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Courtesy of Surety
Next drill, maybe August
"Our overall unrisked NAV for Anchois, including Anchois East Footwall and Anchois East North Flank, is £0.42 per share"
Chariot (CHAR LN) C: target price of £0.50 per share: High impact well offshore Morocco on track to spud in August – The FY23 financials were in line with our forecasts. The high impact Anchois East well is expected to spud in August. A drilling success could increase the size of Anchois to over 1 tcf (300 bcf net to Chariot). Our overall unrisked NAV for Anchois, including Anchois East Footwall and Anchois East North Flank, is £0.42 per share.
Testing of the Dartois discovery onshore Morocco is expected to take place in 3Q24. Subject to the results, first gas could occur in early 2025. Chariot will initially transport the gas to market as CNG. Demand is the area is estimated at 10 mmcf/d. Éclair and the adjacent Éclair West closures are follow-on prospects which share the same reservoir system, seismic attribute support and similar burial depths. This group of prospects is estimated to hold 32 bcf gross prospective resources.
https://www.lse.co.uk/ShareChat.html?ShareTicker=CHAR&share=Chariot&thread=8316B44A-E218-4278-A05B-3F011898B57A
https://www.lse.co.uk/ShareChat.html?ShareTicker=CHAR&share=Chariot&thread=AC3363C4-8592-4E19-8AFB-94A562D43B1E
https://www.lse.co.uk/ShareChat.html?ShareTicker=CHAR&share=Chariot&thread=0DE08F2F-0F52-4F88-A624-219B98D96B7A
So why the recent drop? I think Lergal is in here but he hasnt replied to my last question about the recent drop.
Funding, only money issue July on, sometime after there is $15m due to them, depending...
Final Investment Decision FID
Conclusion
The forecast indicates that there will be a cash deficit from July 2024. To manage this the directors mitigating actions include cutting discretionary expenditure and deferring creditor payments until funding across the business at an asset, subsidiary or Group level are successful, however, it also acknowledges that this short term funding is not, at the present time, in place.
Longer term, subject to successful drilling results at Anchois East, Chariot, in partnership with Energean and ONHYM, are focused on reaching FID shortly after the drilling and testing campaign has completed which could result in $15 million cash inflow within the going concern forecast period.
https://www.lse.co.uk/rns/CHAR/2023-final-results-43qdlfetkid3qc9.html
Can you tell us more about securing Energean as a partner?
During the first half of 2023, we completed the FEED phase at our Anchois gas project which defined our initial development plan and confirmed the commercial viability of this significant discovery. As we progressed our FEED project, we also undertook a partnering process in order to be able to look to upscale and deliver the potential that we saw this project offers. This process generated significant industry interest where we had multiple offers and we were delighted to sign agreements with Energean, the FTSE-250 company, as a partner across our Lixus and Rissana licences. Energean acquired operatorship and 45% in Lixus and 37.5% in Rissana, with Chariot retaining 30% and 37.5% respectively and ONHYM maintaining its 25% stake in each licence. We received US$10 million on completion of this deal, we have a US$85 million gross carry on Lixus pre-FID costs which includes the Anchois-East well and flow test and a further US$15 million is payable on FID. They then have an option to acquire a further 10% for a gross development carry of US$850 million to first gas, a US$50m convertible loan note or 3 million Energean shares, and 7% royalty payments on their production revenues.
Ah rigt, a real shame its destroying the SP, they have two good wells just need to bring them online. Maybe they are trying to hold of raising so the dilution is minimal or crasing the SP for a new investor to jump in on the cheap?
Maybe funders are wanting a big discount, being greedy like with He1..
Funding is getting really dangerous for the LTH, and even traders,,
He1, dilution by a 1/3, plus what's left reduced in value by more than half, double whammy
Yeah the funding seems brutal right now, its very risky holding these shares when one is due as the companies are almost advertising they need one so helping to push the SP down.....
Hi KR - sorry for the delayed response. Char's latest RNS has basically confirmed that they have enough cash until July, but are taking some cost cutting measures and looking at financing options as well. Some have interpreted this to mean a likely placing, others are saying the BOD won't dilute ahead of a massive drill, and will get some non dilutive financing in through their other assets.
I have decided to exit with the little gains I had left and re-assess. The drill coming up in August is MASSIVE. But the problem remains the cash position. Char are NOT due any more cash from ENRG until some months after the drilling and as part of FID. What if the drilling, even if described as appraisal, disappoints? What if ENRG decide to play the slow game because Char is in a distressed financial position?
So there are some risks with Char that I'm presently mulling over. Whilst I rarely hold for drill results anyway, I don't like to take the risk of being hit by a placing - as you guys well know ;-)
Thanks legal, it’s staying on my watchlist incase a raise or finance is done but right now too risky to invest in