implications for our report.
Opinion on the financial statements 
In our opinion the financial statements:
k  give a true and fair view of the state of the Company’s affairs as at 31 December 2011 and of its loss for the period 
then ended;
k  have been properly prepared in accordance with IFRS as adopted by the European Union; and
k  have been properly prepared in accordance with the requirements of the Companies (Guernsey) Law, 2008.
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies (Guernsey) Law, 2008 requires us to 
report to you if, in our opinion:
k  proper accounting records have not been kept by the Company; 
k  the financial statements are not in agreement with the accounting records; or
k  we have failed to obtain all the information and explanations, which, to the best of our knowledge and belief, are necessary 
for the purposes of our audit.
BDO LLP 
55 Baker Street
London
W1U 7EU
19 March 2012
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127). Overview Company Overview Business Review
25 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
Consolidated statement of comprehensive income
for the period ended 31 December 2011
Note
Period ended 
31 December 
2011
US$’000
Year ended 
28 February 
2011
US$’000
Share based payments (2,382) (2,379)
Other administrative expenses (5,554) (4,982)
Total administrative expenses (7,936) (7,361)
Loss from operations 4 (7,936) (7,361)
Finance (costs)/income 7 (1,223) 67
Loss for the period/year before taxation (9,159) (7,294)
Taxation expense 9 — —
Loss for the period/year attributable to the equity holders of the parent (9,159) (7,294)
Other comprehensive income:
Total comprehensive income attributable to the equity holders of the parent (9,159) (7,294)
Loss per ordinary share attributable  
to the equity holders of the parent – basic and diluted 10 US$(0.05) US$(0.05)
All amounts relate to continuing activities.
The notes on pages 29 to 40 form part of these financial statements. 26 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Consolidated statement of changes in equity
for the period ended 31 December 2011
Share 
capital
US$’000
Share 
premium
US$’000
Contribution 
equity
US$’000
Share based 
payments 
reserve
US$’000
Foreign 
exchange 
reserve
US$’000
Retained 
deficit
US$’000
Total 
attributable to 
equity holders 
of the parent
US$’000
As at 28 February 2010 2,802 133,209 — 4,956 (1,241) (34,189) 105,537
Total comprehensive 
income for the year — — — — — (7,294) (7,294)
Issue of capital 55 2,151 — — — — 2,206
Share based payments — — 796 1,583 — — 2,379
Transfer of reserves  
due to lapsed warrants 
and options — — — (1,505) — 1,505 —
Transfer of reserves  
due to exercised 
warrants and options — — — (1,756) — 1,633 (123)
As at 28 February 2011 2,857 135,360 796 3,278 (1,241) (38,345) 102,705
Total comprehensive 
income for the period — — — — — (9,159) (9,159)
Issue of capital 595 146,410 — — — — 147,005
Issue costs — (6,262) — — — — (6,262)
Share based payments — — — 2,382 — — 2,382
Transfer of reserves  
due to issue of LTIPs 5 377 — (382) — — —
Transfer of reserves  
due to exercised options — — — (889) — 889 —
As at 31 December 2011 3,457 275,885 796 4,389 (1,241) (46,615) 236,671
The following describes the nature and purpose of each reserve within owners’ equity:
Share capital Amount subscribed for share capital at nominal value.
Share premium Amount subscribed for share capital in excess of nominal value.
Contribution equity Amount representing equity contributed by the shareholders. 
Share based payments reserve  Amount representing the cumulative charge recognised under IFRS 2 in respect of share 
options and LTIP schemes.
Foreign exchange reserve Foreign exchange differences arising on translating into the reporting currency.
Retained deficit Cumulative net gains and losses recognised in the financial statements.
The notes on pages 29 to 40 form part of these financial statements.  Overview Company Overview Business Review
27 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
Consolidated statement of financial position
at 31 December 2011
Note
31 December 
2011
US$’000
28 February 
2011
US$’000
Non-current assets
Exploration and appraisal costs 11 88,889 92,661
Property, plant and equipment 12 221 399
Total non-current assets 89,110 93,060
Current assets
Trade and other receivables 13 20,465 1,041
Inventory 14 4,678 —
Cash and cash equivalents 15 128,990 9,222
Total current assets 154,133 10,263
Total assets 243,243 103,323
Current liabilities
Trade and other payables 16 6,572 618
Total current liabilities 6,572 618
Total liabilities 6,572 618
Net assets 236,671 102,705
Capital and reserves attributable to equity holders of the parent
Share capital 17 3,457 2,857
Share premium account 275,885 135,360
Contributed equity 796 796
Share based payments reserve 4,389 3,278
Retained deficit (46,615) (38,345)
Foreign exchange reserve (1,241) (1,241)
Total equity 236,671 102,705
The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2012.
Adonis Pouroulis
Chairman
The notes on pages 29 to 40 form part of these financial statements. 28 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Consolidated cash flow statement
for the period ended 31 December 2011
Period ended 
31 December 
2011
US$’000
Period ended 
31 December 
2011
US$’000
Year ended 
28 February 
2011
US$’000
Year ended 
28 February 
2011
US$’000
Loss for the year before taxation (9,159) (7,294)
Finance income (886) (52)
Depreciation 171 61
Gain on sale of property plant and equipment (5) —
Foreign exchange differences 2,109 (15)
Share based payment expense 2,382 2,379 
3,771 2,373
Net cash flow from operating activities before 
changes in working capital (5,388) (4,921)
Increase in trade and other receivables (720) (318)
Increase in trade and other payables 347 138
Increase in inventories (4,678) —
Net cash outflow from operating activities (10,439) (5,101)
Investing activities
Finance income 886 52
Payments in respect of property, plant and equipment (19) (148)
Payments in respect of intangible assets (9,324) (3,906)
Proceeds from disposal of property, plant and equipment 30 — 
Cash outflow used in investing activities (8,427) (4,002)
Financing activities
Issue of ordinary share capital 147,005 2,084
Issue costs (6,262) — 
Net cash flow from financing activities 140,743 2,084
Net increase/(decrease) in cash  
and cash equivalents in the period/year 121,877 (7,019)
Cash and cash equivalents at start of period/year 9,222 16,226
Effect of foreign exchange rate changes  
on cash and cash equivalents (2,109) 15
Cash and cash equivalents at end of period/year (note 15) 128,990 9,222
The notes on pages 29 to 40 form part of these financial statements. Overview Company Overview Business Review
29 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
Notes forming part of the financial statements
for the period ended 31 December 2011
1. General information
Chariot Oil & Gas Limited is a company incorporated and domiciled in Guernsey with registration number 47532. The address 
of the registered office is PO Box 282, Regency Court, Glategny Esplanade, St Peter Port, Guernsey GY1 3RH. The Group’s 
administrative and head office is in Guernsey. The nature of the Company’s operations and its principal activities are set out 
in the Directors’ Report and in the Review of Operations.
The functional currency and presentational currency of the Group is US Dollars.
2. Accounting policies
Basis of preparation
The financial statements have been prepared in accordance with IFRS and IFRIC interpretations, as issued by the International 
Accounting Standards Board (“IASB”), as adopted by the European Union. 
In accordance with the provisions of Section 244 of the Companies (Guernsey) Law, 2008, the Group has chosen to only 
report the Group’s consolidated position, hence separate Company-only financial statements are not presented.
The financial statements are prepared under the historical cost accounting convention on a going concern basis.
The Group changed its financial year end for administration purposes from 28 February to 31 December giving rise to a ten month 
period. As a result financial information for the income statement and cash flow movements are not directly comparable.
Going concern 
The Directors are of the opinion that the Group has adequate financial resources to enable it to undertake its planned 
programme of exploration and appraisal activities over the forthcoming 12 months. 
New accounting standards
The following new standards and amendments to standards are mandatory for the first time for the Group from 1 March 2011. 
Except as noted, the implementation of these standards is not expected to have a material effect on the Group. 
International Accounting Standards (“IAS/IFRS”) Effective date
IAS 24 Revised “Related  
Party Disclosures”
The structure of definition of a related party has been simplified and 
inconsistencies eliminated. Illustrative examples have also been added.  
The entities that are most likely to be affected are those that are part of  
a group that includes both subsidiaries and associates, and entities with 
shareholders that are involved with other entities. 
1 January 2011
Improvements  
to IFRS (2010)
The improvements in this amendment clarify the requirements of IFRS and 
eliminate inconsistencies within and between standards. The improvements  
did not have any impact on the current or prior years’ financial statements.
1 January 2011
No other IFRS issued and adopted but not yet effective are expected to have an impact on the Group’s financial statements. 
Standards, amendments and interpretations, which are effective for reporting periods beginning after the date of these 
financial statements and have not been adopted early are:
Standard Description Effective date
IFRS 7 Transfers of Financial Assets 1 July 2011
IFRS 1 Sever Hyperinflation and Removal of Fixed Dates for First-time Adopters (amendment) 1 July 2011
IAS 12 Deferred Tax: Recovery of Underlying Assets 1 January 2012
IAS 1 Presentation of Items of Other Comprehensive Income 1 July 2012
IFRS 9 Financial Instruments 1 January 2013
IFRS 10 Consolidated Financial Statements 1 January 2013
IFRS 11 Joint Arrangements 1 January 2013
IFRS 12 Disclosure of Interests in Other Entities 1 January 2013
IFRS 13 Fair Value Measurement 1 January 2013
IAS 27 Separate Financial Statements 1 January 2013
IAS 28 Investments in Associates and Joint Ventures 1 January 2013
IAS 19 Employee Benefits 1 January 2013
IFRS 7 Financial Instrument Disclosures 1 January 2013
IFRS 32 Financial Instrument Presentation 1 January 2014
The Group has not yet assessed the impact of IFRS 9. 
The above revised standards, amendments and interpretations are not expected to materially affect the Group’s reporting 
or reported numbers.  30 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
2. Accounting policies continued
Exploration and appraisal costs
The Group applies the full-cost method of accounting under which all expenditure relating to the acquisition, exploration, 
appraisal and development of oil and gas interests, including an appropriate share of directly attributable overheads, is capitalised 
within cost pools. The Board regularly reviews the carrying values of intangible assets and writes down capitalised expenditure 
to levels it considers to be recoverable based on economic modelling of the amounts. Costs pools are determined on the 
basis of geological principles. The Group currently has three cost pools in its offshore Namibian acreage, Northern, Central 
and Southern, which are based on three geologically distinct settings. 
Where farm-in transactions occur that include elements of cash consideration for, amongst other things, the reimbursement of 
past costs, this cash consideration should be credited to the relevant accounts within the cost pools where the farm-in assets 
were located. Any amounts of farm-in cash consideration in excess of the value of the historic costs in the cost pools should 
be treated as a credit to the statement of comprehensive income.
Inventories
The Group’s share of any material and equipment inventories is accounted for at the lower of cost and net realisable value. 
Net realisable value is the estimated selling price less the estimated costs of completion and the estimated costs necessary 
to make the sale. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in 
bringing the inventories to their present location and condition.
Taxation
Income tax expense represents the sum of the current tax and deferred tax charge for the period.
Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements 
and the corresponding tax bases and is accounted for using the balance sheet liability method. Deferred tax liabilities are 
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that 
taxable profits will be available against which deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer 
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that have been enacted or substantially enacted and are expected to apply in the 
year when the liability is settled or the asset realised. Deferred tax is charged or credited to the income statement, except 
when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against 
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends 
to settle its current tax assets and liabilities on a net basis.
Foreign currencies
Transactions entered into by Group entities in a currency other than the currency of the primary economic environment in 
which they operate (their “functional currency”) are recorded at the rates ruling when the transactions occur. Foreign currency 
monetary assets and liabilities are translated at the rates ruling at the reporting date. Exchange differences arising on the 
retranslation of unsettled monetary assets and liabilities are recognised immediately in the statement of comprehensive 
income, except for foreign currency borrowings qualifying as a hedge of a net investment in a foreign operation, in which 
case exchange differences are recognised in other comprehensive income and accumulated in the foreign exchange reserve.
When a gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of 
that gain or loss shall also be recognised in other comprehensive income. Conversely, when a gain or loss on a non-monetary 
item is recognised in profit or loss, any exchange component of that gain or loss shall also be recognised in profit or loss.
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or fair value on acquisition less depreciation and impairment. Depreciation 
is provided on a straight line basis at rates calculated to write off the cost less the estimated residual value of each asset over 
its expected useful economic life. The residual value is the estimated amount that would currently be obtained from disposal 
of the asset if the asset were already of the age and in the condition expected at the end of its useful life. 
Property, plant and equipment are depreciated using the straight line method over their estimated useful lives over a range 
of 2.5 to five years.
The carrying value of property, plant and equipment is assessed annually and any impairment charge is charged to the 
statement of comprehensive income.
The Group capitalises the portion of depreciation that relates to tangible fixed assets used in oil exploration activities when 
capitalised; this depreciation is allocated to exploration and appraisal costs. Overview Company Overview Business Review
31 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
2. Accounting policies continued
Leases
Rent paid on operating leases is charged to the income statement on a straight line basis over the term of the lease.
Share based payments
Where equity settled share options are awarded to employees, the fair value of the options at the date of grant is charged 
to the income statement over the vesting period. Non-market vesting conditions are taken into account by adjusting the 
number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount 
recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are 
factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made 
irrespective of whether the market vesting conditions are satisfied. The cumulative expense is not adjusted for failure 
to achieve a market vesting condition.
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, 
measured immediately before and after the modification, is also charged to the consolidated income statement over 
the remaining vesting period.
Where equity instruments are granted to persons other than employees, in exchange for goods and services supplied, the 
consolidated income statement is charged with the fair value of goods and services received. Where the equity instruments 
are granted for goods and services that are capital in nature, the fair value is charged to the intangible asset value. 
Where shares already in existence have been given to employees by shareholders, the fair value of the shares transferred 
is charged to the consolidated statement of comprehensive income and recognised in reserves as contribution equity.
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another 
entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated financial statements 
present the results of the Company and its subsidiaries (the “Group”) as if they formed a single entity. Intercompany transactions 
and balances between the Group companies are therefore eliminated in full.
Financial instruments
The Group’s financial assets consist of a bank current account or short-term deposits at variable interest rates, loans and 
other receivables. Any interest earned is accrued and classified as finance income. Trade and other receivables are stated 
initially at fair value and subsequently at amortised cost.
The Group’s financial liabilities consist of trade and other payables. The trade and other payables are stated initially at fair 
value and subsequently at amortised cost. The Group has no derivative liabilities.
Jointly controlled operations
Jointly controlled operations are those in which the Group has certain contractual agreements with other participants to engage 
in joint activities that do not create an entity carrying on a trade or business on its own. The Group includes its share of assets, 
liabilities and cash flows in joint arrangements, measured in accordance with the terms of each arrangement, which is usually 
pro rata to the Group’s interest in the jointly controlled operations. The Group conducts its exploration, development and 
production activities jointly with other companies in this way.
Critical accounting estimates and judgements 
The Group makes estimates and assumptions regarding the future. Estimates and judgements are continually evaluated 
based on historical experiences and other factors, including expectations of future events that are believed to be reasonable 
under the circumstances. In the future, actual experience may deviate from these estimates and assumptions. If these 
estimates and assumptions are significantly over or under stated, this could cause a material adjustment to the carrying 
amounts of assets and liabilities within the next financial year. The areas where this could impact the Group are:
i. Recoverability of intangible assets
Under the full-cost based method of accounting, the Group capitalises exploration costs until it is capable of determining 
whether its exploration efforts were successful and, if they were successful, whether any impairment charges may be 
required to bring the net book values of assets in line with their economic values.
ii. Treatment of farm-in transactions
All farm-in transactions are reflected in these financial statements in line with the accounting policy on exploration and 
appraisal costs. Farm-in transactions are recognised in the financial statements if they are legally complete during the period 
under review or if all key commercial terms are agreed and legal completion is only subject to administrative approvals which 
are obtained within the post balance sheet period or are expected to be obtained within a reasonable timeframe thereafter. 32 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
2. Accounting policies continued
Critical accounting estimates and judgements continued
iii. Impairment review
The carrying amounts of the Group’s assets are reviewed at each reporting date in accordance with IAS 36 “Impairment 
of Assets” and, if there is any indication that an asset may be impaired, its recoverable amount is estimated. The recoverable 
amount is the higher of its net selling price and its value in use. 
Estimates on impairment are limited to an assessment by the Directors of any events or changes in circumstance that would 
indicate that the carrying value of the asset may not be recoverable. 
Any impairment loss arising from the review is charged to administrative expenses whenever the carrying amount of the asset 
exceeds its recoverable amount. 
Share based payments
Directors’ best estimate of the valuations underlying the share based payments are based on assumptions made by them 
using updated models previously prepared by external consultants. See note 21 for further details of these assumptions.
3. Segmental analysis 
In the opinion of the Directors, the operations of the Group companies comprise one single class of business including oil 
and gas exploration. The Group operates in one geographic area, Namibia. The financial information presented reflects all 
the activities of this single business.
December 2011
Exploration of 
oil and gas
US$’000
Unallocated
US$’000
Total
US$’000
Administrative expenses (777) (7,159) (7,936)
Loss after taxation (777) (8,382) (9,159)
Non-current assets 89,004 107 89,110
Total assets 113,449 129,794 243,243
Total liabilities (5,105) (1,467) (6,572)
February 2011
Exploration of 
oil and gas
US$’000
Unallocated
US$’000
Total
US$’000
Administrative expenses (456) (6,890) (7,346)
Loss after taxation (448) (6,846) (7,294)
Non-current assets 92,903 157 93,060
Total assets 93,644 9,679 103,323
Total liabilities (109) (5,109) (618)
4. Loss from operations
31 December 
2011
US$’000
28 February 
2011
US$’000
Loss from operations is stated after charging/crediting:
Depreciation 171 61
Share based payments – share option scheme 755 913
Share based payments – long-term incentive scheme 1,627 670
Share based payments from a contributed equity — 796
Professional and consultancy fees 410 930
Auditors’ remuneration:
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts 69 66
Audit of the Company’s subsidiaries pursuant to legislation 36 35
Total payable 105 101 Overview Company Overview Business Review
33 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
5. Lease commitments
31 December 
2011
US$’000
28 February 
2011
US$’000
Not later than one year 236 303
Later than one year and not later than five years — 202
Later than five years — —
Total 236 505
The leases are operating leases in relation to the offices in the UK and Namibia. 
6. Employees
31 December 
2011
US$’000
28 February 
2011
US$’000
Key management personnel remuneration 1,426 1,493
Wages and salaries – staff costs 2,559 2,060
Amounts paid to third parties in respect of Directors’ services 137 225
Pension costs 117 91
Total employee costs before non-cash items 4,239 3,869
Share based payments expense (note 21) 2,382 2,379
Total employee costs 6,621 6,248
Key management personnel are considered to be Directors.
The above employment costs include the following amounts which have been capitalised to exploration costs: 
k  included in key management personnel remuneration is an amount of US$625,625 (28 February 2011: US$371,625);
k  included in wages and salaries is an amount of US$1,055,561 (28 February 2011: US$876,130); and
k  included in pension costs is an amount of US$37,164 (28 February 2011: US$22,983).
Total emoluments paid to key management personnel include remuneration and amounts paid to third parties in respect of 
Directors’ services. In the ten months to 31 December 2011 total emoluments paid to key management personnel amounted 
to US$1,563,000 (28 February 2011: US$1,718,000), of which US$10,000 related to long-term benefits (28 February 2011: US$12,000).
Within share based payments expense, the portion relating to key management personnel amounted to US$625,982 
(28 February 2011: US$1,060,793). The 28 February 2011 balance also included US$435,000, which was the value attributable 
to the transfer of shares from Westward Investment Limited to a Director. 
7. Finance income and expense
31 December 
2011
US$’000
28 February 
2011
US$’000
Bank interest receivable 886 52
Foreign exchange (loss)/gain (2,109) 15
Net finance (loss)/gain (1,223) 67 34 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
8. Investments 
The Company’s directly
(1)
 and indirectly
(2)
 held wholly owned subsidiary undertakings at 31 December 2011  
and 28 February 2011 were:
Subsidiary undertaking Principal activity
Country of 
incorporation
Enigma Oil & Gas Exploration (Pty) Limited
(2)
Oil and gas exploration Namibia
Chariot Oil & Gas Investments (Namibia) Limited
(1)
Holding company Guernsey
Chariot Oil & Gas Statistics Limited
(1) 
Services company UK
Enigma Petroleo Y Gas N.V
(2)
Holding company Dutch Antilles
Enigma Oil & Gas Fourteen (Pty) Ltd
(2)
Holding company Namibia
Enigma Oil & Gas Fifteen (Pty) Ltd
(2)
Holding company Namibia
Enigma Oil & Gas Nineteen (Pty) Ltd
(2)
Holding company Namibia
Enigma Oil & Gas Beta (Pty) Ltd
(2)
Holding company Namibia
9. Taxation
The Company is tax resident in Guernsey, where corporate profits are taxed at 0%.
No taxation charge arises in Namibia as the Namibian subsidiary has recorded a taxable loss for the period.
Factors affecting the tax charge for the current period
The reasons for the difference between the actual tax charge for the period and the standard rate of corporation tax 
in Guernsey applied to profits for the period are as follows:
31 December 
2011
US$’000
28 February 
2011
US$’000
Tax reconciliation
Loss on ordinary activities for the year before tax (9,159) (7,294)
Loss on ordinary activities at the standard rate of corporation tax in Guernsey of 0%  
(28 February 2011: 0%) — —
Difference in tax rates in local jurisdictions at the applicable tax rate of 35%  
(28 February 2011: 35%) (230) (217)
Deferred tax effect not recognised 230 217
Total taxation charge — —
The Company had tax losses carried forward on which no deferred tax asset is recognised. Deferred tax not recognised in 
respect of losses carried forward in Namibia total US$1,563,387 (28 February 2011: US$1,509,390). Deferred tax assets were 
not recognised as there is uncertainty regarding the timing of future profits against which these assets could be utilised.
Namibian taxation and royalties
Normal taxation
The petroleum income tax is payable annually at a rate of 35% (28 February 2011: 35%) of the taxable income received 
by or accrued to any person from a licence area in connection with exploration, development or production operations 
in that area. Each licence area is assessed separately and losses in one cannot be set off against profits in another.
Additional profits tax (“APT”)
In addition to the above petroleum income tax, APT will also be assessed annually. APT is determined on the basis of the rate 
of return on the project and will be levied on the project’s net cash receipt, i.e. the after tax net cash flow achieved above certain 
defined tiers of threshold rate of return on the project. APT is payable at the end of each tax year on each petroleum licence 
area and the first tier rate of APT is 25%.
10. Loss per share
The calculation of basic loss per ordinary share is based on a loss of US$9,159,000 (28 February 2011: loss of US$7,294,000) 
and on 177,122,359 ordinary shares (28 February 2011: 144,330,066), being the weighted average number of ordinary shares 
in issue during the period. Potentially dilutive options are detailed in note 21; however, these do not have any dilutive impact 
as the Group reported a loss for the period. Consequently a separate diluted loss per share has not been presented.  Overview Company Overview Business Review
35 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
11. Exploration and appraisal costs
Cost and net book value
US$’000
At 28 February 2010 88,582
Additions 4,079
At 28 February 2011 92,661
Additions 15,376
Farm-in proceeds (19,148)
At 31 December 2011 88,889
As at 31 December 2011 the net book values of the three cost pools used by the Group are Northern: US$29.4 million 
(28 February 2011: US$25.6 million), Central: US$27.8 million (28 February 2011: US$18.6 million) and Southern: US$31.7 million 
(28 February 2011: US$48.5 million).
12. Property, plant and equipment
Fixtures, fittings and equipment
31 December 
2011
US$’000
28 February 
2011
US$’000
Cost
At 1 March 2011 805 659
Additions for the period/year 19 148
Disposals for the period/year (87) (2)
At 28 February and 31 December 2011 737 805
Depreciation
At 1 March 2011 406 173
Charge for the period/year
(1)
171 233
Disposals for the period/year (61) —
At 28 February and 31 December 2011 516 406
Net book value 221 399
(1)  US$Nil (28 February 2011: US$173,000) of the depreciation charge relates to oil exploration activities and has been capitalised to exploration and appraisal costs 
during the year. 
13. Trade and other receivables
31 December 
2011
US$’000
28 February 
2011
US$’000
Other receivables and prepayments 20,465 1,041
Maturity analysis of financial assets
Amounts due:
Under three months 20,197 629
Between three and six months — —
Over six months 95 100
20,292 729
The receivable balance is current and not overdue. US$19,148,000 of the other receivables and prepayments balance relates 
to back costs to be recovered from a farm-in partner, the significant majority of which has been received post the reporting period.
14. Inventory
31 December 
2011
US$’000
28 February 
2011
US$’000
Wellheads and casing for drilling campaign 4,678 — 36 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
15. Cash and cash equivalents
31 December 
2011
US$’000
28 February 
2011
US$’000
Analysis by currency
Sterling balance 27,072 955
Namibian Dollar balance 46 17
US Dollar balance 101,872 8,250
128,990 9,222
16. Trade and other payables
31 December 
2011
US$’000
28 February 
2011
US$’000
Trade payables 2,142 350
Accruals 4,430 268
6,572 618
Maturity analysis of financial liabilities
Amounts payable:
Under three months 6,572 618
6,572 618
Trade payables and accruals principally comprise amounts outstanding for drilling materials and services and other ongoing costs. 
The carrying value has been assessed as the fair value of the trade and other payables. 
17. Share capital
Authorised
31 December 
2011
Number
31 December 
2011
US$’000
28 February 
2011
Number
28 February 
2011
US$’000
Ordinary shares of 1p each
(1)
400,000,000 7,980 400,000,000 7,980
Allotted, called up and fully paid
31 December 
2011
Number
31 December 
2011
US$’000
28 February 
2011
Number
28 February 
2011
US$’000
Ordinary shares of 1p each
(1)
181,649,221 3,457 144,833,578 2,857
(1)  The authorised and initially allotted and issued share capital on admission (19 May 2008) has been translated at the historic rate of GBP1=US$1.995. The shares 
issued since admission have been translated at the rates ruling on each transaction date. 
Details of the ordinary shares issued during the period are given in the table below:
Date Description Price US$ Number of shares
28 February 2011 Opening balance 144,833,578
7 March 2011 Issue of shares as part of LTIP 0.56 227,142
1 April 2011 Issue of capital at £2.50 4.08 35,958,376
3 June 2011 Issue of shares as part of LTIP 1.70 85,000
8 August 2011 Issue of shares as part of LTIP 1.95 10,000
1 September 2011 Exercise of options at £0.385 0.63 500,000
29 November 2011 Issue of shares as part of LTIP 2.92 35,125
At 31 December 2011 181,649,221 Overview Company Overview Business Review
37 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
18. Capital commitments
At the reporting date the Group had capital commitments relating to the 3D seismic programme on the Central Blocks 
and the drilling campaign on the Northern Blocks of US$15.8 million (28 February 2011: US$Nil).
19. Related party transactions 
Details of Directors/key management personnel related party transactions are detailed below. The key management 
personnel are considered to be the Directors; see note 6 for details of their remuneration.
k  Westward Investments Limited (“Westward”) is a company of which Robert Sinclair is a director and which is owned by a 
discretionary trust of which Adonis Pouroulis is one of a number of beneficiaries. During the ten months to 31 December 2011 
Westward received administrative services from an employee of Chariot for which Westward incurred fees payable 
to Chariot of US$10,088 (28 February 2011: US$23,053). The amount outstanding as at 31 December 2011 is US$983 
(28 February 2011: US$5,912).
k  Benzu Resources Limited (“Benzu”) is a company of which Adonis Pouroulis is a director. During the ten months to 
31 December 2011 Benzu received administrative services from the same employee of Chariot as detailed in the note 
above for which Benzu incurred fees payable to Chariot of US$10,088 (28 February 2011: US$Nil). The amount outstanding 
as at 31 December 2011 is US$983 (28 February 2011: US$Nil).
k  During the year ended 28 February 2011, Westward transferred 291,667 of the shares it held in the Company to Chariot Oil 
& Gas employees, including Paul Welch (CEO). This transfer of shares is treated as a capital contribution in the books of the 
Company and was valued at US$796,000.
k  Pursuant to an agreement dated 1 October, 2007, Artemis Trustees Limited, a company of which Robert Sinclair is a director 
and ultimately a shareholder, was appointed by the Company to provide administration secretarial services. In the ten month 
period to 31 December 2011 the Company incurred fees relating to these services totalling US$92,045 (28 February 2011: 
US$142,651). The amount outstanding as at 31 December 2011 is US$15,816 (28 February 2011: US$21,117).
k  Pella Ventures Limited, a company of which Robert Sinclair is a director, provided administrative services to Chariot. During 
the ten months to 31 December 2011 the fees payable by the Company totalled US$159,965 (28 February 2011: US$Nil). 
There was no balance payable at the reporting date. 
k  During the ten months ended 31 December 2011, Helios Oil & Gas Limited, a company of which Adonis Pouroulis, Paul Welch and 
Larry Bottomley are directors, paid Chariot US$97,442 in relation to the reimbursement of costs incurred by Chariot on its behalf. 
As at 31 December 2011 a further US$1,188 of reimbursable costs were still outstanding to Chariot (28 February 2011: US$Nil).
k  Chromex Mining PLC (“Chromex”), a company of which James Burgess and Robert Sinclair were directors, did not provide 
any services to the Group during the ten months to 31 December 2011. However, during the year ended 28 February 2011, 
Chromex provided services and facilities to the Group and received fees for this totalling US$10,496. In the same period 
Chariot also provided services and facilities to Chromex and the fees due from Chromex for these services and facilities 
totalled US$7,196. A receivable for this amount was due to the Group as at 28 February 2011. Chromex, however, has since 
been acquired and the new owners are disputing this outstanding balance. Given this, the Group has made full provision 
against this receivable.
k  Fintragh Trading and Consulting Limited, a company of which Peter Kidney, a former Director of Chariot, was also a former 
director, provided professional services for the Group during the year ended 28 February 2011 and received fees totalling 
approximately US$94,408. No services were provided in the ten months to 31 December 2011. 
k  Petra Diamonds Limited, a company of which Adonis Pouroulis is a director, utilised office space and facilities during the 
year ended 28 February 2011 and paid the Company US$21,160. As at 28 February 2011 a debtor balance of US$6,532 
was outstanding. Petra Diamonds moved office premises in March 2011 and thus no fees were received from the 
company for the ten months to 31 December 2011. 38 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
20. Financial instruments
The Board of Directors determines, as required, the degree to which it is appropriate to use financial instruments or other 
hedging contracts or techniques to mitigate risk. Throughout the period ended 31 December 2011 no trading in financial 
instruments was undertaken (28 February 2011: Nil). There is no material difference between the book value and fair value 
of the Group cash balances, short-term receivables and payables.
Market risk
Market risk arises from the Group’s use of interest bearing and foreign currency financial instruments. It is the risk that future 
cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) and foreign exchange 
rates (currency risk). Throughout the period the Group has held surplus funds on deposit, principally with its main relationship 
bank, Barclays, on fixed short-term deposits covering periods of one week to six months. The Group does not undertake any 
form of speculation on long-term interest rates or currency movements; therefore it manages market risk by maintaining a 
short-term investment horizon and placing funds on deposit to optimise short-term yields where possible, but moreover to 
ensure that it always has sufficient cash resources to meet payables and other working capital requirements when necessary. 
As such market risk is not viewed as a significant risk to the Group. The Directors have not disclosed interest rate sensitivity 
analysis on the Group’s financial assets and liabilities at the year end as the risk is not deemed to be material.
Currency risk
The Group has very limited currency risk in respect of items denominated in foreign currencies. Currency risk comprises 
transactional exposure in respect of operating costs and capital expenditure incurred in currencies other than the functional 
currency of operations. 
This transactional risk is managed by the Group holding the majority of its funds in US Dollars to recognise that US Dollars is 
the trading currency of the industry, with an appropriate balance maintained in Sterling and Namibian Dollars to meet other 
non-US Dollar industry costs and ongoing corporate and overhead commitments. 
At the period end, the Group had cash balances of US$128.9 million (28 February 2011: US$9.2 million) as detailed in note 15. 
Other than the non-US Dollar cash balances described in note 15, no other financial instrument is denominated in a currency 
other than US Dollars. A 10% adverse movement in exchange rates would lead to an increase in the foreign exchange loss of 
US$2,712,500 and a 10% favourable movement in exchange rates would lead to a corresponding reduction; the effect on net 
assets would be the same as the effect on profits (28 February 2011: US$29,440).
Capital
The Company considers its capital to comprise its ordinary share capital, share premium and retained deficit as well as the 
share based payments reserve and the contributed capital reserve.
In managing its capital, the Group’s primary objective is to maintain a sufficient funding base to enable the Group to meet 
its working capital and strategic investment needs. The Group has met its work programme commitments and with the 
US$140 million fundraising completed during the period and the US$47 million fundraising completed post period end, 
the Group currently holds sufficient capital to meet its ongoing needs for at least the next 12 months.  
Liquidity risk
The Group’s practice is to regularly review cash needs and to place excess funds on fixed-term deposits for periods not exceeding 
six months with institutions that are rated no lower than A by Standard and Poors. This process enables the Group to optimise 
the yield on its cash resources whilst ensuring that it always has sufficient liquidity to meet payables and other working capital 
requirements when these become due.
The Group has sufficient funds to continue operations for the forthcoming year and has no perceived liquidity risk. 
Credit risk
The Group’s policy is to perform appropriate due diligence on any party with whom it intends to enter into a contractual 
arrangement. Where this involves credit risk, the Company will put in place measures that it has assessed as prudent to mitigate 
the risk of default by the other party. This would consist of instruments such as bank guarantees and letters of credit or 
charges over assets. 
A Group company currently acts as operator in a joint venture relationship on one of the Group’s licences and therefore from 
time to time is owed money from its joint venture partner. The joint venture partner, which has a 10% interest in the licence, 
is one of the world’s largest and most financially robust seismic and geoscience companies. As such the Group has not put 
in place any particular credit risk measures in this instance as the Directors view the risk of default on any payments due from 
the joint venture partner as being very low.  Overview Company Overview Business Review
39 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Corporate Governance Financial Statements
21. Share based payments
Share option scheme
During the period, the Company operated the Chariot Oil & Gas Share Option Plan (Share Option Scheme). The Company 
recognised total expenses (all of which related to equity settled share based payment transactions) under the plan of:
31 December 
2011
US$’000
28 February 
2011
US$’000
Share Option Scheme 755 913
The Share Option Scheme provides for an exercise price equal to the closing market price of the Company shares on the date 
of the grant. The options expire if they remain unexercised after the exercise period has lapsed. For options valued using the 
Black-Scholes model there are no market performance conditions or other vesting conditions attributed to the options. 
The following table sets out details of all outstanding options granted under the Share Option Scheme:
31 December 
2011
Number 
of options
28 February 
2011
Number 
of options
Outstanding at beginning of period/year 5,720,000 5,540,000
Granted during the period/year 250,000 700,000
Forfeited during the period/year
(1)
— (100,000)
Exercised during the period/year (500,000) (420,000)
Outstanding at the end of the period/year 5,470,000 5,720,000
Exercisable at the end of the period/year 3,720,000 1,220,000
(1)  These options relate to those that were forfeited by a Director who resigned during the year ended 28 February 2011.
The range of the exercise price of share options exercisable at the ten months to 31 December 2011 falls between US$0.38 (25p) 
and US$2.03 (129p), (28 February 2011: US$0.38 (25p) and US$1.98 (130p)).
The weighted average exercise share price at the date of exercise was US$0.82 (53p), using an exchange rate of GBP1=US$1.5541 
(28 February 2011: US$1.90 (117p), using an exchange rate of GBP1=US$1.6265). 
The estimated fair values of options that fall under IFRS 2, and the inputs used in the Black-Scholes model to calculate those 
fair values, are as follows:
Date of grant
Estimated 
fair value
Share 
price
Exercise 
price
Expected 
volatility
Expected 
life
Risk 
free rate
Expected 
dividend
28 April 2008 £0.98 £1.21 £0.385 32% Ten years 4.94% 0%
27 March 2008 £0.62 £1.21 £1.30 32% Ten years 4.94% 0%
13 November 2009 £0.17 £0.26 £0.26 80% Five years 4.3% 0%
15 January 2010 £0.19 £0.28 £0.25 80% Five years 4.3% 0%
1 June 2010 £0.89 £1.29 £1.15 80% Five years 4.3% 0%
17 August 2010 £0.71 £1.09 £1.19 80% Five years 4.3% 0%
01 September 2011 £0.87 £1.29 £1.25 80% Five years 4.3% 0%
Expected volatility was determined by calculating the annualised standard deviation of the daily changes in the share price. 
The shares issued during the year have a vesting period of two years. 
Long-term incentive scheme (“LTIP”)
The plan provides for the awarding of shares to employees. The award will lapse if an employee leaves employment. 
The shares will vest in equal instalments over a three year period.
During the period 554,100 awards were granted to employees, none of whom were Directors of any Group company 
during the period. 357,267 shares were issued to employee for no consideration as part of the LTIP scheme.
The Group recognised a charge under the plan for the ten months to 31 December 2011 of US$1,627,000 
(28 February 2011: US$670,000). 40 Chariot Oil & Gas Limited Annual Report and Accounts 2011 •
Notes forming part of the financial statements continued
for the period ended 31 December 2011
21. Share based payments continued
Long-term incentive scheme (“LTIP”) continued
The following table sets out details of all outstanding share awards under the LTIP: 
31 December 
2011
Number 
of awards
28 February 
2011
Number 
of awards
Outstanding at 1 March 2011 1,674,094 1,531,427
Granted during the period/year 554,100 426,000
Shares issued for no consideration during the period/year (357,267) (283,333)
Outstanding at the end of the period/year 1,870,927 1,674,094
Exercisable at the end of the period/year 433,333 227,142
Contribution equity
The contribution equity component of share based payments in the ten months to 31 December 2011 was US$Nil 
(28 February 2011: US$796,000).
Warrants
There were no warrants outstanding at 31 December or 28 February 2011. The following table sets out the details of the 
movement during the year ended 28 February 2011 and period ended 31 December 2011:
31 December
2011
Number 
of warrants
28 February 
2011
Number 
of warrants
Outstanding at the beginning of the year — 5,610,055
Granted during the year — —
Lapsed during the year — (2,653,281)
Exercised during the year — (2,956,774)
Outstanding at the end of the year — —
22. Contingent liabilities 
There were no outstanding contingent liabilities as at 31 December 2011 and 28 February 2011.
23. Post balance sheet events
On 2 February 2012, the Group received full approval from the Ministry of Mines and Energy in Namibia for its farm-out 
agreement with BP in Block 2714A, which was announced on 8 August 2011. As part of the farm-out agreement, BP has 
committed to cover a proportion of Chariot’s share of the cost of drilling the first exploration well in this block as well as to 
reimburse Chariot for its past costs incurred. A significant majority of this past cost reimbursement has now been received. 
The commercial effect of this transaction has been fully reflected in the financial statements as at 31 December 2011 in line with 
the Group’s accounting policies for i) significant accounting estimates and judgements and ii) treatment of farm-in transactions. 
On 6 March 2012, the Group announced that it had signed a drilling rig contract with A.P. Moller Maersk A/S (“Maersk”) for a 
one well drilling slot using the Maersk Deliverer ultra deepwater semi-submersible rig offshore Namibia. It is currently anticipated 
that the rig will arrive on location at the end of March 2012 and that the drilling of the Tapir South prospect will commence 
shortly thereafter.
On 20 March 2012, the Group announced that it was raising a further US$48.7 million (before fees) of cash, by way of a placing 
of 18,110,400 ordinary shares of £0.01 at a price of £1.70 per share. This placing does not require shareholder approval at an 
Extraordinary General Meeting as it falls within the Directors’ authorisation limit approved by shareholders at the Company’s 
Annual General Meeting on 20 July 2011. Overview Company Overview Business Review Corporate Governance Financial Statements
Registered Office
PO Box 282
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3RH
Channel Islands
Registration Number
47532
Nominated Adviser and Joint Broker
RBC Europe Limited
Thames Court
One Queenhithe
London
EC4V 4DE
United Kingdom
Joint Broker
UBS Investment Bank
1 Finsbury Avenue
London
EC2M 2PP
United Kingdom
Bankers
Barclays Bank Plc.
PO Box 41
Le Marchant House 
Le Truchot
St Peter Port
Guernsey
GY1 3BE
Channel Islands
Auditors
BDO LLP
55 Baker Street
London
W1U 7EU
United Kingdom
Financial Public Relations Adviser
FTI Consulting
Holborn Gate
26 Southampton Buildings
London
WC2A 1PB
United Kingdom
Legal Advisers 
As to British Law
Memery Crystal LLP
44 Southampton Buildings
London
WC2A 1AP
United Kingdom
As to Namibian Law
Lorentz Angula Inc.
Windhoek 3rd floor
LA Chambers
Ausspann Plaza
Windhoek
Namibia
As to Guernsey Law
Babbe
PO Box 69
18-20 Smith St.
St Peter Port
Guernsey
GY1 3EL
Channel Islands
Company Secretary
International Administration Group (Guernsey) Limited
PO Box 282
Regency Court
Glategny Esplanade
St Peter Port
Guernsey 
GY1 3RH
Channel Islands
Registrars and Receiving Agents
Capita Registrars 
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
United Kingdom
Advisers Chariot Oil & Gas Limited
Registered Office:
PO Box 282
Regency Court
Glategny Esplanade
St Peter Port
Guernsey
GY1 3RH
Channel Islands
www.chariotoilandgas.com