Posted by Jimmy on Helios Chariot board:
Chariot held a conference call to discuss the interim report and presentation. The conference call is on chariots web site and ii recommend all investors to listen to it. It’s 45 minutes long so I set out below the new information I learnt.
Firstly, Larry and mark presented very well and they clearly got the message across that chariots strategy was to achieve zero cost exploration in highly prospective areas where transformational prospects would be drilled by third party major oil companies who would reimburse chariots past costs and drill exploration wells at no cost to chariot.
The following points were worth noting.
1. Chariot have opened a data room in September to farm out its central Namibian blocks. The main prospect is prospect b. the aptian and cenomanian/turonian source rocks which generated oil in HRT Wingat and Murombe wells have been mapped from those locations to prospect b where they are located at a similar depth and in the oil window. The santonian good reservoirs found by HRT in its Baobob prospect are also mapped to be present in prospect b , but are better and more consistent with the high quality sands found by chariot in it’s tapir we’ll and another well in block 1911.
2. Chariot will spend $3m this year ordering long lead time equipment for a well to be drilled in 2014, after farm out. Obviously high expectations of a farm out.
3. The k1 well in block 2714 a failed because of a high temperature gradient in the well which matured the deep source rock before the nimrod prospect was in place. However, world class source rocks were found above the nimrod prospect and the source rocks were not buried deeply enough at that location to be oil generating. These source rocks are mapped as being deeper and oil generating in nearby block 2714 b .
4. Chariot will be shooting a huge 2d seismic survey in block 2714 b in 4q 13 which will target prospects that will be charged by these proven oil source rocks.
5. Chariot expected that the hrt Moosehead well was high risk , due to over mature deep source rocks and reservoirs which they believed to be poor.
6. Northern block farm outs on hold till after Repsol drill their next well nearby, that well depends on long migration pathways for oil to charge the prospects, if it works for Repsol it would high grade chariots Zamba prospect.
7. High quality seismic in Mauritania achieved, seismic time lines received, depth converted lines expected in November. Initial indications show prospects in both shallow and deep water.
8. Morocco 2d mapping underway, a lot of third party activity in the area which will inform prospect selection.
9. Brazil , nothing happening while environmental permits are being obtained. However, even though the blocks are classified as shallow water, the major prospects are in it’s deep water sections . Third party drilling will occur nearby before chariot has to drill in several years time.
10. Chariot have no interest in acquiring HRT.
All good stuff, a great diversified portfolio, strong track record of farming out so it’s just a matter of being patient till lady luck helps out. Incredible value as chariot valued at cash and has a book value of 64 p after writing off past dry well costs..
Jimmy
