Chariot Oil chiefs take the pain

Chariot Oil has had a decent few weeks and the shares are trading at a five-month high. To celebrate, all board members have had their pay halved and the finance director has left the company.

"This board decision to significantly reduce its overall remuneration package is directly linked to our continued focus on capital discipline whilst ensuring that we maintain the capacity to execute the business plan," explains chief executive Larry Bottomley."We retain our exploration expertise and operating capability and we remain committed to delivering on our strategy and preserving company funds."

It's fully-funded for all current work commitments, but the move will save about $1.5 million over the course of the next year, protecting both Chariot's cash position and maintaining financial flexibility.

"Current market conditions are challenging and this agreement reflects the board's consideration of the best interests for the company and its stakeholders as well as taking a long term view of the business," says the firm.

Finance boss Mark Reid is off to pastures new. He'll be replaced by current group financial controller Julian Maurice-Williams. "[That] is a shame as he was one of the 'new brooms' that came in post previous management debacles," writes industry expert Malcolm Graham-Wood.

"I remain of the view that Chariot, which is fully funded, has few commitments and therefore is comparatively well placed [and] is as good as any to take advantage of the significant upside in its portfolio in the future."

House broker finnCap remains upbeat and sticks with its price target of 46p.

Last week, Chariot was granted a one-year extension on the current exploration phase of the C-19 licence in which the company is operator with a 55% interest. Cairn has 35% Cairn and SMHPM 10%. It's also updated its Competent Person's Report (CPR) using 2014 seismic data analysis which has identified four prospects in the acreage.

The single target prospects PA-1 and MA-1 have gross mean prospective resources of 431 and 588 million barrels of oil (mmbbl), respectively. The multi stacked KT-1 and BFT-1 prospects have gross mean prospective resources of up to 434mmbbl.

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