Chariot Ltd. (OIGLF)

[douginil]

Chariot

[[ Thanks to Malcy's blog
https://www.malcysblog.com/2022/06/flash-blog-wentworth-chariot-savannah-eco-atlantic/
]]

June 22, 2022



Chariot has announced its audited final results for the year ended 31 December 2021.

Transitional Gas:

Anchois Gas Development Project

· Successful drilling campaign of the Anchois-2 well, completed safely, on time and on budget delivering a significant gas discovery.

· An accelerated field development plan underway as the Company looks to progress the front end engineering design (“FEED”), ahead of the final investment decision (“FID”).

· Discovery exceeded expectations: 150m net pay confirmed across seven reservoirs, excellent quality and consistent dry gas composition which should enable a simple development.

· MoU on gas offtake and partnering signed with a leading international energy group

· Societe Generale appointed as financial advisor to lead the project financing.

· Collaboration / FEED agreement in place with Subsea Integration Alliance to progress the front-end design, engineering, procurement, construction, installation and operation of the development project.

· Management focussed on progressing towards material cashflows as quickly as possible.

Material upside potential:

· The drilling campaign also directly de-risked a material portfolio of prospects within the Lixus licence area.

· The Rissana Offshore Licence, Morocco was signed in February 2022 which surrounds the Lixus acreage and captures gas play extensions from the Anchois wells.

· Potential for multi Trillion Cubic Feet (“TCF”) volumes in deeper plays.

Transitional Power

Renewable Energy for Mining Projects

· Acquisition of AEMP completed in Q2 2021 with the AEMP team now fully integrated within Chariot’s Transitional Power business.

· Projects are developed in strategic partnership with Total Eren, a global renewable IPP focused on low-risk mining power projects in Africa.

· The partnership was extended in January 2022 to cover a three year period, with an option to extend for a further two years thereafter. Chariot has the right to invest between 15-49% into the co-developed projects.

· This partnership is building up a pipeline of African mining power projects and looking to collaborate on other non-mining energy projects and transactions across the continent.

· First project in operation, a 15MW solar project, at the Essakane gold mine in Burkina Faso, successfully generating material returns.

· Two more projects signed in the post-period and in development:

o An MoU signed for a 40MW solar PV project with Tharisa Plc, to provide power to its chrome and PGM operations in South Africa.

o Partnership in place with First Quantum Minerals to advance the development of a 430 MW solar and wind power project for its copper mining operations in Zambia – one of the largest renewable private sector energy projects in Africa.

Green Hydrogen – Project Nour

· Exclusivity awarded over licences to develop a large scale green hydrogen project utilising renewable power to split water through electrolysis.

· Recent Pre-Feasibility Study confirms that Mauritania is exceptionally well-placed for green hydrogen production due to its unique solar and wind resources and the project has the potential to produce some of the cheapest hydrogen in the world.

· Domestic benefits for Mauritania include providing baseload power to the national grid, diversifying industrial activities (e.g. green steel), promoting job creation and developing local infrastructure with the potential to have a significant impact on GDP.

· Framework Agreement in place which defines the terms and guiding principles to pave the way for the in-depth feasibility study that will be undertaken over the next 24 months.

· Optimising project fundamentals through reducing acreage position to 5,000km² therefore allowing for a more focused scope

· MoU signed with the Port of Rotterdam International, a global energy hub and Europe’s largest seaport which represents a first step towards establishing supply chains.

· Partnering process underway with the objective to form a world class consortium.

Other licences

· Whilst fully written down, Chariot has retained its interest in its licences in Brazil with no work commitments going forward and will host datarooms for interested parties as required.

· The Central Blocks in Namibia have expired but Chariot retains a 10% back in right in the Southern Blocks as a low risk future option.

Corporate

· Further to the successful equity fundraising of US$25.5m and $4 million Open Offer announced in June 2022, the Company is well financed to take the Anchois Gas Project through to FEED and FID, in addition to progressing the Company’s wider asset portfolio.

· Oversubscribed equity fundraising completed in December 2021.

o Year end cash position as at 31 December 2021 of $19.4 million with no debt and minimal remaining work commitments.

· Senior leadership team fully aligned with shareholders, with the Board owning 9.57% of the shares in issue following June 2022 fundraising.

Outlook

Chariot is focused on:

· Delivering prompt FID on the Anchois gas development

· Progressing towards production and material cashflows from Anchois as quickly as possible.

· Strategic partnering in Morocco to accelerate growth from a portfolio of high value, low risk upsides

· Further development of the pipeline of Transitional Power projects.

· Evaluation of further value-accretive new ventures in line with the Company’s focus on the theme of energy transition.

Adonis Pouroulis, Acting CEO of Chariot commented:

“During what has been a turbulent macro environment since the onset of the COVID-19 pandemic, I am very proud of the progress we have made across the business over the past year, as we continue to establish our transitional energy platform within Africa. Our mission is to create value and deliver positive change by investing in projects that are driving the energy revolution and we are fully committed to executing our plan. Through progressing and accelerating our gas development offshore Morocco we are looking to provide a gas hungry market with domestic supply; through our renewable power projects we are materially reducing the carbon emissions of mining operations in Africa and with our acreage in Mauritania, we are progressing what has the potential to be one of the world’s largest green hydrogen projects and a key source of green energy in the future.

As a nimble and entrepreneurial team, we will also continue to leverage our network and utilise our expertise to seek out new ventures where we can play a key role and that fit within our ethos and strategy. We are excited about the potential that sits within our current portfolio, as well as opportunities that the future holds. We look forward to our ongoing progression and evolution as a company and we thank our shareholders for their ongoing support.”

A very much in line with expectations set of results today with nothing that wasn’t already in the market. CEO Adonis Pouroulis is very confident and so he should be.