Chariot Ltd. (OIGLF)

[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/