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Wow! I'd forgotten what BLUE looked like !
Yes, Char just needs to execute on its plans, with no major hiccups, starting with this Q1 drilling at Loukos. I would expect a RNS to land about this any day now as we approach the "end of Q1". Does anybody how long each of the two targets will take to drill and test? Also during this period, we should get the regulatory approval, which were described as "standard".
Plenty there to kickstart the share price back into life. With the ? that have been raised on here, I'm sure there are buyers waiting on the confirmation via RNS before committing.
Well we are now into March, they anticipated things moving on the onshore drilling program by end of Q1, so "hopefully" we will start to see news flow on that front and momentum kick in. Going to be a VERY interesting 2024 for Chariot for sure, and hopefully it translates to some notable upside for those invested.
Numbers in million US dollars
CASH BALANCES
*Cash balance on June 30, 2023: 2,7 (see balance statement)
*July 2023 placing (proceeds net of broker fees): 15
*July 2023 open offer (gross proceeds): 3
*Broker fee on open offer (assumed 7%, similar to share placing fee): -0,2
*Buying of additional interest in Etana
Paid in Dec23: -0,3
Payable on March 31, 2024: -0,7
*Provision for the drilling of 2 onshore wells: -6
=Net cash available for G&A expenses/business development costs: 13.5
CASH BURNING RATE AND FINANCIAL RUNWAY
Cash burning in 1H 2023
Hydrogen/other business development: 0.9
Share based payments: nil (paid in kind. See Consolidated cash flow statement for 2022)
Other administrative expenses: 3.5
Total cash burning for 1H 2023: 4.4
Monthly cash burn rate: 0.73
Available cash forecast for end of March 2024: 13.5 – (0.73 X 9) = 6.9
These numbers don´t include any amount spent in the development of Anchois (for activities such as conclusion of FEED, negotiation of gas sales and partnership agreements), accounted for as capital expenditures for the project.
CONCLUSIONS
Assuming (rather pessimistically) that 3 or 4 million were spent in Anchois during the last few months, the company will still have 3 or 4 million of cash available by the end of March. This amount is enough to sustain operating expenses until July or August (at a monthly rate of 0.73), waiting for the 10 million to be received from Energean on Moroccan approval of the partnership.
Assuming (also) that our management doesn´t want to raise money to build another water desalinization plant somewhere in Africa, or something similar to that.
I am really surprised by the current share price.
The farmout to Energean is likely to result in the following cash payments, $10 million on approval by moroccon govt, $15 m on development approval and $50 million on reduction of licence interest to a finance carried development of 20%. Total $75 million or approx 5.9 p per share plus the value of the proven gas of 20% of 635 to 1000 bcf.
Predator valued 1bcf at $2 million npv, so even at half that it’s worth an additional $127 to $200 million or 12 t o 15 p per share.
Value opportunity for investment in a fully funded company, which is misunderstood.
Jimmy
😂
Whimax types words on here that suits his narrative. Nothing more.
"...so how do you decide and who decides whether the decline is as a result of it."
Err... the basis for the inference is quite straightforward, and I would argue, irresistible. The partnership deal with Energean was announced on 7 December. This selloff started on 7 December. Just look at the volume on that day.
Now it doesn't mean the partnership terms are bad. It could well be that particular shareholders didn't like it for other and more personal reasons.
But as I keep saying, I can count on 1 hand the number of private investors that have sold since the Farm In announcement, so how do you decide and who decides whether the decline is as a result of it.
All the same people are still here as far as I can tell, so as a snapshot of “the market” it’s NOT private investors that are selling, and those that are are doing so out of frustration at the share price and being margin called. If it had about “the deal” many more would have gone before now imo.
Anyway, each to their own. I happen to think this is not PI related and not deal related, as I’ve said before.
Time will tell, but I ain’t leaving at this point,no fkn way, and neither is anyone else here by the looks of it..
GL all.
"Why not just leave us idiots to our own devices?"
Whimax - I was last on here over a fortnight a go so I dont need that childish comment from your type.
Time will tell.
The selling seems to have coincided with the Energean deal being announced. Therefore it is linked to Chariot in that sense.
Maybe it is RiskyBusiness, and maybe it will, in which case why do you continue to waste your valuable time posting here.
Why not just leave us idiots to our own devices?
Whimax .. Maybe the market is just saying that this stock is a POS. Isn't that the logical conclusion on a sp that has hit its yearly low today and will probably go lower.
No, we don’t imo.
What we know is someone is selling (we can see that by the AT Trades every day). What we absolutely don’t know is why, so it’s entirely wrong to assume it’s related to Chariot. In the current market, it could be for a plethora of reasons.
Unfortunately, given the Continued SP slide we have to concede that a person (or persons) know something that the rest of us do not
@thebold
https://www.cailaw.org/media/files/IEL/Publications/2015/acquiring-upstream-vol9no3.pdf
Pages 4-9 address how carried working interests are usually dealt with in these sort of JVs. I would be extremely surprised if Chariot had negotiated a contract whereby they can allocate centralised corporate costs, or costs from other parts of their business. Moreover the RNS specifically addressed what the $85M would cover:
Energean agrees to carry Chariot for its share of pre-FID costs (which are recoverable from
Chariot’s future revenues,see terms below), up to a gross expenditure cap of $85 million, covering:
o drilling of the appraisal well; and
o all other pre-FID costs; and
o up to $7 million of seismic expenditure on the Rissana licence.
You are right - I believe hardly any of Chariot's operating expenses can be allocated to the JV. I think what you are conflating is the costs incurred that have been recognized as 'exploration and evaluation costs' in their financials (approx $20M in 2022). These have not been expensed, but have been recognized as a current asset under IFRS 6 - this is separate to the approx $1M per month cash burn I'm talking about.
Hope that helps. Again, thanks for the insults.
I think someone maybe ate too many skittles and might/should be a little embarresed when rereading tonight's posts, step away from the keyboard Shareholderchar :-))
I'm sure everyone saw the below article re ENOG
The new contract with Eshkol is a further testament to the trust in Energean from the Israeli electricity producers, adds circa $2 billion of revenues over the life of the contract to our business, and is in line with our strategy to secure long-term reliable cash flows from long-term gas contracts,” added Rigas.
At the end of 2023, Energean revealed a new country entry in the Mediterranean region with plans to take over the operatorship helm at two Moroccan offshore licenses from Chariot, thanks to the duo’s partnership agreements.
…..
ENergean is very much now in control…..
And I never mentioned recoverable, there is very clearly an escrowed $85mm instantly available for immediate use to get Anchois to FID..
It matters zero where costs were allocated prior, any half dumb cfo could easily reallocate majority of O and A costs to its flagship project.,,,.however you wish to FUD saying zero costs will be allocated and 100% of all costs are coming out of available cash at hand . Complete and utter FUD, but u know what maybe not because perhaps ur just totally fick…
An absolute FUD’er , 100% obsessed with trying to talk it all down.
You clearly have zero experience, knowledge or overview of how A flagship project would be allocated in a A G and A world,,, all you want to do is sow doubt , which with me you have zero chance with, with others here I suspect you do… 100% bawbag….
@thebold - I'm afraid you are just wrong about 60-70% of costs being recoverable. Only directly attributable, allocatable costs would be covered under the agreement. If you look at Note 3 to the financial statements (2022) - you'll see the vast majority of the costs are attributable to both the transitional power, and corporate segments. These will not be recoverable. But thanks for the insults and name-calling as always.
Oops. I'll leave you two to it.
Yay. SHC you are back amongst us, still suffering with us, maybe more as you do hold a helluva of a holding still? I'd imagine you are at least 4% now?
Either way you know your onions and I'm sure you are as perlexed as the rest of us as we slip into the 6's soon. (By looks of it anyway)
I wonder if the precious one is also lurking or oiltap?