Chariot Ltd. (OIGLF)

[douginil]

See my previous post on Chariot ... You might be surprised with some DD

[douginil]

See my previous post.. You might be surprised with some DD

[buccaneer1961]

do they have any producing properties? thinking if getting back in,was in it a long time ago....whens the next drilling oppty or any cash income opptys?

[douginil]

Chariot Oil & Gas Limited

July 1, 2021

[[ Thanks to Malcy's Blog ]]

Chariot has announced the appointment of David Brecknock to the role of Drilling Manager, with responsibility for the Company’s planned Anchois gas appraisal well within the Lixus licence, offshore Morocco. The objectives of the drilling campaign are to further evaluate the resource volumes of the Anchois gas field to unlock the initial development, to provide a future producer well location and potentially drill the additional prospective sands with the aim of establishing a larger resource base for longer term growth.

Adonis Pouroulis, Acting CEO of Chariot, commented:

“I am delighted to welcome David back to the Company. He played a pivotal role in Chariot’s previous drilling campaign in Namibia which was operated safely, on time and under budget, and we expect him to play a similarly important part in our exciting Anchois gas appraisal well. We look forward to keeping the market up to speed over the coming months as we get closer to drilling.”

I wouldn’t normally comment on such an appointment but this is important on a couple of fronts, firstly that the hiring of a drilling Manager brings forward activity at Anchois but also that DB is a former Chariot man and should fit in swiftly and without need to get the corporate picture. Expect the new speedy rate of activity at the company to be maintained.

Read at:
https://www.malcysblog.com/2021/07/oil-price-scirocco-chariot-president-block-and-finally/

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy's blog ]]

June 1, 2021

Chariot, the Africa focused transitional energy group, is pleased to announce that further to the announcement on 23 March 2021 in respect of the acquisition of the business of Africa Energy Management Platform all conditions in the share purchase agreements and other related transactions agreements have now been satisfied and completion of the transaction is expected imminently.

Initial consideration payable on completion of the share purchase agreement is US$1.16 million in Chariot Ordinary Shares based on the 30-day VWAP prior to the signing of the SPAs (representing 9,196,926 shares) and US$0.09 million in cash.

Adonis Pouroulis, Acting CEO of Chariot, commented:

“I am delighted that our acquisition of AEMP will complete imminently. The launch of Chariot Transitional Power places the Company in a unique position in the market. This acquisition will see us work with our partner, Total Eren, to provide clean, sustainable, and more competitive energy to operational mines in Africa. A market of significant scale, that is largely untapped, where Chariot’s management has a deep understanding and high-level commercial networks.

The focus on transitional energy can also be seen at our Anchois gas discovery, where Chariot has the potential to provide the Kingdom of Morocco with natural gas, enabling the country to achieve its target of decarbonising its economy and reducing its dependence on imported fuels.

Following the completion of the fundraise, which is subject to shareholder approval at the forthcoming General Meeting, Chariot will occupy an exciting inflexion point in its history. The Board and management team continue to be fully aligned with our investors and we remain focused on delivering value for all our stakeholders. I look forward to keeping the market updated on the Company’s progress throughout the rest of 2021.“

Read at:
https://www.malcysblog.com/2021/06/oil-price-savannah-sound-chariot-petrotal-longboat-igas/

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy's blog ]]

May 24, 2021

Chariot has announced that further to the Company’s announcement released at 4.56 p.m. on 24 May 2021, the Bookbuild has closed and the Company has conditionally raised gross proceeds of US$16.5 million (£11.7 million) through the successful Placing of and Subscription for 212,553,929 of New Ordinary Shares, at the Issue Price of 5.5 pence per Ordinary Share.

In addition to the Placing and Subscription, and as set out in the Launch Announcement, the Company proposes to raise up to a further US$5 million (£3.5 million) by the issue of New Ordinary Shares ‘pursuant to an Open Offer to Qualifying Shareholders at the Issue Price on the basis of 1 Open Offer Share for every 6 Existing Ordinary Shares held on the Record Date’. Qualifying Shareholders subscribing for their full entitlement under the Open Offer may also request additional Open Offer Shares through the Excess Application Facility. Details of the Open Offer and the action to be taken by Qualifying Shareholders to subscribe for Ordinary Shares under the Open Offer will be set out in the Circular, which will be sent to Shareholders on 28 May 2021.

Magna Capital LDA (of which Adonis Pouroulis is a substantial shareholder) has conditionally agreed to underwrite the Fundraising, ensuring that the total fundraising will equate to approximately US$23 million (£16.3 million) before expenses, by subscribing, in two tranches on or before 31 January and 28 February 2022, for new Ordinary Shares at the Issue Price. Mr. Pouroulis has personally sub-underwritten the Underwriting Commitment. The Underwriting Commitment is transferable at Magna’s sole discretion and shall reduce in equal proportion to any funds received separately by the Company from the Open Offer, a farm-in or a fundraise.

The gross proceeds includes US$3.4 million (£2.4 million) conditionally raised from certain of the Company’s Directors, as part of the Subscription. The Placing Shares and Subscription Shares represent in aggregate 54.7 per cent. of the Company’s Existing Ordinary Shares. The Issue Price represents a discount of approximately 29.58 per cent. to the mid-market closing price on the London Stock Exchange of 7.81 pence per Ordinary Share on 21 May 2021.

The net proceeds of the Fundraise will be used to drill an appraisal well at the Anchois Gas Development offshore Morocco to confirm the discovery, progress work programme on the acreage surrounding the Anchois gas discovery for future development, to integrate transitional power team and existing project, fund near-term power project and for general working capital purposes.

Adonis Pouroulis, Acting CEO of Chariot, commented:

“We are excited to announce the completion of today’s Placing and Subscription, subject to shareholder approval at the forthcoming General Meeting. This successful fundraise marks a key turning point in the evolution of the Company, as we seek to build a transitional energy business in Africa, that we believe will deliver value for all stakeholders. With the net proceeds, Chariot intends to accelerate the timeline of the Anchois Gas Development coming online, with a near-term appraisal well now in sight and the launch of Chariot’s Transitional Power division, following the acquisition of AEMP earlier in the year in partnership with Total Eren.

This fundraise will turbocharge our growth ambitions in both our transitional gas and transitional power businesses which are highly scalable in terms of both the prospective gas resources offered in Anchois and surrounding area, and in the pipeline of projects to provide clean power to mining and industrial clients in Africa.

We encourage and welcome existing shareholders to join us on this exciting journey through the Open Offer and look forward to providing further updates on our progress in due course.”

This news today is most important and I’m sure will cement Chariot as a key player in Africa for both gas and renewable energy. Indeed I would suggest that the moves that have been made by Adonis Pouroulis since he took over have made Chariot a unique story in Africa and with potentially substantial upside.

The moves that have been made since then have the effect of considerably de-risking Chariot, at Anchois, where significant work has been done looks a lot more robust now that this raise confirms a well will be drilled this year. The cost of drilling this well seem to be lower than the expectations next year and that this year provides the company with a window of cheaper costs.

Apart from Anchois, the moves that they have made with regard to the partnership with Total Eren look to me to be able to be bracketed in that rare ‘company maker’ situation. The opportunities in the African mining industry and the use of renewables will be found by the management and financed by access to Total’s inexpensive debt makes this, exclusive deal seem copper bottomed to me. Talk of 500 MW or even a GW are not impossible and with 1.2bn people on the continent rising to 2bn mean that sustainable, green ESG compliant energy will be the place to be.

This financing is clearly significant for Chariot and whilst the discount has been commented on I feel that the ability to get some institutional investors on board is a justifiable price worth paying. Indeed the fact that this management has delivered a lot this year, and at this stage the CEO is putting a substantial amount to take part in the raise via direct investment, as well as his underwriting of what looks like an attractive offer which has been structured so that existing investors can participate at the same price looks eminently backable to me.

The deals this year, combined with the opening up of Chariot into being a major player in gas and renewable power for Africa’s huge mining industry and operating in at least 17 countries with an existing presence assured, plus the backing of the exclusivity of the partnership with Total looks like a no-brainer to me. A unique story, without doubt I would say that weans Morocco off coal for power and supplies a huge basic industry with renewable power.

Read at:
https://www.malcysblog.com/2021/05/oil-price-chariot-ujo-reabold-serica-hurricane-touchstone-and-finally/

[futrcash]

Outstanding News!

Thanks for keeping the board updated

futr

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy's Blog ]]

March 23, 2021

Chariot has announced the acquisition of a renewable and hybrid power developer focused on the mining sector in Africa by targeting a giant untapped market with Strategic Partner Total Eren, a Global Independent Power Producer (“IPP”) from Renewable Energy Sources.

The company has announced that it has signed share purchase agreements for the acquisition of the business of Africa Energy Management Platform (“AEMP”) for consideration of up to $2 million payable primarily in Chariot Ordinary Shares, representing up to c.4% of Chariot’s enlarged share capital.

AEMP is a renewable and hybrid energy project developer, with an ongoing strategic partnership with Total Eren, a leading global player in renewable energy, predominantly in solar and wind. Total S.A., the French multinational energy company, has a shareholding of about 30% (directly and indirectly) in Total Eren. AEMP and Total Eren (the “Partners”) are looking to provide clean, sustainable, and more competitive energy to operational mines in Africa, which represents a giant, largely untapped market in which Chariot’s management has numerous high-level contacts.

AEMP comes with a pipeline of 500MW of African Mining Power Projects and the Partners are in discussions with African mine operators with an aggregate requirement for 500MW of power for whom the Partners could provide viable energy solutions.

Chariot’s management is also looking to leverage its other significant business interests in multiple mining operations across Africa to rapidly grow the pipeline. The African mining power market is estimated to be around the same size as half of the entire UK power market.

Through its Strategic Partnership with Total Eren, AEMP has a right to invest in up to 15% project equity at cost in projects developed by the Partners. This provides ‘multiple value accretive opportunities for re-investment of anticipated material cashflows provided by Chariot’s Transitional Gas Project, the Anchois Development in Morocco’. AEMP currently recovers its overhead costs as part of the partnership providing an immediate post-acquisition revenue stream to finance ongoing costs.

AEMP has an experienced team with a proven track record of delivery, with the first project in operation, the largest hybrid solar plant in Africa, at the Essakane gold mine in Burkina Faso, successfully completed and currently generating returns providing proof of concept.

Under the terms of the deal Chariot will acquire 10% project equity, alongside with Total Eren having 90%, in the operational Essakane power project with positive cashflows pursuant to the SPAs. In addition, the whole of the highly experienced AEMP team are to join Chariot, including founders Benoit Garrivier and Laurent Coche.

Fabienne Demol, Executive Vice-President & Global Head of Business Development at Total Eren, commented:

“Total Eren warmly welcomes Chariot into this strategic partnership. We believe the combination of AEMP’s experienced team with Chariot’s wide reach to the African mining industry will bring further value accretive opportunities to our collaboration. Together, we are determined to address mining companies’ energy needs and provide them with clean and competitive renewable energy solutions, even in remote areas.”

Benoit Garrivier, Co-Founder of AEMP, commented:

“I am very excited about joining the Chariot family. Teaming up with Chariot’s highly experienced management will allow us to take our partnership with Total Eren to the next level. Building on our award-winning Essakane solar project, we look forward to growing our pipeline of projects to transform the energy market for mining. This is a fantastic opportunity to create an innovative transitional energy group focused on Africa and support our clients in their move towards green energy and reduction of their carbon footprint.”

Adonis Pouroulis, Acting CEO of Chariot, commented:

“I am delighted to announce the acquisition of AEMP. We believe this move will provide Chariot with numerous further valuable, exciting and scalable projects that complement and build on our value accretive Transitional Gas project in Morocco. The acquisition also plays to Chariot’s and its managements’ significant experience and other business interests within the mining sector in Africa. We are already well advanced in adding to the project pipeline and we look to forward to announcing these when appropriate. This is clearly a 1+1=3 type transaction for all parties.

We welcome Benoit, Laurent, and their team into the Chariot family, and we thank Total Eren for their strong support of this transaction. The strategic partnership with Total Eren is a highly valuable relationship, that we will look to strengthen and grow over the coming years.

The last nine months has been a busy and transformational period for Chariot under its new management team and over the coming period we will continue to look for other energy transition ventures which will further complement and build upon the high value projects we are currently looking to fast-track.”

Chariot has a number of times suggested that there were a number of game-changing deals on the go and this certainly ticks that particular box. As a move away from the old elephant hunting days, drilling for oil offshore West Africa, this couldnt be more different as it takes on the move to cleaner, greener more sustainable energy. With a rapidly increasing African population, doubling to some 2bn in 25 years, the demand for renewables is expected to grow out of all proportion.

So this deal that gives both companies and countries a chance to deploy in renewables is crucial and with the involvement of Total who add a major perspective and will be a key part of the relationship with the Pella stable in 17 African countries provided by Adonis Pouroulis. It is also suggested that through the JV Chariot will be able to lever off the Total balance sheet giving even more potential.

Of course the Lixus tie-in will provide the already decent size Anchois discovery with a market place, with its de-risked project NPV10 of some $500m + it also ticks the scalability box where a potential 3 TCF are anticipated

There are a number of sundry positives, for investors who rate the above industry average of ESG compliance the acquisition meets Chariot’s key ESG value of Positive Impact on the environment, countries, and communities where it operates. It marks the change towards gas on the continent and obviously with a large number of energy hungry mining projects should have medium and long term opportunities.

Post completion of the acquisition, the enlarged group plans to formally change its name from Chariot Oil & Gas Limited to Chariot Limited under the tagline of “Chariot Transitional Energy”, very much a cleaner, greener and more sustainable company.

The shares have not taken advantage of what is without doubt a game-changing deal, investors should watch the interview with Adonis and see how the various moving parts in this deal will combine to make the current market cap look positively tiny by what it should be. A key member of the bucket list Chariot is set fair with this deal.

Read at:
https://www.malcysblog.com/2021/03/oil-price-chariot-and-finally/

[douginil]

Thanks for posting the link

[futrcash]

https://www.chariotoilandgas.com/wp-content/uploads/2021/01/Corporate-Presentation_January-2021_Chariot-Oil-Gas-Limited.pdf

futr

[douginil]

Chariot Oil & Gas

March 2, 2021

[[ Thanks to Malcy's Blog ]]

Yet more good news from Chariot this morning as they announce that along with partner ONHYM they have signed an MOU with the Moroccan Ministry of Industry to support the Anchois Gas Development. The MOU states that the Ministry will ‘support the Development to enhance job creation, regional integration through the development of strategic infrastructure and the promotion of clean and competitive energy for consumption by the Moroccan industrial sector’.

This reflects the Ministry’s active promotion of the use of natural gas extracted in Morocco to help the Kingdom of Morocco meet its key national strategy of industrial development, the decarbonisation of its economy, diversification of the energy mix and the reduction of its dependence on imported fuels. It should be noted that energy demand has doubled in-country in the last 20 years and the same is predicted in the next two decades. The Parties will forthwith progress discussions with the view to signing further agreements with the Ministry or other Moroccan authorities to implement the Anchois Gas Development.

Read at:
https://www.malcysblog.com/2021/03/oil-price-chariot-hurricane-and-finally/

[douginil]

Chariot Oil & Gas

[[ Thanks to Oilman Jim ]]

February 28, 2021

Chariot Oil & Gas (CHAR) announced it has signed a collaboration agreement with Subsea Integration Alliance to work together to enable the front-end design, engineering, procurement, construction, installation and operation of the Anchois gas development project in Morocco. Key now is whether they can actually obtain development debt finance as previously announced. Estimated capex required to bring the development online is anticipated to be in the region of $300 to $500 million.

Read at:
https://oilmanjim.blogspot.com

[futrcash]

I think this one will surprise hugely!

futr

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy's Blog ]]

October 28, 2020

The company says that it has received a non-binding Expression of Interest (EOI) letter from Africa Finance Corp (AFC) a pan-African Multilateral Development Financial Institution, for the provision of development debt finance for the Anchois Gas Discovery, located within the Lixus Offshore Licence, Morocco (“Lixus”), and the development of future discoveries from the wider prospect portfolio of the Licence.

In addition, Chariot has received a non-binding EOI for the provision of Reserves Base Lending for the development of the Anchois Gas Discovery with a Multinational Investment Bank. Chariot say that both EOI’s take into account estimated capex costs of bringing the development online a number believed to be c.$300-500m.

The Lixus licence is identified as being ‘an important strategic asset, with strong Environmental, Social and Governance (ESG) credentials, that has the potential to help Morocco transition to a low carbon economy, as it seeks to satisfy an anticipated doubling in domestic demand for energy over the next 20 years’.

Read more at:
https://www.malcysblog.com/2020/10/oil-price-chariot-oil-gas-and-finally/

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy' s blog ]]

Sep 29, 2020

Chariot has unveiled interims today, the Group remains debt free and had a cash balance of US$5.8 million at 30 June 2020 (US$9.6 million at 31 December 2019), with no remaining work commitments across the portfolio. Whilst the Company retains the Central Blocks, Namibia and BAR-M Blocks, Brazil and will continue to host data-rooms for potential partnering, a non-cash impairment charges totalling US$66.7 million have been recorded against the full book value of Namibia and Brazil.

In the accompanying interview CFO Julian Maurice-Williams notes strongly that this is a non-cash impairment. Other administrative expenses of $1.7 million (1.5 million) are slightly higher than the prior period reflecting one-time restructuring costs incurred in the period which are importantly, expected to decrease annual cash overhead from c.US$4.5 million to c.US$2.5 million which is impressive.

A new Executive Team has been appointed with ‘new values, mission and energy to create growth and deliver positive change through investment in projects that are driving the energy revolution’. I have interviewed the CFO and Technical Directors and the link is below. In the interview, and in the work I did in preparation it is clear that the acting CEO has made significant changes at senior level and it is they who will take Anchois forward, Lixus is a most exciting gas project with excellent quality reservoirs of high quality gas.

The partnering process, clearly affected to some extent by the virus, has clearly shown that a great number of interested parties across many different disciplines and that bodes very well for ongoing funding and gas marketing. Much work has been going on with the Pre-FEED study commissioned and ‘optimised development concept finalised with a major engineering consultancy with initial reference base case economics highly encouraging.

The upgrade of audited total remaining recoverable resource to in excess of 1 Tcf for Anchois, representing a 148% increase (comprising 361 Bcf 2C contingent resources and 690 Bcf 2U prospective resources), announced recently makes Anchois a key part of the company’s immediate future and new ventures are being evaluated, defined by Chariot’s values, strengths and the scalability of the opportunities.

Adonis Pouroulis, Acting CEO of Chariot commented:

“This is an exciting phase in the evolution of the Company as the new team takes action to drive the Lixus opportunity forward and bring in value-accretive new ventures that play into the energy transition theme. With each day that passes more potential in the Lixus licence is uncovered, delineating a major gas resource with strong ESG credentials and national significance for Morocco.

Africa is the one continent where population growth and demand for power are rising rapidly and are projected to continue to rise throughout this century. With this, Chariot is ideally placed with its Moroccan gas development foothold to reach out and invest into other alternative projects that embody our core values, demonstrate our vision and create value for shareholders as we seek to make the Company more relevant to future energy needs.

The work the team has undertaken to advance the Anchois project during the period, in what is shaping up to be a multi-Tcf prospective licence area, has served to enhance its commerciality and bring a highly scalable, fundable development opportunity onto the radar of institutional financing. We look forward to further project endorsements and hope to announce more progress in the coming months as the gap narrows between the market’s perception of the Company and what management feel is currently a vastly undervalued clean energy investment proposition.”

So, Chariot has been working hard on Lixus which looks a better prospect every time I hear from the company. Without the virus we would be further ahead but it looks to be a really prospective asset and the Moroccan gas market remains potentially one of the best for those with gas assets.


Read at:
https://www.malcysblog.com/2020/09/jersey-oil-gas-chariot-oil-gas/

[douginil]

Chariot Oil & Gas

[[ Thanks to Oilman Jim ]]

Posted: 13 Sep 2020 02:33 AM PDT

Chariot Oil & Gas (CHAR) released what it said was a significant resource upgrade on Anchois, Morocco The audited total remaining recoverable resource has increased by 148% to in excess of 1 Tcf for Anchois, comprising 361 Bcf 2C contingent resources and 690 2U prospective resources. The more important point is can they find a farm-out partner and drill it.

Read at:
https://oilmanjim.blogspot.com/2020/09/88e-iog-delt-rbd-tmk-ujo-boil-char-sou.html

[douginil]

Chariot Oil & Gas-This gets better and better…

[[ Thanks to Malcy's blog ]]

Sept 7, 20

Chariot Oil & Gas-This gets better and better…

An excellent day for Chariot who have announced a significant resource upgrade on Anchois, Morocco following reprocessing of 3D seismic data across the Lixus licence. This has resulted in ‘significant improvements in both image quality and depth control and has had a positive impact on the understanding of the distribution and extent of the Anchois gas sands’.

Netherland Sewell has updated its independent assessment of a 50km² area covering the Anchois gas discovery on the Lixus licence, which has led to a significant resource upgrade for the proposed Anchois Gas Field Development. This amounts to an upgrade of audited total remaining recoverable resource to in excess of 1 Tcf for Anchois, representing a 148% increase (comprising 361 Bcf 2C contingent resources and 690 2U prospective resources).

In addition, this creates the ability for the low-risk prospective targets (C, M and O sands) to be drilled at low cost as part of any appraisal or development drilling activity on the Anchois Discovery (A and B sands); the development of which brings the potential for material free cash flow, another significant plus for the project.

It also goes without saying that the Chariot team are continuing to ‘identify, evaluate and quantify additional material gas prospects in the Lixus licence based on the reprocessed data’ which look very promising.

Adonis Pouroulis, Acting CEO, commented:

“The recent work on the Lixus Licence confirms the materiality of the Anchois Gas Field Development project.

We continue to hold the view that this asset has the capacity to be a value accretive and long-term project of national significance to Morocco. The Anchois development has the potential to supply material gas volumes into existing markets in the near-term, and the exploration prospectivity of the Lixus licence is of a scale sufficient to provide the Moroccan power sector with a clean, reliable, low cost and sustainable supply of gas for decades to come. We continue to make progress in unlocking the Anchois development and generating near term cash flows and we look forward to keeping our shareholders updated on developments on Lixus and, as previously announced, the other opportunities being reviewed over the coming months.”

Lixus, particularly Anchois, is continuing to move forward with pace and impactful upgrades, I am looking forward to seeing this development being brought forward to the next stage as it will add significant value to Chariot. It is worth noting that the more that the company add to resource numbers the more likely they are to find a big fish to partner with in the Anchois development…


Read at:
https://www.malcysblog.com/2020/09/oil-price-chariot-jadestone-i3-pantheon-deltic-and-finally/

[douginil]

Chariot Oil & Gas (CHAR) announced that Larry Bottomley, CEO, also has “stepped down”

[[ Thanks to Oilman Jim ]]

July 27, 2020

Chariot Oil & Gas (CHAR) announced that Larry Bottomley, CEO, also has “stepped down” with immediate effect. In light of the current lack of market appetite for exploration activity, Chariot plans to evaluate other opportunities available to it. Their previously announced 2019 final results highlighted that exploration in frontier regions has fallen out of favour and there now is a need for nearby / adjacent discoveries to unlock basin potential.

[douginil]

Chariot Oil & Gas

[[ Thanks to Malcy's Blog ]]

Chariot has announced that CEO Larry Bottomley has stepped down with immediate effect and that Adonis Pouroulis, NED and Founder of the company will take over as Acting CEO. CFO Julian Maurice-Williams has joined the board as has Exploration Manager Duncan Wallace as new Technical Director.

Chariot remain on track to extract the maximum from the Anchois discovery at the Lixus licence in Morocco and ‘believes that the asset has the potential to deliver near term cash flows to the business’, has ESG credentials and remains an ‘attractive asset for potential farm-in suitors’.

Chariot has also said that it plans to evaluate other opportunities available to it and continues to benefit from a strong financial position, with a cash balance of US$9.6 million as at 31 December 2019 with no remaining work commitments. Acquisitions would have to be accretive to shareholders and it is clear talking to the company today that value added deals are being looked at already.

Read at:
https://www.malcysblog.com/2020/07/oil-price-chariot-deltic-cairn-and-finally/

[douginil]

Chariot Oil & Gas 2019 finals today

[[ Thanks to Malcys blog of 06/17/2020 ]]

2019 finals today but as with as with all these companies it is the focus on the here and now that investors are most interested in. Chariot has sensibly updated its corporate strategy ‘to fit with the evolving market dynamics’ ie less frontier exploration until say a discovery is made in adjacent blocks.

All upstream projects need to demonstrate ESG credentials, ever important in this day and age and CHAR are taking this very seriously in tandem with tight capital discipline. Financially the company remains very strong with a sound balance sheet and no debt.

So, Lixus with Anchois and its increasingly exciting satellites is ‘a material, huge value gas project with a route to free cash flow and offers potential for a low risk near-term development opportunity and material, strategic entry into a fast growing Moroccan energy market and access to the Spanish and Portuguese gas markets.

Chariot are targeting production of 53 MMscf/d and at $8/mcf which gives revenue of c.$150m p.a. and capex paid back in 2-3 years. Technicals are underway, the feasibility study is done, it will be a subsea-to-shore development with two wells tied back to a subsea manifold, from which a flowline and control umbilical connect to an onshore CPF and this is all current, off-the-shelf technology.

The EIA is approved and the pre-FEED work is progressing and maybe most importantly the company is ‘in discussion with a broad spectrum of potential farm-in partners, multi-lateral lending agencies, debt finance providers, reserved based lenders, midstream service providers and downstream off-takers’.

Chariot has performed well in recent weeks but the market will be pleased to see that the management are finding it possible to make strides on Lixus across the board and with its strong finances and absence of debt is poised to achieve significant growth in coming months.

Read at:
https://www.malcysblog.com/2020/06/oil-price-chariot-wentworth-and-finally/

[douginil]

Chariot Oil & Gas (CHAR) issued a strategic update

[[ Thanks to OIlman Jim ]]

Chariot Oil & Gas (CHAR) issued a strategic update. They now intend to focus on monetising near term potential of the Lixus licence and maximising value for investors by developing a Moroccan gas business. Their 2019 year-end unaudited cash position was $9.6 million, with no debt and no remaining work programme commitments. Market capitalisation is £7 million.

[douginil]

A strategic updat and response to market conditions from Chariot Oil & Gas

[[ Thanks to Malcys Blog ]]

April 9, 2020

A strategic update and response to market conditions from Chariot this morning who say that their corporate strategy is to focus on monetising the potential of the Lixus licence and maximise value for investors by developing a Moroccan gas business. All this is to be delivered with continued focus on capital discipline whilst retaining key players, operating capabilities and a continuing reduction in annual running costs by c.45% from $4.5m to $2.5m.

Part of this process involves the board seeing a cash reduction in fees and salaries by 50% and being replaced by shares, an important, meaningful cut to an already lean G&A figure. Chariot has cash of $9.6m in the balance sheet, no debt and no work commitments which mean that this is a realistic cut and because of the flexible nature of the company with no obligations outside of their control.

This is a response to the changing risk profile required from investors, the development of the Moroccan gas business in general and Anchois development specifically is all about capital discipline, focused risk and delivery of Lixus whilst preserving cash. Anchois has a total remaining recoverable resource of 423 Bcf and the company has performed a PSDM on legacy 3D data which has materially improved the dataset and has already highlighted additional potential within the Anchois area including identifying the additional, deeper target the ‘O’ sand. This may have best estimate (2U) prospective resources of 159 Bcf taking the total to 582 Bcf with the addition of the resources assigned to the O Sand to the NSAI 2C estimates for the discovered A & B Sands and 2U estimate for the undrilled C Sand.

All this shows that the project has the potential for near-term, substantial returns and strong partnering interest, whilst somewhat modestly delayed by COVID-19 is very much on the cards as Chariot shares the risk. The company appears to be most impressed by the breadth and width of the potential partners who appreciate the opportunity to join with a company with access to a top quality Moroccan gas business with strong ESG credentials, not to be ignored nowadays.

Finally, it must not be forgotten that Anchois has ‘additional running room’ in the Anchois satellites and additional prospects which would gain from the growing Moroccan gas market with its attractive gas pricing. To me Chariot has addressed the situation and is moving as fast as is possible to be a Moroccan gas market player whilst reducing the overall cost base of the company.


Read at:
https://www.malcysblog.com/2020/04/oil-price-chariot-igas-pantheon/

[douginil]

From Malcy's blog; scroll to Chariot

https://www.malcysblog.com/2019/06/oil-price-chariot-oil-gas/


Yesterday I had the chance to do an extended interview with Chariot Oil & Gas CFO Julian Maurice-Williams. In a wide-ranging discussion we talked about the Lixus licence acquisition and also this week’s announcement regarding the Development Feasibility Study and also the Morocco Gas Market Assessment and a lot more.

In our discussion he talked about the much bigger addressable market for potential partners and how well that process is going, Chariot have historically been very strong in this respect and it looks like this time is no different. With a strong, fiscally attractive market within Morocco and the potential to export through the Maghreb pipeline into Europe the opportunities are plenty and the Lixus licence can be developed via a single phase or staged development.

Chariot has added a genuinely high value asset and with potentially near term cash flow possible the shares look highly promising, at less than 5p and with at least 4p of cash in the balance sheet the shares are well funded and have serious upside from these levels. The link to the interview is below.


Interview (21 minutes)

https://www.malcysblog.com/2019/06/core-finance-interview-julian-maurice-williams-of-chariot-oil-and-gas/

[douginil]

2018 results today from Chariot Oil & Gas

{Thanks to Malcy's Blog ( malcysblog.com ) }

April 10, 2019

2018 results today from Chariot but information that is very much already in the market and t gives the company the chance to talk a bit more about how they are re-balancing the portfolio going forwards. As announced last week the company has recently been awarded the Lixus licence in Morocco which contains the Anchois-1 gas discovery with 307 bcf of 2C contingent resources as well as deeper potential of another 116 bcf of 2U prospective resource having been identified.

In addition there are material tie-back opportunities for low risk exploration prospects with ‘attractive’ upside of 527 bcf of 2U prospective resources in adjacent satellites and a host of potential exploration opportunities. With the local gas market to be one of the best worldwide, with excellent contract terms and high gas prices this looks to be a gem of an opportunity.

Chariot has $19.8m of cash which is equivalent of 4p per share and no debt. The new licence carries less than $1m of commitments and with the project likely to deliver strong cash flow should attract a significant number of potential partners wishing to join up with Chariot. The demand for these ‘strategic alliances’ in a country with strong demand for gas and one of the best fiscal policies worldwide makes this re-balancing of the portfolio by Chariot very wise. The company will still be able to pursue the exciting high-impact exploration portfolio whilst at the same time tempering some of the beta with this project, this looks like a plan that shareholders will appreciate.


https://www.malcysblog.com/2019/04/oil-price-chariot-predator-and-finally/

[douginil]

Announces that it has been awarded the Lixus licence offshore Morocco.


Malcys Blog 3-April-2019

https://www.malcysblog.com/2019/04/oil-price-chariot-jog-soco-iog-and-finally/


Chariot Oil & Gas

A most interesting move by Chariot this morning as it announces that it has been awarded the Lixus licence offshore Morocco. Lixus brings a gas discovery, Anchois-1 with 307 bcf of contingent resources in gas sand A and gas sand B whilst gas sand C in the deeper potential adds another 116 bcf making 423 bcf in the vicinity. Anchois and its other satellites are an amplitude-supported discovery and prospect inventory with remaining recoverable resources of >900 Bcf whilst the eastern area prospects add around 800 bcf.

So, phase 1 with four production wells gives production from the original 307 bcf at 70 mmscf/d over ten years and adding the extra 116 bcf to make 423 bcf would take production to 90 mmscf/d. Phase 2 adds another 674 bcf and 90 mmscf/d for twenty years. This makes this project highly appealing and potentially very profitable.

The only commitments at this stage are a seismic campaign at a cost of <$1m which would lead to an Anchois-2 appraisal well, currently scheduled for 2H 2020. With such a high percentage of the licence, (75%) it is clear that Chariot will seek to find ‘strategic partnerships’ for funding of the longer term process but this should be a good deal easier than in previous high risk wells. With a very strong gas market in Morocco with high prices and a supportive Government to cut down on fossil fuel imports, the potential pool of investors is substantial and brings in many new institutions.

With both these thoughts in mind, Chariot have Netherland Sewell completing an up-to-date CPR and will have a gas market analysis within 3 months. Overall this looks good to me, Lixus brings what should be a marketable discovery with lots of potential upside, more importantly it changes Chariot’s risk profile which needed doing. The company will continue with other parts of the portfolio but this brings a bit lower risk and more balance, maybe the right thing to be doing right now.

[douginil]

douginil Thursday, 11/15/18 03:00:22 PM
Re: None 0
Post # of 5792


Tullow Oil plc (Tullow) issues the following Trading Update for the period 26 July to 15 November 2018.

Published on: 15 November 2018

Trading Update summary

- All fields producing in line with expectations, full year oil production guidance narrowed to 87-91,000 bopd
- Full year free cash flow forecast to be c.$700 million, including Uganda farm-down proceeds of $200m, with net debt and gearing reducing from $3.5 billion and 2.6x to c.$2.8 billion and c.1.8x respectively by year-end
- Four new infill wells in Ghana expected to be on line by early 2019, increasing gross production to around 180,000 bopd
- Uganda farm-down expected to close around year-end 2018; development work on track with FID targeted for first half 2019

- Kenya Foundation Stage development to include the Ngamia, Amosing and Twiga fields; targeting FID in late 2019
- Cormorant-1 wildcat well drilled in Namibia for net cost below $5 million; no significant reservoir quality rocks encountered

- Multiple attractive prospects identified in Guyana acreage with drilling programme expected to commence in mid-2019

Read More at
https://www.tullowoil.com/media/press-releases/november-trading-update-2018

[DrillaHill]

Unfortunately another dry well offshore Namibia, reached TD much quicker than expected. Potential for significant cost savings considering previous estimates were based on a 40 day operation. Topped up @ 3p in London and am looking forward to deals and wells offshore Morocco & Brazil. GLA

[DrillaHill]

Commencement of Drilling of Prospect S Well, Namibia



http://www.chariotoilandgas.com/wp-content/uploads/2018/10/Commencement-of-Drilling_Chariot-Oil-Gas-Limited.pdf

Prospect S offshore Namibia
29% chance of success
300mmbbls net to Chariot
Billion Barrel upside potential
367 million total shares
Current shareprice 8p (MC: GBP 30 million)

Super excited!
A valuation of US$4/bbl would be worth 248p/sh (+3,000%)
What's your SP estimate in the success case? (LSE:CHAR)

Poll:

#CHAR Historic low drill costs, however Brent Crude Oil rocketing towards previous highs. If prospect $ is a success what's your SP estimate in the success case? https://t.co/0Ii34XOYQz

📈 Prospect $ 459mmbbls
📈 Chariot 65%
📈 Spud Oct 2018 🌞
📈 367m shares (USD/GBP 0.72)

— BiG $ (@TexDrilla) September 26, 2018

GLA!

[DrillaHill]

Poseidon underway - at location in 24 hours
with spudding of the well expected shortly after.

www.proactiveinvestors.co.uk/companies/news/205961/drilling-set-to-begin-shortly-at-chariot-oil-gas-prospect-s-well-offshore-namibia-205961.html

GLA

[buccaneer1961]

I like this play potential

[DrillaHill]

Reckon they will spud next week. Cormorant had a 15% chance of success, prospect S has 29%. Chariot O&G is targeting a different prospect type & age - results of Cormorant do not impact 29% chance of success we have on prospect S which has been derisked by the discovery of light oil from nearby Wingat well. Targeting 300mmbbls net to Chariot (65%) with historic low drill costs & Brent Crude Oil rocketing towards previous highs. If prospect S is a success what's your SP estimate in the success case?

#CHAR Historic low drill costs, however Brent Crude Oil rocketing towards previous highs. If prospect $ is a success what's your SP estimate in the success case? https://t.co/0Ii34XOYQz

📈 Prospect $ 459mmbbls
📈 Chariot 65%
📈 Spud Oct 2018 🌞
📈 367m shares (USD/GBP 0.72)

— BiG $ (@TexDrilla) September 26, 2018

[buccaneer1961]

well we should spud in a couple weeks here yes? pan continental was a dryhole

[buccaneer1961]

its about a 34 day drill for pel 37

[DrillaHill]

Looks like Poseidon on the move to Cormorant

https://www.marinetraffic.com/en/ais/home/centerx:14.3/centery:-22.7/zoom:10
ATD: 2018-09-02 12:16 ETA: 2018-09-03 06:00

I reckon spud of Big "S" not before mid October, potential newsflow during Oct/Nov:

• Spud of Cormorant
• H1 2018 results
• Update on back-in option with Shell Mauritania
• Video presentation on Namibia drilling program
• Investor conference call on impact of Cormorant
• Farmout or M&A Namibia/Morocco/Brazil
• Cormorant results (different prospect type & age)
• Handing over of Poseidon drillship & anouncement of spud date
• ICE, Cape Town (4 November – 7 November)
• Africa Oil Week (5 November – 9 November)

GLA

[buccaneer1961]

its in Namibia in the bay...spuds in 6 days then goes to prospect S

https://www.marinetraffic.com/en/ais/home/centerx:14.5/centery:-22.9/zoom:7

[buccaneer1961]

https://www.sharesmagazine.co.uk/news/shares/high-hopes-for-namibia-to-be-next-big-oil-hotspot-with-new-exploration-push-about-to-begin

[DrillaHill]

2018 Small Cap Drilling offshore Namibia - Comparison

[DrillaHill]

Report: Unrisked valuation for Big “S” US$5.3/bbl (338p/sh)

https://gallery.mailchimp.com/c8ce19146fdeb5b5892b7679b/files/e4a7aad0-5019-4113-a4a9-b459e60822c8/Cannacord_Genuity_Namibia.pdf

Some interesting Points from the Report

• Unrisked valuation for Big “S” is US$5.3/bbl (338p/sh +3,655%)
• Unrisked valuation for Cormorant is US$5.4/bbl (3.5c/sh +288%)
• 4 wells to be drilled operated by Tullow, Chariot, Total, Shell
• “S” different prospect type to Cormorant - independance of risk
• 29% chance of success for “S”; 15%-20% for Cormorant
• Chariot targeting same Source & Reservoir derisked by HRT wells

GLA

[buccaneer1961]

you should include the share structure....the other has billions

[douginil]

Namibia: Eco (Atlantic) Oil & Gas- Surrounded by Exxon, again


Thanks to Malcy's Blog (https://www.malcysblog.com/ free)

I thought it highly interesting to see that Exxon had farmed into the Azinam acreage offshore Namibia in the Walvis Bay so I took the opportunity to chat to Eco (Atlantic) CEO Gil Holzman about its relevance to them. Exxon has farmed into acreage which is adjacent to all four Eco blocks in the Walvis Basin and is clearly building a significant position in this up and coming post code. With Tullow drilling next month and Chariot after that, there should be a light shining on the area as we head into the autumn.

[DrillaHill]

Namibia 2018 Drilling: BIG "S" vs little Cormorant

Pancontinetal rocketing pre spud of little Cormorant, think we can expect the same from Chariot pre spud of BIG "S" - much greater potential and chance of success.

[DrillaHill]

Ocean Rig Poseidon on its way to Cormorant
https://www.marinetraffic.com/en/ais/home/shipid:713290/zoom:10
…little Cormorant ~350km away from Walvis Bay @ 5knots I reckon arrival by tomorrow midnight ~34 days to drill then passing on Poseidon drillship to Chariot for October drill of BIG "S" 459mmbbls pmean resources, Chariot Operator with 65% ownership, High Chance of success 29% due to Wingat & Murombe wells having derisked Source & Reservoir, 2.4bnbbls follow on potential, FinnCap assigned 173p per share in the success case (current shareprice 9.5p). At US$5/bbl BIG "S" would be even worth 318p per share (+3,247%).

[buccaneer1961]

https://www.offshoreenergytoday.com/exxonmobil-acquires-stake-in-namibian-offshore-block/

[douginil]

Namibia is heating up

Ocean Rig in talks to reactivate warm-stacked rigs as inquiries hit 2012 high

August 9, 2018

Ocean rig currently has contracts for three rigs, with Ocean Rig Skyros on a long-term deal in Angola with Total, Leiv Eiriksson semi-sub in Norway with Lundin till mid-December, and recently secured deals for Ocean Rig Poseidon drillship which will next week start drilling for Tullow and then for Chariot, both in Namibia.

Read more at:
https://www.offshoreenergytoday.com/ocean-rig-in-talks-to-reactivate-warm-stacked-rigs-as-inquiries-hit-2012-high/

[DrillaHill]

"Tullow to start Drilling next week, then Chariot"



(Posted on August 9, 2018) “Ocean rig currently has contracts for three rigs, with Ocean Rig Skyros on a long-term deal in Angola with Total, Leiv Eiriksson semi-sub in Norway with Lundin till mid-December, and recently secured deals for Ocean Rig Poseidon drillship which will next week start drilling for Tullow and then for Chariot, both in Namibia.”

Fully funded to drill "S", however partnering process ongoing in Namibia, Brazil & Morocco with the potential to add significant cash to current position of ~US$30 million!

GLA!

[douginil]

Thanks. Exciting next few months

[DrillaHill]

Starting to move upwards in London (LSE:CHAR) #Namibia



GLA

[buccaneer1961]

that's good roi

[DrillaHill]

"173p (US$2.25) per share in the success case"

Chariot Oil & Gas CEO Larry Bottomley Presents to investors at the Oil Capital Conference (June 2018)

18:58: "Prospect S… finnCap assigned 23p/share risked on that prospect… in the success case that rises to 173p/share…"

20-bagger potential on prospect "S"!

[buccaneer1961]

I like the seismic here I wonder what the pps goes to if they hit on prospect S