The prospect is drill ready - all long lead items have been delivered, all service contracts signed, the support base secured and the drill permit granted.

But Chariot said that the rig anticipated to be available for the fourth quarter spud has been contracted by another operator for a longer programme.

The company says it is in active negotiations regarding a number of other available rigs and expects to spud the Tapir South exploration well in the second quarter of 2012.

CEO Paul Welch said: "Whilst it is disappointing not to have secured a rig to drill Tapir South this year, we continue to negotiate other options at commercially attractive rates.

"The rig market is tight but also very dynamic and whilst we are looking to drill as soon as possible next year, we need to manage this to optimise our drilling programme going forward."

At 9:43am: (LON:CHAR) share price was -20.62p at 105.88p

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