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I also think it will still be a year or two before Chariot sees any revenue from Loukos, but the fact that they would already have a couple of production wells in place, as well as a plan for achieving cashflow in incremental stages, would make Loukos a lot more attractive, either to farm in partners and/or a consortium of banks. Taking developmental action now means Chariot either get to keep a lot more of the pie, or there'll be more competition to provide the debt financing based on a lowered risk profile (which would mean better terms/rates).
That is only required for gas going direct into the main Kenitra pipeline and if that is the way we go, which we will likely as it all upscales, then it will done as a JV between VIVO and chariot , however it will be in tandem whilst still using CNG process imo…
Ok. Thanks for the info.
What about the eventual CPF and other infraestructure required to produce the gas?
Regards
Fernan 10, why are you proclaiming that ? i dont see anyone , (even here) so naive to assume what you state. You are aware chariot has received EIA for up to 20 wells yes ? seebelow.
The EIA covers a total of 20 well operations, including:
o Initial drilling campaign of 2 exploration wells on the Gaufrette and Dartois prospects
o Further 17 candidate well locations
o Re-entry of an existing gas discovery
· The permit is valid for a period of 5 years
it has been advised by posters and by company that the fastest way to monetisation will likely be via CNG and not pipeline.
For CNG all the downstream would be done using VIVO energy facilites , our partner ! the second largest gas provider to industry in morocco . all that is required is essentially transportation of the gas from the wellhead direct to the processing facilities by large vessels, again owned by VIVO…. . what is it your exactly alluding to Fernan ? i will be clear even if the first 2 loukos wells are gushers which i am confident they will be, it will be 8-12 months before any monitisation from these.
Fernan,
Chariot have already performed and received an Enviromental Impact Assesment (EIA)
https://www.lse.co.uk/rns/CHAR/eia-approval-received-for-loukos-drilling-campaign-sijdq5arme5jqnm.html
They wouldn't be using expensive production grade casings if theses two wells were exploration only.
Does suggest they are very confident that they already know exactly where the gas is located and in what quantity and in what quality/type of reservoir.
Thebold,
Yeah, a fraction of the price in Morocco.
Wouldn't a deal with Vivio for x% of all Loukos gas sales in perpetuity (in lieu of pipeline capex) be the more likely option to go down? Vivo then also responsible for all maintence and repair of the pipeline too. I think that's generally how they do it in North America. Anyway, probably won't even be up for discussion until Chariot are onto their 4th or 5th well (unless they were to hit that 300m reservoir Jimmy talks about :)
Was thinking similar for the first 2-3 wells, a very simple transportation set up. Kenitra looks to be about 75-80km away from Loukos.
Some posters here seem to think that we can start producing and selling gas right after a comercial discovery.
Don't we need to perform an Enviromental Impact Assesment (EIA) first? In the case of Anchois, the whole process of submiting and getting the aproval of the EIA took months if not years.
What about the CPF? Are we going to use Anchois' CPF, or build a separate one?
What other infraestructure do we need to have in place before producing any amount of gas?
Regards
Hi BDC,
North American gas pipeline costs have risen but are globally very high and also include some of the highest ROW ( right of way ) costs in the world. I would safely estimate pipeline costs in Morocco would be significantly cheaper than Europe or North America.
For an 8” tie in to the Kenetra pipeline I would estimate circa $2mm -$2.5 per km , so if 15km needed to tie in, looking at circa $30 -40mm potentially.
Would need, I estimate a minimum of 6-8 flowing wells combined at circa 20-25 mmscfd to make it viable imo . VIVO energy our gas partner would obviously play a pivotal role in which ever way it goes and also any project for a new tie in pipeline would imo be undertaken by them and Chariot, Chariot are planning up to 20 onshore wells over Loukos so are obviously looking at upscaling to pipeline tie in . CNG will be way to go for imo at least 2 years until we see proven upscaled multi well production. VIVO energy have CNG mobile units and it’s essentially hook up direct to the production valve on the XT / manifold. The capex for a new tie in pipeline being split I imagine, any funds needed easily arranged through a simple debt facility offset against future gas sales., also With a potential of $75 mm incoming to chariot for offshore assets,, chariots capex portion of a small 15km 6-8” pipeline to tie into Kenitra does not seem to hold any financial constraints whatsoever ever imo after CNG operations are outsized on successful multiple producing onshore gas wells.
Thebold,
Looking at Chariot's scaled map, the start of the pipeline network that feeds gas to industry in Kenitra in the South, looks to be approximately 15km away from our drill sites in Loukos.
Hi BDC,
The OCTG that AP and PR were pictured by in the operational update end of Jan is production tubing , looks likely to be 4-1/2” , this is optimal size for gas flow from relatively medium flow gas wells, which Loukos wells will be..
The clue from the picture was it was “ Production tubing” so wells are going to be completed immediately for production and CNG via simple offtake at the Xmas tree/ manifold imo.
I imagine the pipeline tie ins will all follow once we establish the CNG operations with VIVO energy ….so to reiterate to FUD spreaders, at least the first 2 Loukos wells are being run with production tubing, which AP and PR were smiling next to .
Words from AP in last few days from other chariot SM sites, the gas in the Loukos wells is lighting up like a beacon in the AVO signatures. Massively exciting times ahead for sure.
Hi Surfit.
I´m not saying we are fully funded until onshore production.
On the contrary, we are funded only to drill the 2 upcoming exploration wells (see my post here on cash balance and financial runway on March 1st).
What I´m saying (read my last post again, please) is that funding the development is not an issue for the time being. Before start thinking about that, we need to prove the resource, including volume, quality of gas, and economic viability.
This is the way oil & gas exploration companies normally operate.
Regards
Hello Fernan: I was actually concerned how we were going to fund the offshore development directly after I came in post Stena Don drilling campaign.
If you and BDC belive we are fully funded to production of onshore gas, then fair enough.
I am not.
It may be that we secure addtional financing, figures crossed, if not its another share placing and further dilution.
Time will tell, I hope your right.
All the best Sft
Surfit:
you seem extremely worried because CHAR didn't provide any assurances in relation to how they plan to fund the eventual development of the upcoming onshore prospects.
I think it's absolutely impossible for CHAR's management to provide these reassurances for the time being.
First, they need to prove the resource. They need to know that what they have discovered is valuable, something that it's worth being developed.
Then, and only then, they will look for funding and development options (bank debt, farm out partnet, etc).
When CHAR drilled the Anchois 2 exploration well back in January 2022, they have no idea how they were to fund the eventual development. That lack of clarity didn't prevent the share price to go substantially up on news of the gas discovery.
Regards
As I'm fortunate enough to be in the ABC camp, I'm not interested in encouraging other investors to do more research or rather, I'm not interested in doing their research for them. I think investors will turn up post-drilling results and pump the price anyway, hopefully after Loukos, but might have to wait until post-AE. I don't really care either way as this morning I was able to buy another decent amount at 7.41p and I'm closing in on an average of 11p. Just a couple more top ups and I'll be there. Ultimately, I'm then just happy to wait for Anchois to unfold, as that's the real jewel in Chariot's crown.
Regarding Loukos, in the latest presentations Chariot have been indicating that they're most likely to CNG the gas from the first few Loukos wells, which would be the cheapest & quickest way to get the anticipated 10 mmscf/d to market. When asked about the $3 million per well cost and whether this was total cost per exploration well or per developed well, Duncan replied it's for both. In which case, they must be going straight in with production-grade casings.
Not aimed at you LW.
IMO the seller will be cleared this week, a lot of talk on other chariot SM sites re this.
Chariot are currently fully funded for the first 2 Loukos wells , as per reiteration from Celicourt.
I wasn't baiting The Bold, I was genuinely wanting to know how/why you say the selling will stop this week. That is a very relevant question for those us considering adding more but being hesitant to do so because there's a large seller on the loose here.
I also thought that Chariot was fully funded for this drill. I might have read it but have a hazy recollection of hearing it from JMW in a webcast. Either that or the recent one that AP did, because those are the only two videos I have watched since re-entering here.
There does seem to be some support/buying at this level, so let's hope it's the pre RNS bottom. All imo
Well an investor would not be invested if they thought there was likelihood of projects they had invested in were not going to come to fruition.
So BDC point C , fully reasonable for INVESTORS.
False, baiting, flaming and inaccurate posts taken down.
Discuss the company and not posters Kingbilly .
@BDC
Shouldn't C) be: Can afford to wait and see if these Moroccan gas assets progress through to production?
Hello TheBold, Good points (Jimmy has also thought similary).
Such is YET to be determined of course and maybe that's why we (imo) have NOT had the FINANCE conformation/assurances I.e. Such financing MAY well ALL be being currently negotiated in ANTICIPATION of a successful drilling campaing ??? Figures crossed, and would be the best way forward when underfunded and after so many share placings and dilutions?
Hey BDC: Okay, it must be difficult to find? Or not readily available? but such a link placed on the bb would surely encourage other investors???
GLA
Rgds Sft
A) You haven't put you & your families entire life saving into Char
B) Have regular spare income coming in
&
C) Can afford to wait for these Moroccan gas assets to progress through to production
The current share price is a gift.
imo.
Think you will find VIVO energy will be playing a big part of forward capex for onshore gas, who’s to say we will not be selling direct from the production manifold, especially,if it’s CNG as mooted.
Chariot signed a partnership with one of the top 2 Moroccan gas suppliers into industry …ie VIVO…
On commercial viability and signed GSAs , capex costs can also be easily provided as debt against future gas sale revenues…
Loukos is currently 75% owned by chariot, so there is maximum flexibility I would have thought.
The information is there if you care to look for it. Don't wish to sound rude, but I'm not here to do other people's research for them.
Hello BDC,
Re "Or you could just read the most recent RNS's and listen to the most recent investors call ¯\_(ツ)_/¯"
I have had ANOTHER scan back and only found the two RNS below RNS relevant
29th Jan 2024 7:00 am RNS Operational Update
No fiscal assurance regarding fully funded to production for onshore
10th Jul 2023 4:32 pm RNS Proposed Placing, Subscriptions and open offer
1 For near term onshore drilling and development planning on a new onshore Moroccan Licence, expected to be awarded imminently; and
2 New ventures and working capital (🤔)
I may well have missed a conformation of fully funded to onshore production, If so I apologise. If you could post which RNS gives us the assurance conformation. It would be appreciated.
I would love to belive the investor calls, I do remember a bb poster found (sorry to whom it was) and posted good evaluation stating they they need $28million.
It was the only price placement on the onshore programme, I have seen. I should have kept the link!
A repost of that artical would be good as I have not been able to find information from CHAR on ALL costs.
Again BDC a link to the RNS would be greatly appreciated.
All the best Sft
IMO, Should be all completed or as near as hopefully with only 3 and a bit weeks remaining in Q1.
Exciting times ahead for sure, Loukos spud, Offshore news re ENOG imminent, first tranche of cash incoming , offshore drill unit advised, project Nour being run through at highest level with Mauritanian govt by close of Q1, hopefully Total Energies will show more of the cards.
IMO , once the large distressed seller is cleared , it’s up we go with a barrage of news flow accompanying ..
lots of chatter now happening, with all above being discussed across numerous domains ..
Time to get the show moving.