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Just done the maths, we've traded about 260m volume since the transformational news last week Monday.
Profit bankers at this level must be nearly exhausted imo.
A juicy news with the webcast next week should see a good rise .
targets , FinCapp 54p and PH 41p
Cove got bought primarily for their 8.5% share of the giant 50 TCF of gas resources offshore Mozambique for GBP1.2 billion in 2012.
Made me good returns on my small investment then.
Lixus has 1TCF and from this transformational A2 results could potentially hold 5+ TCF This is located just south of Spain , offshore Morocco. Also compare the gas prices today and European demand to 2012.
We are sitting on a 10 bagger from this level imo and as Malcy said
A 10x bagger from here would be 90p. Do you really think that's doable?
The only thing that will stop this from a ten blagger is if char get brought out on the cheap but you will have to be patient IMHO
Regards
The reference to cove being bought out for its 8.5 % interest in Mozambique for £1.2 b is only partially relevant because it was undeveloped but it was so remote and large it would need ten of billions to develop with an LNG plant to export worldwide and probably take circa 8 to 10 years to get to cashflow.
The chariot anchois field will be in cashflow in 2024, cost approx $300million to develop and its getting a gas price of circa $8 mcf, per Larry b on this site, the current price in Morocco is actually 10% of Brent price plus $0.50 so about $8.90 mcf.
With a major pipeline onshore with capacity to receive this volumes for both domestic and international buyers.
Chariot are likely to hold a gas field interest that will generate circa $3 billion in free cashflow, and the state oil company is supporting its rapid development which will reduce Morocco huge coal powered usage.
And then there is the value of the multi tcf exploration targets in the rest of the licence.
Jimmy
Exactly Jimmy, the Cove example just goes to show the huge potential Char has and a no brainer of an investment today under 10p. ( market cap of GBP 76m)
This can potentially be a 20 bagger from this price with 2 /3 years from now.
Gas demand in Europe is only going up
This is way way undervalued and ridiculously low priced, don't let the mm's and other large investors trick you into selling as you will be buying back at a lower price. News on the horizon and further positive momentum to follow which has not been reflected in the current price. Hold or accumulate.
Malcy - "The market has not yet got the hang of this, to repeat I think that the shares could and should rise by a multiple and it's going to be quicker than many imagine, not often a five or even ten bagger sits in front of investors."
Simon Thompson - "It could double again once investors cotton onto the implications of the latest drilling news. Buy."
finnCap - "As a result, FinnCap has hiked its prior price target. At 54p the broker's new target suggests more than 400% upside to the current price of 10.05p."
Jimmy re: free cash flow, do you envisage a 300m annual revenue stream?
Chariot previously reported in June 2019 presentation that daily volumes from A, b and c sands would be 90,000 mcf per day.
So the revenue number is 90,000 x$8 x 365days x 75% x .96.5 % (royalty of 3.5%) = $190 million net to chariot per year.
Obviously does not include O reservoir, so assumes that such reserves would extend field life.
Jimmy
By Malcy:
Make no mistake this is a tremendous result and takes Chariot a number of steps all in one giant leap and I am not exaggerating by saying that this is a momentous step for Morocco as well. This result is relatively straightforward in that the 2nd leg and completion of the successful gas drilling operations, on the Anchois gas project has been swift.
The operation needed to find the Anchois 1 discovery, confirm the integrity of the well, latch it on to the drilling rig, confirm that it would be able to be a producer and even cleaned up the BOP. This was so efficiently done that there was no need to take any sample of A sands in particular as from the last announcement 2 A samples have been sent to the lab.
This was another piece of good news and also enhances the well economics, by not perforating the well money was saved, the well looks ready now and Chariot has two fully workable first steps to development. The rig leaves site tomorrow making it an efficient and successful, not to mention cheaper than expected well.
Support for the Anchois development is lining up outside Chariot as banks jostle to lead the consortium of financiers and I’m absolutely sure that not only will other major companies be involved in the development but Chariot could easily take a wedge of that investment themselves.
Finally as I indicated earlier this is a success that is being shouted from the rooftops in Morocco. Partner ONHYM, whom I know well, are clearly delighted as is the Government who have power plants in a number of areas which could take any amount of gas at any time.
The market has not yet got the hang of this, to repeat I think that the shares could and should rise by a multiple and it’s going to be quicker than many imagine, not often a five or even ten bagger sits in front of investors.
You were calling it a pump and dump yesterday CoolMax. Make your mind up!
What's the chances of this getting back to 12.75p or higher by the time of the Webcast on Wednesday and with yesterdays antics all but a distant memory.
I ask for I think somebody was soaking up any sells today and definitely made a statement trade in the last 10 minutes with an over 500,000 purchase just to flex the muscles of their bigger buying power into the close.
Jan 21, 2022 16:22:08 9.88p 506,072 £49,999.91
Latpull, I won't be surprised to see this pass that 12.75p
by Wednesday. Sellers cleared and char moves fast on volume.
Jung - do you ramp every stock you own?
Why not shout out a good story? My largest holdings by Size, char, bids and lnd.
Finncap risked NAV 54p unrisked 319p here.
Best pick today on AIM imho at 10p.
After the huge success in all the sands , char should be trading at 20 to 30p.
"Should be" and what it is is two different things.
Can't lie I am mildly disappointed we aren't sitting above 10p
Still a few implications to deal with to get this one going!
The development plan from a Pre-FEED study consists of two subsea wells tied into a subsea manifold with a 40km offshore flowline connected to an onshore gas processing facility, from which a short 40km pipeline connects to the trunk pipeline to Europe allowing access not only to the growing Moroccan energy market but also to the European gas market.
In Q4 2020 Expression of Interest Letters to debt finance the development were received from the African Finance Corporation ("AFC"), a pan-African Multilateral Development Financial Institution with over US$6 billion in assets, and a major Multinational Investment Bank.
In December 2020, the key terms of a new Moroccan licence were negotiated which is approximately 3.5 times the area of the Lixus licence. The Rissana Offshore licence completely surrounds the offshore boundaries of the Lixus licence providing material potential running room in various gas plays on-trend with the Anchois gas discovery.
I've just rewatched the Duncan Wallace interview:
https://www.youtube.com/watch?v=CU3HaZOYCOY
It gets very interesting from 4.14: describing the development of Anchois and the potential of the Lixus licence. Given the confirmation of their seismic analysis the Anchois 2 drill gave, I think they will be looking to plan the entire field development economically, not just the Anchois family of prospects. I would like to know the scope of this ambition and whether the planned capex is intended to cover the necessary exploration. I suspect any 'acceleration' will mean the rapid ramp-up of development of the entire field rather than a sprint for gas from wells 1 and 2.
I agree there snott. Looks like the development will now be bigger than originally planned with the A2 gas discovery in the deeper sands .
We should know a lot more over the next 2 months imo