Chariot Ltd. (OIGLF)

[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/